Air Canada to Introduce International Premium Economy Cabin; Adds Five New Boeing 777-300ER Aircraft

Air Canada today announced it will introduce a new International Premium Economy cabin for customers seeking enhanced comfort and service on international flights as it continues to modernize its widebody fleet with the addition of five new Boeing 777-300ER aircraft.

Introduction of International Premium Economy Cabin

Complementing its Economy and Executive First options on international flights, Air Canada's new Premium Economy cabin will offer customers a wide range of benefits including a dedicated cabin featuring larger seats that are wider, providing more recline, with seven more inches of legroom than Economy and are never more than one seat from the aisle (due to a 2-4-2 configuration). Customers will also be offered premium meals with complimentary bar service and priority check-in and baggage delivery at the airport. More information on Air Canada's new Premium Economy cabin is available at www.aircanada.com/premiumeconomy.

Air Canada's Premium Economy cabin will be introduced on Air Canada's Montreal-Paris flights effective July 11, 2013. Additional routes offering Premium Economy will be added over time as new aircraft enter the carrier's mainline fleet.

International Fleet Expands and Modernizes

Air Canada will expand and modernize its international widebody fleet with the addition of five new Boeing 777-300ER aircraft. In addition to two Boeing 777-300ER aircraft previously announced that will be delivered in June and August 2013, Air Canada today announced that it will add three new Boeing 777-300ER aircraft to be delivered in November and December 2013 and February 2014. With the addition of these five aircraft, Air Canada's Boeing 777 fleet will consist of 23 aircraft comprising the latest generation of 300ER and 200LR models.

"With the introduction of Premium Economy, Air Canada will begin offering customers a new, high-value option for enhanced comfort and service on international flights," said Ben Smith, Executive Vice President and Chief Commercial Officer. "The delivery of five new Boeing 777-300ER aircraft over the next 12 months provides us with the right opportunity to launch a new cabin of service that will be offered on more of our international flights over time as we take delivery of new 787 aircraft. We will continue to adapt our product to ensure our customers have competitive options to choose from - whether traveling on Air Canada mainline routes or with our leisure carrier, Air Canada rouge, to its vacation destinations."

Competitive International Products

Air Canada's five new Boeing 777-300ER aircraft will be the first aircraft configured with the carrier's new Premium Economy cabin prior to the arrival of Boeing 787 aircraft scheduled to begin delivery in 2014. The five Boeing 777-300ER aircraft will also offer a larger Economy cabin as Air Canada will strategically deploy these aircraft on select international markets with high volume demand for economy travel.

"In today's highly-competitive industry environment, it is critical to continue developing new products and refresh existing ones in order to ensure we offer customers the product features to meet their needs on a market-by-market basis," said Mr. Smith. "We're looking forward to introducing our first new Boeing 777-300ER with Premium Economy on our Montreal-Paris route beginning in July 2013."

Air Canada's Premium Economy seats on its Montreal-Paris flights are now available for purchase, as are Premium rouge seats on Air Canada rouge flights to European vacation destinations: Edinburgh, Venice and Athens. Visit www.aircanada.com for details.

Continued Mr. Smith, "As these new Boeing 777-300ER aircraft enter our fleet over the next year, we will continue to deploy these five aircraft on routes in our international network where market demand calls for a larger supply of Economy and Premium Economy seats, in addition to continuing to offer Executive First business class service.

"The introduction of these Boeing 777-300ER aircraft in our fleet and launch of Air Canada's new Premium Economy cabin on the Montreal-Paris route will allow us to compete effectively in a market with high demand for economy travel that is served by both international network and charter carriers. We are confident Air Canada's Economy and Premium Economy options will distinguish themselves as fresher and more appealing, in addition to offering our award-winning Executive First service featuring lie-flat beds," concluded Mr. Smith.

The five Boeing 777-300ER aircraft that will begin delivery in June 2013 will be configured with a larger Economy cabin with 398 new "slimline" leather seats providing 31-inch legroom consistent with the comfort of Air Canada's current Economy cabin, while the dedicated Premium Economy cabin of 24 leather seats will provide 38-inch legroom along with other enhanced comfort features. Air Canada's Executive First cabin will offer 36 seats that convert into 180-degree lie-flat beds in a staggered configuration of one or two, to allow customers traveling alone or with a companion to choose their preferred seating and sleeping options. Customers in all three cabins of service will enjoy an enhanced individual seat back in-flight entertainment system with hundreds of hours of complimentary audio visual entertainment options featuring larger screens and customer-friendly technology by Panasonic.

Fleet Modernization to Continue with Introduction of Boeing 787

In addition to the introduction of Premium Economy, new seats and a leading edge entertainment system, Air Canada's five new Boeing 777-300ER aircraft will provide customers with a refreshed interior colour palette in modern, neutral tones unique to these aircraft pending the official launch of Air Canada's future in-flight product and cabin design that will be made in conjunction with the introduction of Boeing 787 aircraft into its fleet.

Air Canada's 37 Boeing 787 aircraft will feature a brand new, enhanced version of Air Canada's award-winning Executive First lie-flat beds and product that has yet to be announced, in addition to Premium Economy and Economy options. The Boeing 787 fleet will be deployed on the carrier's current and future high premium demand international routes.