AIR CANADA UNVEILS EXPANSION PLAN

AIR CANADA UNVEILS EXPANSION PLAN

   Air Canada, after receiving approval from the Canadian government to buy
its rival Canadian Airlines, has unveiled plans to expand domestic and international air
services in Canada.
   The carrier said it has "produced a plan that streamlines schedules and
reallocates excess capacity, resulting in significant air service
improvements for Canadians in domestic, transborder and international
markets.
   "The planned new schedule will create new non-stop links and
substantially reduce travel time for consumers and freight forwarders," Air Canada
said.
   In the transborder market, Air Canada plans to launch new service to
Denver; Greensboro, N.C.; Ontario, Calif.; and Los Angeles from Montreal and Toronto. It
will expand service to Chicago; Washington, D.C.; and Las Vegas from Calgary, Ottawa and
Toronto.
   Air Canada said it will launch daily service to Tokyo, Hong Kong and
Mexico from Toronto, pending regulatory approval. The carrier also will seek to rights to
serve Shanghai and Mexico City from Vancouver, and Milan and Rome from Montreal.