Air Canada intends to begin offering live internet service to customers inflight starting next spring under an
agreement announced today with Aircell.

"Air Canada prides itself on connecting Canada and the world and an important element of staying connected today is having use of the internet. That is why Air Canada is taking a major step forward to becoming the first Canadian airline to provide its customers inflight, online access through Gogo. In cooperation with Aircell, and pending Canadian regulatory approvals, we plan to eventually offer internet access system-wide so customers can email, work and surf the net while flying, and more fully enjoy what is already a superior travel experience," said Charles McKee, Vice President, Marketing, at Air Canada.

The airline intends to begin operating Gogo by spring 2009 aboard Airbus A319 aircraft on select flights to the U.S. west coast and will be accessible by customers with a standard, wi-fi equipped laptop or Personal Electronic Device (PED).

Initially, the Gogo system will be powered by Aircell's existing network and only available in the U.S. in order to make Air
Canada's rollout fast, economical and simple. Upon successful completion of the initial phase, Air Canada plans to extend the system throughout its North American and International markets as Aircell's coverage network expands.

Aircell says it is looking forward to the licensing and rollout of a Canadian Air-to-Ground network to make Gogo available in Canada and facilitate Air Canada's future fleet-wide deployment.