Under the new policy, customers who purchase Tango and Tango Plus tickets may check one bag at no charge and a second bag for a $25 service fee. Tango and Tango Plus customers will continue to have the choice of customizing their fare including obtaining a discount when travelling without checked luggage.

Air Canada said today that it will implement changes to its checked baggage policy on flights within Canada, and
between Canada and the U.S. including Hawaii, effective May 15, 2008 for travel on or after July 15, 2008.

"In an environment of record high and unrelenting fuel costs it is more critical than ever that the airline reviews its product offering to ensure it can continue to offer everyday low fares," said Duncan Dee, Executive

Vice-President, Customer Experience and Chief Administrative Officer. "This policy change is part of the on-going review of our activities that allow us to keep pace with current industry standards and economic realities, while remaining competitive with our main North American competitors."

There is no change in the checked bag policy for customers purchasing Latitude and Executive Class tickets. As well, Air Canada Elite, Super Elite and Prestige members in addition to Star Alliance Gold and Silver members maintain their current baggage allowance when purchasing Tango and Tango Plus fares. Baggage allowance for travel to and from countries other than Canada and the United States will remain unchanged. This includes North American flights as part of international travel. Complete details of Air Canada's baggage policies are available at aircanada.com.

Air Canada will continue to review its policies to determine what adjustments are to be made so that, against a backdrop of record high fuel costs, it continues to provide the products and services that respond to customer demand while offering every day low fares.

Montreal-based Air Canada provides scheduled and charter air transportation for passengers and cargo to more than 170 destinations on five continents. Canada's flag carrier is the 14th largest commercial airline in the world and serves 33 million customers annually with a fleet consisting of 335 aircraft. Air Canada is a founding member of Star Alliance, providing the world's most comprehensive air transportation network.