Canadian Airlines - Share Ownership Reservation System.

CALGARY, ALBERTA--(BUSINESS WIRE)--July 16, 1998-- Canadian(TSE:CA.) (Alberta Stock Exchange:CA.) (VSE:CA.) Further to Section 55 of the Canada Transportation Act, Canadian Airlines Corporation has procedures in place to monitor the Canadian ownership level of common shares. On January 31, 1997 it came to our attention that the non-Canadian ownership level was approaching 25 per cent. As a result, a reservation system was implemented on February 3, 1997, to further monitor ownership levels.

As of July 15, 1998, there were 245,900 common shares available for purchase by non-Canadians. This quota is updated on the first and the fifteenth of each month (or the closest business day) for as long as the reservation system remains in place.

In order for the transfer of common shares to non-Canadians to be processed, an application form must be completed through CIBC Mellon Trust Company. Application forms and a copy of the procedures can be acquired by contacting Rick Kutryk at CIBC Mellon TrustCompany who can be reached by telephone at [phone]. In addition, a dedicated fax line [phone] has been secured to operate this procedure.

Please be advised that non-Canadians can still purchase non-voting shares of Canadian Airlines Corporation.

   CONTACT: Canadian Airlines Corporation
             Tim McNulty, 403/ 294-6206
             http://www.cdnair.ca