Canadian Airlines Corporation Ownership of Shares.

CALGARY, Alberta--(BUSINESS WIRE)--May 3, 1999--

Canadian Airlines Corp. (TSE:CA.)(Alberta Stock Exchange:CA.) (VSE:CA.) Section 55 of the Canada Transportation Act limits the level of ownership by non-Canadians of an airline licensed in Canada to 25 per cent of total voting shares. Canadian Airlines Corporation has procedures in place to monitor the Canadian ownership level of its common shares.

As of May 3, 1999, there were 2,087 voting common shares available for purchase by non-Canadians.

In the event that the 25 per cent ownership level is surpassed, non-Canadians will no longer be eligible to purchase Canadian Airlines Corporation voting common shares (CA) from Canadian shareholders. Non-Canadian investors are eligible to purchase voting common shares when the level of non-Canadian ownership is within the 25 per cent limit, or from other non-Canadians. The sale of voting common shares by non-Canadian shareholders will not be restricted and non-voting common shares (CA.A) will continue to be available for purchase by non-Canadian investors.

Canadian Airlines will continue to advise of this quota 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 Trust Company who can be reached at 403/232-2413. In addition, a dedicated fax line 403/262-4522 has been secured to operate this procedure.

Common shares of Canadian Airlines Corporation are listed for trading on the Toronto, Alberta and Vancouver Stock Exchanges. Non- voting common shares of Canadian Airlines Corporation are listed for trading on the Toronto Stock Exchange.