Canadian Airlines and Alitalia Offer Non-Stop to Milan.

TORONTO--(BUSINESS WIRE)--Feb. 16, 1999--Canadian Airlines (TSE:CA) (Alberta Stock Exchange:CA) (VSE:CA) and its codeshare partner Alitalia, Italy's national carrier, are pleased to announce a new service this summer that will connect Toronto to Milan, one of the major business capitals of the world, with five non-stop fights each week.

The service begins June 1, 1999, with booking available immediately.

Canadian will codeshare on Alitalia non-stop flights five days per week: Monday, Tuesday, Wednesday, Thursday and Saturday. -0-

         NON-STOP SERVICE FIVE DAYS A WEEK BEGINNING JUNE 1, 1999
         Milan to Toronto      Depart 10:30 am     Arrive 1:35 pm
         Toronto to Milan      Depart 4:55 pm      Arrive 6:55 am

"We are very pleased to offer this new destination to the business traveller, with a schedule which meets their needs. Milan is one of the top financial centres in Europe and this expanded alliance with Alitalia will help foster existing financial ties between Italy and Canada and generate new ones," said Steve Markey, Senior Vice-President, Corporate and Government Affairs.

"This announcement is the result of a commitment made by Canadian Airlines to study the development of air services between Canada and Milan as part of the Prime Minister's Mission to Italy in May of 1998. As was evidenced by the Mission, the growing business market in Northern Italy gives us confidence in moving forward with this service," he added.

"Our new service to Milan proves our continued commitment to the Canada-Italy market, while enabling Alitalia to offer superb service to Milan and convenient connections to points throughout southern Europe," says Martino Mainardi, Alitalia's General Manager for Canada. "This new service, offered with our codeshare partner Canadian Airlines, supports our strategic focus of making Malpensa our fortress hub."

Alitalia will fly travellers to Europe's new $1.4 billion intercontinental airlines hub, Malpensa Airport, northwest of Milan. As the country's financial and economic centre, the Milan area is home to the largest concentration of industry in Italy and is the world's leading centre for design and fashion - silk from Como, wool from Biella, gold from Vicenza, tile from Modena and cars by Ferrari, and Alfa Romeo. As well, service to Milan will give Canadian's customers access to Venice, Verona, Turin and other popular destinations in northern Italy, one of the fastest growing regions in the world.

Canadian currently serves the Milan market from Toronto with connections through Rome on Alitalia. This non-stop codeshare service to Milan strengthens Canadian's alliance with Alitalia, which began in 1995, and is a welcome new service for the business communities of Toronto, Montreal and Ottawa.

PHOTO NOTE: Canadian Airlines' 747-400 aircraft with new Proud Wings logo is available at Gate C29 at Pearson International Airport, Toronto February 17th, 8 a.m. for a 10:00 a.m. departure for Hong Kong via Vancouver.