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AIR CANADA AND AIR FRANCE CONCLUDE STRATEGIC ALLIANCE

 AIR CANADA AND AIR FRANCE CONCLUDE STRATEGIC ALLIANCE
 MONTREAL, Sept. 23 /PRNewswire/ -- Air Canada and Air France Group


have concluded a comprehensive strategic alliance that will take effect April 3, 1993, the carriers announced today. This new partnership will enhance both airlines' services between Canada and France, increase access to new markets and offer more options to travelers and cargo shippers.
 This European alliance will improve Air Canada's access via Paris- Charles de Gaulle Airport to the rest of Europe, Africa, the Middle East and Asia. Air France will benefit from enhanced access to points beyond Montreal, Toronto and Western Canada to the rest of the North American continent.
 Customers will benefit from a series of marketing improvements including close coordination of schedules, joint participation in the two airlines' frequent flyer programs as well as one-stop check-in providing on line boarding passes and advance seat selection. Cargo customers will also see significant benefits from coordinated handling of air freight between Air Canada and Air France.
 "Air France will be our partner in Europe. Its strength in the European market coupled with Air Canada's growing North American presence will make for a mutually profitable alliance. This agreement is a key component of Air Canada's international alliance strategy," said Hollis L. Harris, Air Canada's vice chairman, president and chief executive officer. The signing of this alliance follows the announcement last month of the launching of a commercial alliance with United Airlines, one of the largest air carriers in the United States. Concurrently, Air Canada is pursuing merger negotiations with Canadian Airlines International and the acquisitions of an equity stake in a restructured Continental Airlines of Houston.
 Air France's chairman and president, Bernard Attali, said: "Both carriers are strategically well positioned, with vast domestic and international networks. that would be further strengthened by the merger of Air Canada and Canadian Airlines International. We will complement each other very well and consumers will be first to benefit from our association."
 The agreement provides for the following:
 -- More flights between Montreal and Paris and Toronto and Paris.
 -- New scheduled services between Western Canada and France and between Western Canada and French Polynesia.
 -- Expanded choice of flights for each airline's customers through code sharing(A).
 -- Increased connection opportunities in Paris, Montreal, Toronto and Vancouver through coordinated schedules.
 -- Easier check-in and connecting services through advance seat selection and through the issuance of flight boarding passes at the initial point of departure.
 -- Joint cargo programs.
 -- Joint promotions and advertising to the consumer and travel trade, and tour program offerings.
 Air France Group's Revenues amounted to C$14 billion in 1991, compared to Air Canada's C$3.6 billion. Air France serves a total of 224 airports in 106 counties on five continents. Air Canada serves a total of 117 airports in 21 countries via its international, domestic and commuter networks.
 (A) -- Subject to government approval.
 -0- 9/23/92
 /CONTACT: Denis Couture of Air Canada, 514-422-5921, or Bruce Haxthausen of Air France, 212-830-4482/ CO: Air Canada; Air France ST: Quebec IN: AIR SU:


AH-TS -- NY034 -- 2570 09/23/92 11:03 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Sep 23, 1992
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