Air Canada Change Fee Increase. Air Canada Executive Flight Pass

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1 Air Canada Change Fee Increase For tickets issued effective June 18, 2008, change fees* have been revised as follows: Tango Plus (S, A, L, Q, V, H, B ) : $50 Tango (T, E, P, G, N, K, R ) : $75 Sun markets: $75 for one way fares, $150 for round-trip fares Europe, Middle East, South America, Africa and South Pacific: $150 Air Canada Executive Flight Pass Air Canada is pleased to introduce Executive Class to North America Passes. For passengers who want to be confirmed in Executive Class at time of booking, this option combines the comfort of Air Canada's newly refurbished cabins with the perks of airport priority handling and access to Maple Leaf Lounges. With the exception of GST, and QST if applicable, these passes include all other taxes, fees, and surcharges. Unlimited Travel Passes: 3 or 6 month options Monthly subscription payment Complimentary advance seat selection, changes and cancellation Air Canada Super Elite Status with the 6 month option 20,000 Air Canada Status Miles with each monthly payment; accumulation is not based on distance flown $150 no show fee will be charged if not cancelled prior to departure Fixed 10 Credits: 12 month validity Single payment at time of purchase Complimentary advance seat selection, changes and cancellation 150% Air Canada Status Miles for distance flown Flight credit forfeits if not cancelled prior to departure

2 Pass Type 10 credits 3 month unlimited price per month 6 month unlimited price per month Rapidair $4,967 $3,968 $3,770 Western Commuter $4,467 $3,568 $3,390 Canada East $8,471 $6, 776 $6,437 Canada West $6,294 $5,032 $4,780 Canada East - West $13,576 $10,178 $9,669 Cross Canada $14,276 $10,703 $10,167 Eastern $9,771 $7,816 $7,425 Western $8,371 $6,696 $6,361 US Commuter $5,917 $4,728 $4,492 North America $14,876 $11,153 $10,595 Traveller must be an Aeroplan member residing in Canada. Activation of the Aeroplan membership may take up to 72 hours. Air Canada, TAM Sign Codeshare Agreement Air Canada and Brazilian carrier TAM have signed a Memorandum of Understanding for the implementation of a codeshare agreement and reciprocal frequent flyer mileage accumulation for members of the carriers loyalty programs, Aeroplan and TAM Fidelidade. The intent of the proposal is to offer increased services for customers travelling between Canada and Brazil, including seamless transfers and convenient connections to a variety of destinations served by the two airlines. The proposed agreement will allow TAM passengers to travel on Air Canada from Sao Paulo to Toronto, with connections to many destinations in Canada. Air Canada customers, in turn, will enjoy increased options for travelling to points throughout Brazil with convenient connections with its daily non-stop flights to Sao Paulo from Toronto. WestJet, Southwest Sign Codeshare Agreement WestJet has signed a memorandum of understanding to build a distribution and codeshare agreement with US-based Southwest Airlines. The memorandum of understanding is the first step that will see both airlines, by late 2009, have the ability to commence codeshare flights across both networks. In the near future, southwest.com will become a distribution channel for WestJet s existing Canadian and transborder flights. Other potential opportunities within the agreement include purchasing, ground handling, marketing and selling to corporate accounts and other areas of mutual gain. The airlines plan to introduce a distribution plan in 2008 with a codeshare agreement in place in late Certain details of the codeshare and elements of the partnering relationship are subject to approvals by both the US and Canadian governments.

3 US Airways Launches Daily Montreal-Charlotte Flights US Airways Group has launched daily non-stop service between Montreal and Charlotte. The flight will be operated by US Airways Express partner Republic Airlines using 86-seat Embraer 175 aircraft. The 2.5-hour flight to Charlotte departs at 8 a.m. The return flight to Montreal departs at 8 p.m. US Airways Cuts Movies on Domestic Flights US Airways says it will start removing in-flight entertainment systems on domestic flights in November to save about $10 million U.S. annually in fuel and other costs. Spokesman Phil Gee says the movie systems weigh about 500 pounds each, forcing planes to use more fuel to get around the country. Jet fuel costs have skyrocketed in recent years, slashing profits and leading to thousands of layoffs and flight cuts throughout the industry. Gee says US Airways will cut the movie systems from about 200 aircraft, but it will keep movies in its widebody aircraft for international flights and trips to Hawaii. US Airways says it will test a lighter, seat-back TV system later this year. However, Gee says a new entertainment system is a long way off. More on next page..

4 Checking in with New Airline Baggage Fee Policies These days keeping track of airline baggage policies can be difficult. Sometimes it helps to have all the information in one place as travel rules change from week to week. Here's the latest in airline baggage policies. In addition, the following chart is available by link: checked bag policies. (linked chart includes links to each airline's baggage policy section for the most up-to-date rules and fees as posted by the carrier). Airlines Applicable destinations Effective Date 1st bag 1 2nd bag 1 baggage/ Mishandled 1,000 passengers 2 Domestic 6/13/08 No Fee $ Domestic 7/01/2008 No Fee $ Mexico Latin America 5/12/2008 $15 $ /05/2008 No Fee $ Domestic 5/05/2008 No Fee $ International 6/10/2008 No Fee $ Domestic N/A No Fee No Fee 2.25 Domestic 6/01/2008 No Fee $ Domestic 5/24/2008 No Fee $20 N/A Domestic 5/05/2008 No Fee $ International 5/05/2008 No Fee $25 N/A Domestic 5/05/2008 No Fee $15 on/after 8/18 $ Domestic 7/01/2008 $15 on/after 7/09 $ Baggage policies apply each way for select flights. 2 Mishandled baggage data collected on domestic flights only by Air Travel Consumer Reports for The charge for a second checked bag will be $10 when paid using Online Check-In or $20 when paid at the airport kiosks and ticket counter

5 Cathay Alters Baggage Allowance Cathay Pacific has revised its baggage policy for Economy Class passengers between Canada and international destinations and Vancouver and New York. The airline is continuing to allow each passenger two checked bags, but has changed the weight limit from 32 kg to 23 kg per bag. The change affects tickets issued on or after July 21 and will mostly affect Economy Class passengers travelling Cathay Pacific and onward with sister airline Dragonair. Baggage weighing over 23 kg and up to 32 kg will be charged an added US$25 fee. Baggage exceeding 32 kg will face an excess baggage charge. Etihad to Codeshare with Jet Airways Etihad Airways is further expanding its global network with the signing of a new codeshare agreement with Indian carrier, Jet Airways. Under the deal, which comes into effect on July 1, the Abu Dhabi-based airline will place its two-letter EY code on all of Jet Airways daily services between its two hub airports, Delhi and Mumbai, and Etihad s own home base. In turn, Jet Airways will place its 9W code on the daily services operated by Etihad on the same routes. Etihad and Jet Airways have also signed a reciprocal agreement to link their respective frequent flyer programs. Emirates to Launch First Commercial A380 Service to America Air travelers will be able to experience Emirates Airline s state-of-the-art A380 aircraft for the first time on Aug. 1 when the airline launches its first A380 commercial service from New York JFK to Dubai. The 14-hour non-stop flight will also be the first-ever commercial A380 service to The Americas. Emirates A380 interiors and onboard product, which have been kept under wraps thus far, will be revealed for the first time when the airline receives its first A380 from Airbus Hamburg facility on July 28. Powered by Engine Alliance s GP7200 engines, Emirates A380s can fly up to 12,000 kms on a full passenger load and offer better fuel economy per passenger kilometer than most hybrid passenger cars. The A380 is also quieter, both inside and outside of the cabin. Should you have any questions please contact a member of our Management Team at : Lucy La Vigna, Director of Operations - lucyl@travelresources.net Selina Johnston, Manager, Client Services - selinaj@travelresources.net Don t want to receive the Travel Resources Industry Insider? Click here, and type UNSUBSCRIBE

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