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Investor Presentaiton

- 24- Turboprop aircraft continue to serve certain segments of the Canadian domestic market more efficiently than regional or larger jet aircraft. On short-haul routes with lower traffic volumes, turboprops often present the most economical and efficient way to serve these markets. Compared to larger jet aircraft, the turboprop is more profitable to operate on shorter routes with low levels of passenger demand due to its generally lower break-even load requirements. Current and Planned Operating Fleet Air Canada's operating fleet as at December 31, 2006 and the planned operating fleets for 2007 to 2008 are shown below: Number of Operating Aircraft as at December 31, Planned Operating Aircraft as at December 31, Planned Operating Aircraft as at December 31, 2006 2007 2008 Planned Operating Aircraft based on Future Committed Aircraft net of Projected Aircraft Removals (5) Widebody Aircraft Airbus A340-300.. Airbus A340-500 Airbus A330-300.. 10 2 8 Boeing 767-300 ER... 33 Boeing 767-200/200ER. 11 Boeing 777-200LR). 0 Boeing 777-300ER (1) (2) 0 Boeing 787(1) 0 Total Widebody Aircraft 64 52822350 y 29 25 9 11 14 64 64 70 1283263 028286106 Narrowbody Aircraft Airbus A321 10 10 10 10 Airbus A320 47 42 42 42 Airbus A319. 45 35 35 35 Embraer ERJ-190(3) 18 43 45 45 Embraer ERJ-175 15 15 15 15 Total Narrowbody Aircraft. 135 135 147 147 Total Operating Aircraft (4) 199 209 211 217 (1) The following aircraft are scheduled to be delivered after 2008: two Boeing 777 are scheduled to be delivered in 2009 and 14 Boeing 787 are scheduled to be delivered in 2010 and 2011. In December 2006 and February 2007, Air Canada exercised its conversion rights to convert two Boeing 777-200F aircraft into two Boeing 777 passenger aircraft, the model of which have yet to be confirmed. (2) Air Canada has entered into a 10-year lease agreement with ILFC for one Boeing 777-300ER aircraft, which is scheduled to be delivered in May 2007. (3) The deliveries of 45 Embraer ERJ-190 aircraft are scheduled to be completed by January 2008. (4) In addition to operating aircraft, as at December 31, 2006, Air Canada had 11 widebody aircraft and 20 narrowbody aircraft that were parked. (5) These aircraft changes are expected to be completed by 2011.
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