Investor Presentaiton
-8-
Security Initiatives
Following the September 11, 2001 terrorist attacks, the Minister of Transport issued new air security measures,
including increased passenger and baggage screening and enhanced security procedures at check-in gates and on board
the aircraft. Other countries such as the United States and the United Kingdom have similarly imposed additional
security requirements. Air Canada's priority has been to ensure the safety and security of all passengers and crew
members on all flights. In response to these new measures, Air Canada reinforced the cockpit doors on all of its
mainline operating aircraft and requires passengers to produce valid identification prior to boarding all flights. In
December 2001, the Minister of Transport announced several security initiatives including a new Canadian Air
Transport Security Authority responsible for the provision of key air security services, an expanded program of armed
police on aircraft to cover selected domestic and international flights, and an air traveler's security charge. The air
traveler's security charge was introduced on April 1, 2002. The charges have been revised in subsequent federal
budgets. Since April 1, 2005, the maximum charge is $10 for domestic travel and $17 for transborder and international
travel.
In October 2002, the Canadian government implemented its Advance Passenger Information initiative to identify
potentially high risk individuals and address other border security issues. In March 2003, it also established a Passenger
Name Record program. Canadian and foreign carriers are now required by regulation to provide the Canada Border
Services Agency with specific personal information on all passengers and crew members on board international flights
destined to Canada at the time of departure, as well as to provide access to passenger name records in the carriers'
internal reservation systems. Foreign countries such as the United States, the United Kingdom, Australia, Mexico,
South Korea, China and countries that are members of the Caribbean Community and Common Market (CARICOM)
have enacted similar information requirements with respect to flights operating into and/or from their territory.
On May 6, 2004, Bill C-7, An Act to amend certain Acts of Canada in order to enhance public safety (known as
the Public Safety Act, 2002) received royal assent. The legislation amends certain provisions of the Aeronautics Act
(Canada) so as to further develop the scope and objectives of the existing national aviation security regime. The
amendments include requirements for Canadian carriers and foreign carriers operating into Canada to provide, upon
request, information concerning specified flights or persons to the Minister of Transport, the Royal Canadian Mounted
Police and the Canadian Security Intelligence Service for transportation security or national security purposes. These
amendments came into force on May 11, 2004.
Safety Initiatives
On June 15, 2005, the Minister of Transport announced regulatory amendments to further improve the safety
performance of Canadian air operators and increase accountability in the aviation sector through the implementation of
safety management systems. The goals of safety management systems are to increase industry accountability, to instill
a consistent and positive safety culture, and to help improve the safety performance of air operators. Amendments to
the Canadian Aviation Regulations require air operators to implement safety management systems in their
organizations and appoint executives who are accountable for safety. These amendments came into force on May 31,
2005. On April 27, 2006, Bill C-6, An Act to amend the Aeronautics Act and to make consequential amendments to
other Acts (Canada) ("Bill C-6"), was tabled for first reading in the House of Commons. On November 7, 2006, Bill C-
6 passed second reading and was referred to the Standing Committee on Transport, Infrastructure and Communities.
Bill C-6 seeks, among other things, to address integrated management systems and to authorize the establishment of
voluntary reporting programs under which information relating to aviation safety and security may be reported.
Management cannot predict if or when such proposed legislation will enter into force.
Air Canada is in the process of implementing its safety management systems in accordance with the recent
amendments to the Canadian Aviation Regulations. The President and Chief Executive Officer of Air Canada, Montie
Brewer, has been appointed as the executive currently accountable for Air Canada's safety management system.
Privacy
Air Canada is subject to applicable Canadian and foreign privacy laws regarding the collection, use, disclosure and
protection of passenger and employee data. Among other things, Canada's federal private sector privacy legislation, the
Personal Information Protection and Electronic Documents Act (Canada) (the "PIPEDA"), governs the collection, use
and disclosure of personal information in the course of commercial activities by a federally regulated business. In
addition, the PIPEDA regulates the handling of employee personal information by federally regulated employers. The
PIPEDA also applies to the collection or disclosure of personal information across provincial or Canadian internationalView entire presentation