ACE Aviation announces a distribution of units of Jazz Air Income Fund to its shareholders

    HALIFAX, May 11 /CNW/ - ACE Aviation Holdings Inc. (ACE) announced today
the terms of a special distribution of an aggregate of 12,000,000 units of
Jazz Air Income Fund (TSX: JAZ.UN) to ACE's shareholders pursuant to a
statutory plan of arrangement approved in October 2006.
    Immediately following the special distribution to ACE's shareholders, ACE
will retain 60,226,920 units of Jazz Air Income Fund, representing 49.0% of
the 122,865,143 units issued and outstanding.


    Certain statements in this news release may contain forward-looking
statements. These forward-looking statements are identified by the use of
terms and phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will", "would", and
similar terms and phrases, including references to assumptions. Such
statements may involve but are not limited to comments with respect to
strategies, expectations, planned operations or future actions.
Forward-looking statements, by their nature, are based on assumptions and are
subject to important risks and uncertainties. Any forecasts or forward-looking
predictions or statements cannot be relied upon due to, amongst other things,
changing external events, general uncertainties of the business and matters
that are not within the control of Jazz. Such statements involve known and
unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements to differ materially from those expressed
in the forward-looking statements. The forward-looking statements contained
herein represent Jazz's expectations as of the date they are made and are
subject to change after such date. However, Jazz disclaims any intention or
obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as required
under applicable securities regulations.

    About Jazz Air Income Fund

    Jazz Air Income Fund is an unincorporated, open-ended trust established
under the laws of the Province of Ontario, created to indirectly acquire and
hold an interest in the outstanding limited partnership units of Jazz Air LP.

    About Jazz Air LP

    Jazz Air LP (Air Canada Jazz) is the second largest airline in Canada
based on fleet size and the number of routes operated. Air Canada Jazz
operates more flights and flies to more Canadian destinations than any other
Canadian carrier.
    Air Canada Jazz forms an integral part of Air Canada's domestic and
transborder market presence and strategy. Air Canada Jazz and Air Canada are
parties to a Capacity Purchase Agreement (CPA) pursuant to which Air Canada
currently purchases substantially all of Air Canada Jazz's fleet capacity
based on predetermined rates.
    Air Canada Jazz provides all crews, airframe maintenance and, in some
cases, airport operations. In turn, Air Canada determines routes and controls
scheduling, ticket prices, product distribution, seat inventories, marketing
and advertising for these flights. Air Canada Jazz is not a typical airline.
Currently, over 99% of Air Canada Jazz's revenues are derived from the CPA.
Air Canada Jazz is isolated from most of the risks typically associated with
airlines such as fuel and navigation costs since these costs are passed
through to Air Canada.
    Under the CPA with Air Canada, Air Canada Jazz provides service to and
from lower density markets as well as higher density markets at off-peak times
throughout Canada and to and from certain destinations in the United States.
As of May 1, 2007, Air Canada Jazz operated scheduled passenger service on
behalf of Air Canada with approximately 827 departures per weekday to
56 destinations in Canada and 28 destinations in the United States with a
fleet of 135 aircraft.
    Air Canada Jazz is the focal point of Air Canada's regional passenger
strategy. Air Canada Jazz and Air Canada have linked their regional and
mainline networks in order to serve connecting passengers more efficiently and
to provide valuable feed traffic to Air Canada's mainline routes.