days until our Collective Agreement expires, we are preparing, we are united and we will make change.

APPENDIX XVII

RE: Vacation Accrual Transition, Third Vacation Split and Bid

December 9, 2002

Pamela Sachs
President
CUPE, Air Canada Component
180 Atwell Drive, Suite 600
Toronto, ON

Dear Ms. Sachs;

RE: Vacation Accrual Transition, Third Vacation Split and Bid

The Company agrees that for the duration of the vacation accrual transition period, cabin personnel will be permitted a third split during which they may take their vacation entitlement. During this period, the Company will provide a third vacation bid to accommodate the additional vacation split.

Yours truly,

Kevin Howlett
Vice President, Labour Relations

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