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AIR CANADA ANNOUNCES MAJOR EXPANSION
OF PASSENGER SERVICES TO CHINA

Air Canada announced plans for new passenger and shared cargo services:

On January 21, 2005, the People's Republic of China agreed to recognize Canada as an officially approved travel destination. Approved Destination Status (ADS) will allow Chinese residents to travel to Canada using a tourist exit visa. The World Tourism Organization estimates that, by 2020, there will be 100 million Chinese tourists annually.