Air Canada and ITA Software today announced that they have signed an agreement to develop a new reservation management system for the airline. Air Canada’s new airline reservation management system is being developed in collaboration with ITA Software, known for its creative use of modern technology to replace legacy systems with innovative solutions. Air Canada’s next generation reservation system will include reservations, inventory control and seat availability, and check-in and airport operations modules.

“Today’s announcement is an important step towards providing our employees with new tools that deliver Air Canada’s simplified, value-added products and services more efficiently for our customers,” said Sean Menke, Air Canada’s Executive Vice President and Chief Commercial Officer. “The power of this core management system will be a key instrument in Air Canada’s strategy to maintain market leadership through product and customer service differentiation. Moreover, it will provide unprecedented flexibility and significant cost savings.”

The ITA Software reservation system will support Air Canada’s innovative products, services and business process simplification, and will provide for improved customer experience. The complete solution will be deployed beginning in late 2007 across the entire Air Canada network, including reservation call centers and airport locations world wide. The reservation system will be delivered as an application hosted by ITA Software and will simultaneously support the airline’s ongoing participation in the Star Alliance.

“We are very excited by the opportunity to join with Air Canada in developing a modern airline reservation management system that meets the changing needs of the world’s largest airlines,” said Jeremy Wertheimer, ITA Software’s President and CEO. “This next generation reservation system will mark an end to airlines’ reliance on legacy systems and processes and the merchandising limitations that result from these archaic technologies.”

About Air Canada Montréal-based Air Canada, a subsidiary of ACE Aviation Holdings Inc., provides scheduled and charter air transportation for passengers and cargo to more than 150 destinations on five continents. Canada's flag carrier is the 14th largest commercial airline in the world and serves more than 30 million customers annually. Air Canada is a founding member of Star Alliance providing the world's most comprehensive air transportation network

About ITA Software ITA Software (www.itasoftware.com) is a leading provider of innovative airline IT and services. The company provides airlines and travel distribution companies with comprehensive, reliable and cost-effective technology. ITA Software’s customers include leading travel companies such as Air Canada, Alaska Airlines, Alitalia, Continental Airlines, US Airways, Star Alliance, Galileo International, Kayak, Orbitz and others. The company is based in Cambridge, Massachusetts with offices in Chicago and Singapore. ITA Software was founded by computer scientists from the Massachusetts Institute of Technology.