Proceedings

IN THEMATTER OF THE SECURITIES ACT
R.S.O. 1990, c.S.5, ASAMENDED

AND

IN THE MATTER OF AIR CANADA

NOTICE OF HEARING
(Subsections 127(1) and 127.1)


TAKE NOTICE that the Ontario Securities Commission (the "Commission") will hold a hearing pursuant to subsections 127(1) and 127.1 of the Securities Act, R.S.O. 1990, c.S.5, as amended (the "Act") at the Commission offices, 20 Queen Street West, 17th Floor, in the Large Hearing Room, Toronto, Ontario commencing on the 27th day of July, 2001 at 9:30 a.m. or as soon thereafter as the hearing can be held;


AND TAKE NOTICE that the purpose of the Hearing will be for the Commission to consider whether to approve the proposed settlement of the proceeding entered into between Staff of the Commission ("Staff") and the respondent pursuant to Sections 127 and 127.1 of the Act, which approval will be sought by Staff and the Respondent;


AND TAKE NOTICE that the hearing will be held jointly with the Commission des valeurs mobilières du Québec, in accordance with Rule 8 of the Commission's Rules of Practice;


BY REASON OF the allegations set out in the Statement of Allegations of Staff and such additional allegations as counsel may advise and the Commission may permit;


AND TAKE FURTHER NOTICE that any party to the proceeding may be represented by counsel if that party attends or submits evidence at the hearing;


AND TAKE FURTHER NOTICE that upon the failure of any party to attend at the time and place aforesaid, the hearing may proceed in the absence of that party and such party is not entitled to any further notice of the proceeding.


DATED at Toronto this 25th day of July, 2001.
____________________________________

John Stevenson
Secretary to the Commission