Attention Business/Financial Editors:

ACE Aviation Holdings Inc. announces Court approval of plan of arrangement

    MONTREAL, Oct. 6 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE)
announced today that the Québec Superior Court has issued a final order
approving a statutory arrangement under the Canada Business Corporations Act.
The arrangement also received prior approval from ACE's shareholders at a
special meeting of shareholders held on October 5, 2006. The arrangement
grants authority to the board of directors of ACE to make from time to time
one or more special distributions to shareholders in an aggregate amount of up
to $2 billion by way of reduction of the stated capital of the Class A
variable voting shares, Class B voting shares and the preferred shares of ACE.
ACE expects the arrangement to become effective on or about October 10, 2006.
    ACE previously announced its intention to proceed with an initial
distribution of units of Aeroplan Income Fund under the plan of arrangement
representing a portion of its interest in Aeroplan. The initial distribution
is subject to the prior receipt of an advance income tax ruling or opinion
from the Canada Revenue Agency confirming that the distribution will be
treated as a return of capital. It is anticipated that the initial
distribution will be completed by the end of 2006. The remaining terms of the
initial distribution, including the number of Aeroplan units to be
distributed, the record date to determine the ACE shareholders eligible to
participate in such distribution and the anticipated payment date will be
announced by subsequent news release after receipt of the tax ruling or
opinion.
    Due to restrictions applicable to Aeroplan Income Fund pursuant to United
States securities legislation, U.S. shareholders will receive Aeroplan units
only if they complete and submit a certification attesting that they are
"qualified purchasers" for the purposes of the United States Investment
Company Act of 1940 and institutional "accredited investors" for the purposes
of Rules 501(a)(1), (2), (3), or (7) of Regulation D under the United States
Securities Act of 1933. A form of certification will be sent to U.S.
shareholders concurrently with the news release announcing the remaining terms
of the initial distribution. U.S. shareholders that do not satisfy such
requirements or that do not submit a properly completed certification on or
prior to a date to be specified in the news release will receive the net cash
proceeds of the sale on their behalf of the Aeroplan units which such
shareholders would otherwise have been entitled to receive.

    CAUTION REGARDING FORWARD-LOOKING INFORMATION
    ---------------------------------------------

    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 ACE. 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 completion of the initial distribution
of Aeroplan units under the plan of arrangement described in this news release
is conditional upon the receipt of an advance income tax ruling or opinion
confirming that the initial distribution of Aeroplan units will be treated as
a return of capital. The forward-looking statements contained herein represent
ACE's expectations as of the date they are made and are subject to change
after such date. However, ACE 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.
    %SEDAR: 00020954EF          %CIK: 0001295721