TMX group

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN 
THE UNITED STATES/

MONTREAL, Feb. 27 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE) (ACE.B
and ACE.RV) and Jazz Air Income Fund (the Fund) (JAZ.UN) today announced that
the Fund has issued an additional 1.5 million units pursuant to the exercise
of the over-allotment option granted to the Underwriters in conjunction with
the Fund's initial public offering at a price of $10.00 per unit. The closing
of the underwriters' option was held today.
The gross proceeds of $15 million from the exercise of the over-allotment
option bring the aggregate gross proceeds of the initial public offering of
the Fund to $250 million. The net proceeds from the exercise of the over-
allotment option in the amount of approximately $14.2 million will be used by
ACE for general corporate purposes.
With the exercise of the over-allotment option, ACE holds a 79.7 %
interest in Jazz Air LP. The Fund holds the balance of 20.3 %.
The offering was underwritten by a syndicate with CIBC World Markets and
RBC Capital Markets acting as joint bookrunners.
The securities offered have not been, and will not be, registered under
the United States Securities Act of 1933, as amended, and may not be offered
or sold in the United States absent registration or any applicable exemption
from the registration requirement of such Act.

This press release does not constitute an offer to sell or the
solicitation of any offer to buy nor will there be any sale of these
securities in any province, state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such province, state or jurisdiction.

The statements made in this release concerning future prospects are
forward-looking statements that involve risks and uncertainties, which may
prevent expected future results from being achieved. All dollar amounts in
this release are in Canadian dollars. For those statements, we claim the
protection of the safe harbour for forward-looking statements contained in the
securities laws. ACE, the Fund and Jazz Air LP caution that actual future
performance could be affected by a number of factors, many of which are beyond
the control of ACE, the Fund and Jazz Air LP. Therefore, future events and
results may vary substantially from what ACE, the Fund and Jazz Air LP
currently foresee. Additional information identifying risks and uncertainties
is contained in the amended and restated preliminary prospectus of the Fund
and in ACE's 2005 Management's Discussion and Analysis (MD&A) and in other
filings with securities commissions in Canada and the United States.
%SEDAR: 00020954EF