TORONTO – Porter Airlines Inc. (“Porter”) announced today that Jazz Air LP (“Jazz”) has withdrawn its claim for damages against Porter and certain of its affiliates.

In February 2006, Jazz had commenced a claim in the Ontario Superior Court of Justice seeking damages in excess of $10 million for, among other things, an alleged conspiracy and breach of the Competition Act. In its Statement of Claim, Jazz made wide ranging allegations of unlawful activity and bad faith, all of which have now been withdrawn by Jazz. Jazz is also responsible for the litigation costs that Porter incurred in having to respond to these claims.

Porter is still maintaining its counterclaim in the action against Jazz and Air Canada for damages of $850 million and a declaration that the Capacity Purchase Agreement between Jazz and Air Canada is unlawful.

“The litigation by Jazz was entirely without merit and a heavy-handed attempt to overwhelm Porter when it was just starting up,” said Robert Deluce, president and CEO of Porter Airlines.

“Now that Porter is an established success, there was no purpose for Jazz to pursue these baseless claims. We are pleased with this victory and happy to put an end to this frivolous litigation.”