News For Immediate Release August 9, 2006 PROVINCIAL AIRLINES Expands into Montreal St. John's St. John’s, NL --- Marshall Dean, Senior Vice President and Managing Director of Provincial Airlines (“PAL”) is pleased to announce that PAL is expanding into Quebec and increasing its services in Newfoundland and Labrador. Commenting on the new schedule, Dean noted that, “All of us at PAL are excited by our decision to extend PAL’s schedule service into Montreal while simultaneously enhancing our daily connections in Newfoundland and Labrador”. The expansion into Montreal will incorporate twice daily direct flights between Goose Bay, Wabush and a non-stop service between Sept Isle and Montreal. The expanded service through the Western Labrador - Montreal corridor will facilitate business and leisure connections to a growing Labrador market. “This enhancement of air service to Labrador is a reflection of our commitment to strengthening the regional transportation infrastructure necessary to support the growing mining and hydro-electric industries in western Labrador,” stated Gus Ollerhead, Chief Executive Officer of Provincial Airlines. The enhanced daily connection to Western Newfoundland and Labrador will feature a 5 pm direct non-stop flight from St. John’s to Goose Bay as well as enhanced full business day schedules between such markets as St. John’s and Goose Bay, Deer Lake and Wabush, St. John’s and Deer Lake. With 35 years in the aviation industry, Provincial Aerospace and its partner Innu Mikun Airlines operate scheduled passenger, air cargo services, and charter operations. With approximately 600 employees the privately owned company is one of the largest in the province. As well as its headquarters in St. John’s, which comprises four facilities, the company has operations in Nova Scotia, British Columbia and Quebec and stations at 14 airports across the country. It also maintains international bases in Barbados, Trinidad and Tobago, and the Netherlands Antilles and Aruba. Brian Chafe, Chief Operating Officer of Provincial Aerospace the parent company of Provincial Airlines, and President of Innu Mikun Airlines noted that, “as the largest independent regional carrier in Eastern Canada, PAL is fully committed to providing a superior level of service to Newfoundland, Labrador and now, Quebec.” Innu Mikun Airlines which is based in Goose Bay is a joint venture between Innu Economic Development and Provincial Airlines. The new services start September 8th. Highlights of the new services are attached. For further information contact: Brian Chafe Chief Operating Officer Provincial Aerospace Limited Email mediarelations@provair.com Tel (709) 576-1800 Fax (709) 576-7363