ACI International Air Service Program December 6, 2012 Washington DC 1 Hainan Airlines Overview

Fleet Codeshare and Interline Partners Service and Product Frequent Flyer Program Honors and Awards North American Operations HNA Group Overview Hainan Airlines Market Trends Going Forward – Challenges and Opportunities 2

Total Revenue : 100 Billion RMB (approx Billion USD) Employees: around : 110, Founding of Hainan Airlines 2011 Total Assets: 260 Billion RMB (approx Billion USD) Business Segments In HNA Group 2000 Founding of HNA Group HNA Group Overview 3

HNA Aviation Group Business Segments 4

Hainan Airlines— Fleet:115 Leading Airline in HNA Group, International and domestic trunk lines Capital Airlines— Fleet:25 Charter flight, regional combined trunk and feeder routes Deer Jet— Fleet:31 Business charter Flight Tianjin Airlines— Fleet:83 Regional combined trunk and feeder routes HNA Group Overview 5

Hong Kong Airlines— Fleet:22 Regional flights between Mainland China and Hong Kong Expanding International routes Hong Kong Express— Fleet:6 Charter flights between Hong Kong and Taiwan Regular flights to Southeast Asia Lucky Air— Fleet:17 Regional combined trunk and feeder Routes West Air— Fleet:9 Regional Airlines, operate feeder routes Yangtze River Express— Fleet:17 Cargo Transportation HNA Group Overview Beijing Capital Helicopter:5 Provide exclusive and customised helicopter tours Aigle Azur:12 Based in Orly Airport to operate regional and intl routes Hong Kong Corporate Jet:9 Business charter Flight based in HKG Africa World Airlines:2 Ghana LLC, operate regional routes ACT Air:4 Cargo Transportation in Turkey 6

7 Key Figures of Hainan Airlines Operating Revenue (billion, USD) Aircraft International Destinations2228 Domestic Destinations62 Passenger Carried (million) Load Factor81.8%87.6% ASK (billion) RASK(RMB)

13 countries, 19 destinations, 9 Operation Bases, 62 domestic destinations 478 city pairs 350 flights per day, 70 flights per day in PEK connect 50 cities

9 Operation Bases 62 domestic destinations 478 city pairs 350 flights per day 70 flights per day in PEK connect 50 cities 9

Seats NumberA/C Type 115 Total Note: Update to F8/C60Y219 3A F32/Y259 A F36Y185 6A F34/Y198 3B F8/Y155 B Y147 B F8/Y137 4B Y143 、 B

A/C TypeNumbers A A B78710 B Total68 Fleet Orders by

Airline Partners Hainan Airlines has 10 code-share partners and 112 interline partners.

Fortune Wings Club was launched in Currently 10 million members mainly based in China. Frequent Flyer Programs 13

Major airline partners Air Berlin, China Airlines…… Over 60 partners in eight different categories Airline, hotel, car rental, travel services, financial, telecom, entertainment etc. Frequent Flyer Programs 14

Complimentary ground transfers via Mercedes Benz limousines to and from Beijing Airport for First and Business class passengers. Exclusive transfer lounge for connecting passengers in Beijing. Air To Rail integrated booking service. VIP Lounges which combine business, entertainment, leisure and catering functions in Beijing, Haikou - Xian and Urumqi. 180 degree first and business class seats. Personal and thoughtful turndown service. Advanced in-flight entertainment system. Newly-introduced tableware perfectly integrates Chinese culture with HNA features. Improves special transportation service standards. “Care More” Five-star service for passengers traveling with pets. Designer Amenities. HNA Style Products & Services 15

Golden Eagle Cup, best safety record in Chinese airline industry, CAAC Passenger Satisfaction Award in ten consecutive years, CAAC & CCAA Best Airline in China in 2008, Global Traveler Top Prize for Safety Record in 2009, BCIA Skytrax 5 star Years 60 Brands in China,the only airline honored 2. SKYTRAX 4 star 1. SKYTRAX 5-STAR Airlines in 2011 & Won the “Best Airlines in China ”and “Excellent Service Award” Awarded by SKYTRAX for consecutive 3 years 3. Best Airline in China, Global Traveler – Twice 4. Best Airline in China 2012, Premier Traveler Honors and Awards 16

North American Operations Beijing - Seattle Service started with Airbus A330 four times a week June 9, 2008 Current schedule varies between 4 times a week to daily, depending on season. Beijing - Honolulu Beijing - Chicago Authorized to serve. 17

Market Trends Chinese are becoming world travelers. In 2011, 70 million Chinese traveled abroad and spent $69B By 2020, WTO predicts that China will be the world’s biggest destination AND source of visitors Chinese visitors to the US in 2011 totaled 1.1MM, up 36% from 2010, the highest increase of the top 25 countries, down from a 53% increase the year before. Most Chinese travel in large groups. 18

Market Trends In 2010, 3MM Americans visited China vs. 2.5MM in Forecast growth for Chinese visitors to US from is 274% according to the US Department of Commerce. US visa issuance has been simplified, time reduced By July 2012 US visas reached 1MM 19

Market Trends Chinese travel to the US exploded after ADS approval in As of 2011, China is the 9 th largest source of visitors to the US Flight POS ratio is shifting to China from the US. Average spend of Chinese visitors is Among the highest. 20

Market Trends Types of Travelers Pleasure Travel: 57% traveled on pleasure Business Travel: 25% VFR – Peaks in summer. Students 21

Business Travel China’s economy has slowed in lockstep with Europe’s woes. GDP growth has slowed in Q1-Q2 to 8.1%, 7.6% respectively Chinese authorities manage their economy through the global slowdown Domestic business travel is increasing faster than international. Key Points about Business Travel GBTA BTI™ Outlook - China. 22

Business Travel Chinese business travel will show strong growth over the next 6 quarters Key Points about Business Travel GBTA BTI™ Outlook - China. 23

Business Travel China’s business travel market is only second to the US and will exceed $200 billion in 2013 vs. $173 billion In 2012 Key Points about Business Travel GBTA BTI™ Outlook - China. 24

Business Travel Capacity at China’s four largest airports (PEK, PVG, SHA, CAN) has doubled in the past 10 years. Key Points about Business Travel GBTA BTI™ Outlook - China. Second and third tier airports have Also doubled or tripled in capacity. New airports being built in China (82 new, 101 enlarged ) 25

Going Forward US – China Aviation policy is still not “open skies” Challenges Slot / airport congestion problems in China and the US Limited air route availability (CAAC “non-compete” policy) Lack of TRWOV shifts some international traffic to Europe and other midpoints Aircraft / airport range / performance limitations / crew rest Fuel costs & pilot shortage 26

Going Forward Boeing predicts Chinese carriers will grow at an average annual rate of 8.9% over the next 20 years. Opportunities Secondary markets, CAAC policy changes? New aircraft Growth of Chinese traveling internationally and potential new visa agreement 27

Thank You ! 28