1. 1 The Next Decade of Air China Mr. Kong Dong President, China National Aviation Holding Co. Chairman, Air China Limited Beijing 2010-05-12

2. After eight years development, Air China has successfully realized structural reform and industrial consolidation, together with Shandong Airlines, Air Macau,and Shenzhen Airlines making an air carrier group. 1 Reviews on the past eight years

3. On Operations, Air China improved both scale and efficiency, making a solid foundation for next decade development. 3 Fleet Expansion Total Turnover Growth Unit: A/C Unit: 100million ton km Load Factor Growth Unit: % 1 Reviews on the past eight years

4. On financial performances, Air China leads in the domestic aviation industry 4 World Top Ten Carriers in Market Capitalization (As of 1 st Dec. 2009, Unit: 100million Dollar) Air Chinas Net Profit in 2003-2009 (Unit: 100millon RMB) Reviews on the past eight years 1

5. 5 In the next decade, Air Chinas strategic goal: 2 Outlook On Air Chinas Next Decade To become a Top 30-50 large industrial group with global competitiveness To build a large world-class network carrier To build a high-quality Beijing Hub with strong global competitiveness

6. In the next decade, Air China will take LH, AF-KLM, Delta as benchmark carrier, building itself to become a world-leading carrier. 6 Strategy: Automative, high-efficient comprehensive intl hubStrategy: large-scale, high quality and hub-spoke airline 2 Outlook On Air Chinas Next Decade

7. Air China will build global network and supportive high-efficient fleet in ten years, competing with other intl peers AF-KLM Fleet in 2008: 574 A/C AA Fleet in 2008: 662 A/C Air Chinas strategy in 2020 1 Fleet of over 886 aircraft 2 Complementary global and domestic route network 3 World Top Five in Passenger Volume 4 World Top Ten in Cargo Volume Outlook On Air Chinas Next Decade 2

8. Document number 8 Not benchmarking in scale, Air China will become a high-quality, intl- branding and respectful flag carrier in 2020. Strong anti-risk capability High value intl brand reflection Strong profit capability Reaching 4-star service A/C Utilization ratio reached 11-12 hours High-quality staff leading safety operation Over 75% in passenger Load factor 1 2 3 4 5 6 7 8 Systematic and automatic management 2 Outlook On Air Chinas Next Decade

9. Air China make all efforts to help building Beijing as a world-class comprehensive hub Till 2020, BCIAs scale and efficiency will reach international level Passenger volume top 3 in the world Cargo volume top 8 in the world Intl connecting passenger 50% On-time performance ratio 90%+ successful connection 90%+ …… Outlook On Air Chinas Next Decade 2

10. A successful hub must be an example in intensive cooperation, and a collective work within many operating segments LH Hub Example LH in MUC T2 Delta Hub Example Building Beijing hub cannot be achieved by Air China alone. Currently, we need BCIA to further improve in many fields so as to realize our common vision. Further optimization of connection procedure Systematic and automatic management of Slots Resolution of congested airspace and air corridor Immigration and customers restrictions in connections Effectively resolution to competitions Shortening MCT Improved punctuality Improved connection success Basic for comprehensive hubs 2 Outlook On Air Chinas Next Decade

11. In the next decade, Air China will make its own contributions to build China as a strong aviation nation, living up to its missions and leading positions. Cargo sector with intl competitiveness Strong IT & Service sector Strong MRO sector Comprehensive Service & Support sector Optimised industrial chain High efficient airport support system High efficient air control system High efficient customers and immigrations ……. More comprehensive regulations and policies High value International Brand Building China as a strong aviation nation is airlines responsibilities, including Air China Building an excellent hub Building a competitive industrial sectors Upgrading whole industrial level To provide support and pratice in industrial standard management

12. Thank You