19 May 2005

AIR CHINA AND CATHAY PACIFIC SIGN CODE-SHARE AND

MARKETING MEMORANDUM

Air China Limited (hereinafter “Air China”) and Cathay Pacific Airways today further cemented their partnership by jointly signing a memorandum of understanding to promote sales and marketing initiatives between the two airlines that includes a new code-sharing arrangement on flights between Hong Kong and Beijing.

The memorandum was signed in Beijing by Air China Executive Vice President Cai Jianjiang and Cathay Pacific Chief Executive Philip Chen. Cathay Pacific acquired a 10 percent strategic shareholding in Air China at its initial public offering last year in Hong Kong. This was followed by regular meetings between teams from both sides to explore cooperation on various business areas.

Air China will code-share on two Cathay Pacific services from Beijing to Hong Kong – one of which operates daily and the other three times a week. Cathay Pacific will attach its code to three of the daily Air China services to and from Beijing. Code-share operations should commence in the fourth quarter of this year.

Both Air China and Cathay Pacific believe that by working together, the two airlines   will offer an even more attractive proposition to customers, with more services between Hong Kong and Beijing and more timely connections through the Hong Kong hub to and from other destinations.

(Photographs on P.2)

Ms. Rao Xinyu   General Manager, Investor Relations 

(86) 6458 2211, (86) 8447 5430, (86) 139 1039 1619

Ms. Zhang Chunzhi , Deputy General Manager, Department of Marketing & Sales

(86) 6463 4654

Carolyn Leung, Corp Comm Mgr, Public Affairs, (852) 2747-5393 or 7901 5393 or 6053-6066

Elsa Leung, Corp Comm Mgr, Product, (852) 2747-8282

The Air China Website can be found at www.airchina.com.cn

The Cathay Pacific Website can be found at www.cathaypacific.com

Photo Caption:

Air China Executive Vice President Cai Jianjiang (L) and

Cathay Pacific Chief Executive Philip Chen (R) signed a memorandum of understanding to promote sales and marketing initiatives.