23 May 2005

FOR IMMEDIATE RELEASE

AIR CHINA AND CATHAY PACIFIC ANNOUNCE

FREQUENT FLYER PROGRAMME PARTNERSHIP

Air China Limited (hereinafter “Air China”) and Cathay Pacific Airways today announced that members of their frequent flyer programmes will be able to accrue and redeem miles on flights operated by both carriers as part of a closer strategic partnership between the two airlines.

As part of the memorandum recently signed in Beijing by Air China Executive Vice President Cai Jianjiang and Cathay Pacific Chief Executive Philip Chen, Air China’s Air China Companion members will be able to earn and redeem miles when flying on Cathay Pacific-operated services world-wide. Cathay Pacific’s Asia Miles members will be able to do the same when flying with Air China to destinations in the Chinese Mainland and overseas. The co-operation will come into effect in the third quarter of this year.

As well as being able to redeem free airline tickets, miles from both programmes can be used to obtain a wide range of other rewards.

The Air China Companion programme has more than 2.4 million members holding Silver, Gold and Platinum Companion cards. The programme is partnered with a number of airlines, luxury hotel groups such as Marriott, InterContinental and Mandarin Oriental, as well as with telecommunication and car rental companies. It also offers a co-branded Air China Companion credit card with a number of banks.

Asia Miles has more than 240 partners in 9 categories. They include airlines, finance and insurance, hotels, telecommunications, cars and transport, retail, dining, travel and leisure and health and beauty.

Cathay Pacific and Air China’s co-operation on frequent flyer programmes offers a wider choice of rewards across a greater number of categories to customers of both airlines. This will strengthen both Air China and Cathay Pacific as preferred carriers and benefit them in their respective home bases.

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

Maria Yu, Corp Comm Mgr, Media Relations, (852) 2747-5363 or 7901-5368 or 9156-8431

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

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