Clarification Announcement

Air China Ld
30 August 2007



                               Air China Limited
   (a joint stock limited company incorporated in the People's Republic 
                        of China with limited liability)
                               (Stock Code: 753)

                           Clarification Announcement
                       (Overseas Regulatory Announcement)



In response to articles appearing in some domestic and overseas newspapers
recently stating that the Company did not exclude the possibility of
restructuring with other domestic airline companies including China Southern
Airlines Company Limited, and after consultation with the management and the
controlling shareholder of the Company, the Company would like to make the
following clarification:

As the State-owned Assets Supervision and Administration Commission of the 
State Council states in the 'Guiding Opinion for Promoting State-owned 
Capital Adjustment and Reorganization of State-owned Enterprises' that 
'the adjustment and reorganization of large-scale state-owned enterprises 
should be accelerated', given the increasing competition in the civil 
aviation industry, the Company believes there is possibility of 
restructuring of the civil aviation industry of China so as to expedite 
its development and enhance its competitiveness in the international 
market. During the promotion and introduction in Hong Kong of the 
Company's operating results, the management of the Company only 
expressed to the news media its concern over the restructuring of 
China's aviation industry and stated that it did not exclude the 
possibility of such restructuring, but did not identify any airline 
company that could be involved in such restructuring. Up to present, 
the Company has no plan to conduct any reorganization, mergers, 
acquisitions or asset injection with other airline companies, nor any 
related timetable or target.

As of the date of this announcement, the Company's operation is normal and
that there is no discloseable information which has not been disclosed.

The Company's designated newspapers for information disclosure are China
Securities Journal, Shanghai Securities Journal and Securities Daily. Only 
such information as disclosed in the announcement published in the above 
newspapers may be relied on. All investors are reminded to exercise 
caution when making their investment decision and beware of the risks 
associated with any investment.

                             By order of the Board
                                   Huang Bin
                                Board Secretary


Beijing, 29 August 2007

As at the date of this announcement, the Directors of the Company are Messrs 
Li Jiaxiang, Kong Dong, Wang Shixiang, Yao Weiting, Christopher Dale Pratt, 
Chen Nan Lok Philip, Ma Xulun, Cai Jianjiang, Fan Cheng, Hu Hung Lick, 
Henry*, Wu Zhipan*, Zhang Ke* and Jia Kang*.

*  Independent non-executive Director of the Company


                      This information is provided by RNS
            The company news service from the London Stock Exchange