CSRC Waiver

Air China Ld
21 August 2006

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents
of this announcement, makes no representation as to its accuracy or completeness
and expressly disclaims any liability whatsoever for any loss whatsoever arising
from or in reliance upon the whole or any part of the contents of this
announcement.


                             AIR CHINA LIMITED

(a joint stock limited company incorporated in the People's Republic of China
                          with limited liability)

                            (Stock Code: 753)

                               CSRC Waiver

Reference is made to the Company's announcement dated 31 July 2006, according
to which CNAHC, the controlling shareholder of the Company, has undertaken that
for the period commencing from the listing and trading of A Shares on Shanghai
Stock Exchange and up to 31 December 2006, CNAHC will, if the market price of A
Shares falls below the issue price of RMB2.80 per share, increase its
shareholding by acquiring shares through the secondary market at a price not
lower than the then market price of A Shares in accordance with relevant
regulatory requirements so as to restore the price of A Shares to the issue
price and subject to aggregate purchases by CNAHC not exceeding 600 million A
Shares.

On 17 August 2006, the CSRC granted a waiver to CNAHC such that the
abovementioned potential increase of shareholding not exceeding 600 million A
Shares will not result in an obligation of CNAHC to make a general offer for Air
China shares pursuant to the relevant PRC laws and regulations.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following terms
shall have the following meanings:

'A Shares'     The ordinary shares of RMB1.00 each issued by the Company
               and listed on the Shanghai Stock Exchange                
                                                                        
'CNAHC'        China National Aviation Holding Company, a company       
               incorporated under the laws of the People's Republic of  
               China which currently directly owns approximately 43.59% 
               of the Company's share capital as at the date of this    
               announcement                                             
                                                                        
'Company'      Air China Limited, a company incorporated in the People's
               Republic of China with primary listing on The Stock      
               Exchange of Hong Kong Limited and secondary listing on   
               the Official List of the UK Listing Authority            
                                                                        
'CSRC'         China Securities Regulatory Commission                   
                                                                        
'PRC'          the People's Republic of China, excluding, for the       
               purpose of this announcement only, Hong Kong, Macau and  
               Taiwan                                                   
                                                                        
'RMB'          Renminbi, the lawful currency of the PRC         

Beijing, 21 August 2006

                                           By order of the Board
                                           Air China Limited
                                           Zheng Baoan    Li Man Kit
                                           Joint Company Secretaries

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, 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