OVERSEAS REGULATORY ANNOUNCEMENT

RNS Number : 6733S

Air China Ld

21 March 2016

 

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever 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:00753)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is published pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The attachment to this announcement is the following announcement of

Air China Limited published on the Shanghai Stock Exchange:

Announcement of Air China Limited Regarding an Update on the Settlement
With the Plaintiffs in the United States Cargo Antitrust Litigation Involving
the Company and its Subsidiary

By order of the board

Air China Limited

Rao Xinyu Tam Shuit Mui

Joint Company Secretaries

Beijing, the PRC, 18 March 2016

As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Ms. Wang Yinxiang, Mr. Cao Jianxiong, Mr. Feng Gang, Mr. John Robert Slosar, Mr. Ian Sai Cheung Shiu, Mr. Song Zhiyong, Mr. Fan Cheng, Mr. Pan Xiaojiang*, Mr. Simon To Chi Keung*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*.

* Independent non-executive Director of the Company

Securities Code：601111     Securities Abbreviation: Air China   No.：Provisional 2016-14

Announcement of Air China Limited Regarding an Update on the Settlement With the Plaintiffs in the United States Cargo Antitrust Litigation Involving the Company and its Subsidiary

The Company and all members of the Board ensure truthfulness, accuracy and completeness of the announcement and will be jointly and severally liable for any false records, misleading statements or material omissions of the announcement.

On 5 February 2016, Air China Limited (hereinafter referred to as "the Company") and Air China Cargo Co., Ltd. (hereinafter referred to as "Air China Cargo", a subsidiary of the Company) entered into a settlement agreement with the plaintiffs in the United States cargo antitrust Litigation (hereinafter referred to as the "Lawsuit"), as detailed in the Announcement of Air China Limited on the Signing of a Settlement Agreement with the Plaintiffs in the United States Cargo Antitrust Litigation Involving the Company and its Subsidiary issued by the Company on the website of Shanghai Stock Exchange (http://www.sse.com.cn/), China Securities Journal, Shanghai Securities Journal and Securities Daily on 6 February 2016. In accordance with the settlement agreement, the Company and Air China Cargo shall pay the settlement amount before 21 March 2016.

The underlying actions of the allegation by the plaintiffs in the Lawsuit took place during the period between 1 January 2000 and 30 September 2006. Whereas (i) in 2004, the Company and China National Aviation Holding Company (hereinafter referred to as "CNAH") and China National Aviation Corporation (Group) Limited (hereinafter referred to as "CNAC") entered into a restructuring agreement, pursuant to which the liability arising from the relevant operations before the completion of the restructuring thereunder shall be assumed by CNAH and CNAC with limited liability; and (ii) in 2010, the Company, Cathay Pacific China Cargo Holdings Limited, Fine Star Enterprises Corporation and Air China Cargo entered into a capital increase agreement with respect to the capital increase in Air China Cargo, pursuant to such agreement, any loss sustained by Air China Cargo in connection with the Lawsuit shall be indemnified by the Company. As such, 52.27% and 47.73% of the settlement amount and settlement costs in connection with the Lawsuit shall be borne by CNAH and the Company, respectively. The amount that CNAH is responsible for was paid to the Company on 18 March 2016, and on the same day the settlement amount of the Lawsuit was paid to the account designated by the plaintiffs by the Company.

To the extent that there is any subsequent additional amount to paid for the settlement of the Lawsuit in accordance with United States laws and regulations, such additional amounts shall be borne by CNAH and the Company in the aforementioned proportions.

It is hereby announced.

By Order of the Board

Rao Xinyu

Secretary of the Board

18 March, 2016, Beijing, China

 

END

 

 

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