PURCHASE OF 24 AIRBUS

Air China Ld
04 July 2006



THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ACTION


If you are in any doubt as to any aspect of this circular, you should consult a
stockbroker or other registered dealer in securities, bank manager, solicitor,
professional accountant or other professional  adviser.


If you have sold or transferred all your shares of Air China Limited, you should
at once hand this circular to the purchaser or transferee or to the bank,
stockbroker or other agent through whom  the  sale  or  transfer  was  effected
for  transmission  to  the  purchaser  or  the  transferee.


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



                         AIR CHINA LIMITED

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

                                                               (Stock Code: 753)




                       PURCHASE  OF 24 AIRBUS  320-SERIES
                           AIRCRAFT MAJOR TRANSACTION


                                                                   4  July  2006


                                    CONTENTS


                                                                      Page

DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . .        1


LETTER FROM  THE  BOARD



1.     Introduction   . . . . . . . . . . . . . . . . . . . . . .        4


2.     The Airbus Aircraft  Purchase Agreement . . . . . . .  . .        5


3.     Effect  of Transaction   . . . . . . . . . . . . . . . . .        7


4.     Financial  and  Operational  Prospects  . . . . . . . . . .       7


5.     Working  Capital   . . . . . . . . . . . . . . . . . . . .        8


6.     Additional  Information  . . . . . . . . . . . . . . . . .        8



APPENDIX  I     -     FINANCIAL  INFORMATION  OF  THE  GROUP . . .       9


APPENDIX  II    -     GENERAL  INFORMATION . . . . . . . . . . . .      90




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related to this announcement: 

http://www.rns-pdf.londonstockexchange.com/rns/5560f_-2006-7-3.pdf



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

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