Short-Term Commercial Paper

Air China Ld
26 May 2005


                               AIR CHINA LIMITED

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

                               (Stock Code: 753)

                      SHORT-TERM COMMERCIAL PAPER PROGRAM

The Company hereby announces that on 25 May 2005 it received a confirmation from
the People's Bank of China on a short-term commercial paper issuance program of
the Company (the 'Program'), pursuant to which the Company may issue short-term
commercial paper in mainland China to institutional investors of up to an
aggregate amount RMB2 billion upon the receipt of the above confirmation.
Pursuant to the Program, the Company is now in the process of issuing short-term
commercial paper in an amount of RMB2 billion. The Company intends to use the
proceeds from the above issuance for its working capital.

                             By order of the Board
                               Air China Limited
                              Fan ChengLi Man Kit
                           Joint Company Secretaries

Beijing, 25 May 2005

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

* Independent Non-executive Directors of the Company


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