Air China Regulatory News (AIRC)

30 Aug 2007 07:01

Air China Ld30 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 newspapersrecently stating that the Company did not exclude the possibility ofrestructuring with other domestic airline companies including China SouthernAirlines Company Limited, and after consultation with the management and thecontrolling shareholder of the Company, the Company would like to make thefollowing 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 andthat there is no discloseable information which has not been disclosed. The Company's designated newspapers for information disclosure are ChinaSecurities 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