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Reviews on the past eight years

The Next Decade of Air China Mr. Kong Dong President, China National Aviation Holding Co. Chairman, Air China Limited Beijing 2010-05-12.

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Reviews on the past eight years

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  1. The Next Decade of Air ChinaMr. Kong DongPresident, China National Aviation Holding Co.Chairman, Air China Limited Beijing 2010-05-12

  2. After eight years’ development, Air China has successfully realized structural reform and industrial consolidation, together with Shandong Airlines, Air Macau,and Shenzhen Airlines making an air carrier group. Reviews on the past eight years 1

  3. On Operations, Air China improved both scale and efficiency, making a solid foundation for next decade development. Reviews on the past eight years 1 Unit: 100million ton km Unit: A/C Fleet Expansion Total Turnover Growth Unit: % Load Factor Growth 3

  4. On financial performances, Air China leads in the domestic aviation industry Reviews on the past eight years 1 • Air China’s Net Profit in 2003-2009 • (Unit: 100millon RMB) • World Top Ten Carriers in Market Capitalization • (As of 1st Dec. 2009, Unit: 100million Dollar) 4

  5. 2 Outlook On Air China’s Next Decade In the next decade, Air China’s strategic goal: To become a Top 30-50 large industrial group with global competitiveness To build a large world-class network carrier To build a high-quality Beijing Hub with strong global competitiveness 5

  6. In the next decade, Air China will take LH, AF-KLM, Delta as benchmark carrier, building itself to become a world-leading carrier. 2 Outlook On Air China’s Next Decade Strategy: large-scale, high quality and hub-spoke airline • Strategy: Automative, high-efficient comprehensive int’l hub 6

  7. Air China will build global network and supportive high-efficient fleet in ten years, competing with other int’l peers Complementary global and domestic route network 1 Fleet of over 886 aircraft 2 World Top Five in Passenger Volume 3 World Top Ten in Cargo Volume 4 2 Outlook On Air China’s Next Decade Air China’s strategy in 2020 AF-KLM Fleet in 2008: 574 A/C AA Fleet in 2008: 662 A/C

  8. Not benchmarking in scale, Air China will become a high-quality, int’l-branding and respectful flag carrier in 2020. 2 Outlook On Air China’s Next Decade leading safety operation Strong profit capability 5 1 Strong anti-risk capability 6 Over 75% in passenger Load factor 2 High value int’l brand reflection 7 Systematic and automatic management A/C Utilization ratio reached 11-12 hours 3 8 High-quality staff Reaching 4-star service 4 Document number 8

  9. Air China make all efforts to help building Beijing as a world-class comprehensive hub 2 Outlook On Air China’s Next Decade Till 2020, BCIA’s scale and efficiency will reach international level Passenger volume top 3 in the world Cargo volume top 8 in the world Int’l connecting passenger 50% On-time performance ratio 90%+ successful connection 90%+ ……

  10. A successful hub must be an example in intensive cooperation, and a collective work within many operating segments LH Hub Example Delta Hub Example LH in MUC T2 2 Outlook On Air China’s Next Decade Building Beijing hub cannot be achieved by Air China alone. Currently, we need BCIA to further improve in many fields so as to realize our common vision. Further optimization of connection procedure Systematic and automatic management of Slots Resolution of congested airspace and air corridor Immigration and customers’ restrictions in connections Effectively resolution to competitions Basic for comprehensive hubs Shortening MCT Improved punctuality Improved connection success

  11. In the next decade, Air China will make its own contributions to build China as a strong aviation nation, living up to its missions and leading positions. • High efficient airport support system • High efficient air control system • High efficient customers and immigrations……. Building an excellent hub To provide support and pratice in industrial standard management Upgrading whole industrial level • More comprehensive regulations and policies High value International Brand Building China as a strong aviation nation is airlines’ responsibilities, including Air China Building a competitive industrial sectors • Cargo sector with int’l competitiveness • Strong IT & Service sector • Strong MRO sector • Comprehensive Service & Support sector • Optimised industrial chain

  12. Thank You

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