During German Chancellor Dr Angela Merkel’s state visit to China, Song
Zhiyong, President & Executive Director of Air China Limited and Carsten Spohr,
Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, signed a
memorandum of understanding in Beijing to expand the scope of the strategic
partnership between their companies.

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Song Zhiyong, President & Executive Director of Air China Limited and
Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa
AG, signed a memorandum of understanding on a passenger joint venture
cooperation to enhance the strategic partnership, during the Chancellor’s visit
to China.

President Song Zhiyong said at the signing of the memorandum of
understanding on 7 July in Beijing, "Air China’s endeavour to become a global
network carrier will not be successful without alliance and cooperation with
our partners. The future joint venture cooperation with Lufthansa will
facilitate Air China’s efforts in expanding international route network while
enabling us to achieve win-win results and provide more travel choices and
convenience to our passengers."

"We are delighted that, together with Air China, we will be able to offer
our customers, particularly those in Europe and China, even better flight
connections and services in the future," said Mr. Carsten Spohr. "Thanks to
strategic partnerships with leading airlines, the Lufthansa Group airlines now
connect the world’s four largest economies even better."

In the summer season of 2014, Air China and Lufthansa have a joint capacity
input of 81 flights per week on the Sino-German routes. As of today, Air China
and Lufthansa have been codesharing on all their flights between China and
Germany. Meanwhile, with the domestic and third-country codeshare, Air China
and Lufthansa are able to expand network access to 9 points in China and
Germany respectively as well as destinations in Zurich, Spain and Brazil, etc.
This new joint venture with Lufthansa will also offer customers of both
airlines a product range that is more varied and can be combined more flexibly.
This provides additional travel options and flight connections. The new
partnership agreement should come into force in two phases as early as the
start of the winter flight timetable in late October 2014. Both companies also
signed a memorandum of understanding to expand collaboration in the area of
maintenance, repair and overhaul services.

As the largest air carrier between China and Europe, Air China has been
expanding its route network covering the whole Europe. As of today, Air China
owns 23 flight routes between China and Europe with 194 flights per day,
reaching 19 major cities in Europe including London, Paris, Frankfurt, Vienna,
Rome, Moscow, and Madrid, etc. In 2013, Air China transported 1.95 million
passengers between China and Europe with an average load factor of over 80%.
Based on a strong and balanced global network with Beijing as a hub, and
especially since it joined the Star Alliance in 2007, Air China is able to
connect passengers to 1328 airports in 195 countries. The joint venture
partnership with Lufthansa marks another important step in the globalization
process of Air China and will provide passengers with more flight connections
and travel convenience.

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