09:30     AIR CHINA<00753> - Announcement (2)                                 

    in Europe, Australia, North America and certain key domestic              
    destinations such as Lhasa.  The Airbus Aircraft are expected to          
    replace certain aircraft in the existing fleet of the Company and will    
    be able to provide more comfortable services to the passengers.           
                                                                              
    The Directors believe that the terms of the Transaction are fair and      
    reasonable and in the interests of the shareholders of the Company as     
    a whole.                                                                  
                                                                              
    FURTHER INFORMATION                                                       
                                                                              
    CNAHC currently directly owns approximately 51.16% of the total issued    
    share capital of the Company.  Each of CNAHC and its associates (as       
    defined in the Listing Rules) does not have any interest in the           
    Transaction other than as a shareholder of the Company (where             
    applicable).  No shareholder of the Company is required to abstain        
    from voting if the Company were to convene a general meeting for the      
    approval of the Transaction.  CNAHC has approved the Transaction by       
    way of a written approval pursuant to Rule 14.44 of the Listing Rules.    
    The Company shall, pursuant to the Listing Rules, send a circular         
    containing the information required under the Listing Rules in            
    relation to the Transaction within 21 days after the publication of       
    this announcement.                                                        
                                                                              
    DEFINITION                                                                
                                                                              
    In this announcement, unless the context otherwise requires, the          
    following terms shall have the following meanings:                        
                                                                              
    "AIE"   Air China Group Import and Export Trading Co., a company          
    incorporated in the People's Republic of China and a wholly owned         
    subsidiary of the Company                                                 
                                                                              
    "Airbus"        Airbus S.A.S., a company incorporated in Toulouse, France 
                                                                              
    "Airbus Aircraft"       20 A330-200 aircraft to be purchased by the       
    Company                                                                   
    pursuant to the A330-200 Purchase Agreement                               
                                                                              
    "A330-200 Purchase      the aircraft acquisition agreement dated 26       
    January                                                                   
      Agreement"     2005 pursuant to which the Company has agreed to acquire 
    and Airbus has agreed to sell the Airbus Aircraft                         
                                                                              
    "Board" the board of directors of the Company                             
                                                                              
    "Company"       Air China Limited, a company incorporated the People's    
    Republic of China with primary listing on The Stock Exchange of Hong      
    Kong Limited and secondary listing on the Official List of the UK         
    Listing Authority                                                         
                                                                              
    "CNAHC"         China National Aviation Holding Company, a company        
    incorporated in the People's Republic of China                            
                                                                              
    "Director(s)"   the director(s) of the Company                            
                                                                              
    "Listing Rules" The Rules Governing the Listing of Securities on the      
    Stock Exchange of Hong Kong Limited                                       
                                                                              
    "Transaction"   the acquisition by the Company of the Airbus Aircraft     
    pursuant to the A330-200 Purchase Agreement                               
                                                                              
    By order of the Board                                                     
    Air China Limited                                                         
      Li Jiaxiang                                                             
     Chairman                                                                 
    Beijing, 26 January 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.