Beijing, China - May 22nd, 2006 - Air China Limited ("Air China") and the Star Alliance, the airline network for Earth(TM), today signed a Memorandum of Understanding confirming an invitation for Air China to join the alliance.

Commenting on today's event, Jaan Albrecht, Star Alliance CEO said: "With Air China having chosen to join Star Alliance, we have now taken the decisive step in implementing our strategy for the Chinese market. This decision truly lays the foundation for the future pace in Chinese Aviation."

Attending the event was the Chancellor of the Federal Republic of Germany, Dr. Angela Merkel, who is on her first visit to China; German Federal Minister for Transport, Building and Urban Affairs, Wolfgang Tiefensee; Minister Yang Yuanyuan of the General Administration of Civil Aviation of China. Mr. Li Jiaxiang, Chairman of China National Aviation Holding Company, Mr. Ma Xulun, President of Air China Limited, Mr. Jaan Albrecht, CEO of Star Alliance and several CEOs of the Star Alliance member carriers were also present at the ceremony together with 150 distinguished guests.

Mr. Li Jiaxiang, Chairman of China National Aviation Holding Company and Chairman of Air China Limited, said in his speech: "With economic globalisation and open skies, the competition in the airline industry will become more and more severe. No one airline can create a global network by itself. In order to survive and develop, airlines have to cooperate with other partners in various forms including multilateral alliance cooperation." "Cooperation between Air China and Star Alliance will be mutually beneficial. Currently, China is one of the fastest growing civil aviation markets with great potential. Through cooperation with Air China, Star Alliance will connect its international route network with China through Air China's extensive domestic network and extend its global route network. The travelling public will have access to more convenient services, savings made and efficiency improved," Mr. Li said.

The Star Alliance network recently also extended an invitation to Shanghai Airlines to join the alliance. This dual-hub approach will allow the alliance to offer a unique network from the two most important airports in China.

Once both Air China and Shanghai Airlines will have become full members of the alliance, the Star Alliance network will grow to 20 members, offering more than 16,500 daily fights to 912 destinations in 160 countries.

Ends

Contact:

Star Alliance Press Office Tel: + 49 6996375 183 Fax: + 49 6996375 683 Email: [email protected] www.staralliance.com

The media release can be downloaded from the following link: