FRAMEWORK AGREEMENT FOR PURCHASE OF BOEING 7E7 ...

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents
of this announcement, makes no representation as to its accuracy or completeness
and expressly disclaims any liability whatsoever for any loss whatsoever arising
from  or  in  reliance  upon  the whole or any part  of  the  contents  of  this
announcement.


                                AIR CHINA LIMITED
  (a joint stock limited company incorporated in the People's Republic of China
                             with limited liability)
                                (Stock Code: 753)


             FRAMEWORK AGREEMENT FOR PURCHASE OF BOEING 7E7 AIRCRAFT



The  Company  hereby  announces  that on 28  January  2005  the  Company,  other
Contracting  Chinese  Airlines, CASGC and the Boeing Company  entered  into  the
Framework Agreement, pursuant to which the Company expects in the near future to
enter  into  the Specific Purchase Agreement for the acquisition of  the  Boeing
Aircraft.

The  Specific  Purchase Agreement is expected to be finalised but,  as  yet,  no
definitive agreement has been reached.




The  Company  hereby  announces  that on 28  January  2005  the  Company,  other
Contracting  Chinese  Airlines, CASGC and the Boeing Company  entered  into  the
Framework  Agreement pursuant to which the CASGC agrees to purchase  (as  import
agent  for  the Company and other Contracting Chinese Airlines) from the  Boeing
Company  60  Boeing  7E7  aircraft, the aggregate  catalog  price  of  which  is
approximately US$7.3 billion. Pursuant to the Framework Agreement, each  of  the
Contracting  Chinese Airlines will enter into separate purchase agreements  with
CASGC  and the Boeing Company in respect of the purchase of a certain number  of
aircraft out of the total 60 Boeing 7E7 aircraft.

The  Company  expects  in the near future to enter into  the  Specific  Purchase
Agreement  with  CASGC  and  Boeing Company for the acquisition  of  the  Boeing
Aircraft  at  an aggregate consideration expected to be lower than  the  catalog
price  for the Boeing Aircraft. The delivery of the Boeing Aircraft is  expected
to  take  place  in  stages from mid 2008.  The Specific Purchase  Agreement  is
expected  to be finalised but, as yet, no definitive agreement has been reached.
If  and  when the Specific Purchase Agreement has been signed, the Company  will
make a further announcement.

The  Board  on 28 January 2005 gave its in-principle approval for the  Company's
proposed acquisition of the Boeing Aircraft.  The Board believes the acquisition
of the Boeing Aircraft will expand the fleet capacity of the Company and further
enhance its fleet.

The  Company confirms that, to the best of the Directors' knowledge, information
and  belief,  each  of the CASGC and the Boeing Company is an independent  third
party  and  not  a  connected person (as defined in the Listing  Rules)  of  the
Company.


DEFINITION

In this announcement, unless the context otherwise requires, the following terms
shall have the following meanings:


"Board"                          the board of directors of the Company
"Boeing Aircraft"                15 Boeing 7E7 aircraft proposed to be purchased by the
                                 Company pursuant to the Specific Purchase Agreement
"Boeing Company"                 Boeing Company, a company incorporated in Delaware of
                                 the United States
"CASGC"                          China Aviation Supplies Import and Export Group
                                 Corporation, a company incorporated in the People's
                                 Republic of China
"Contracting Chinese Airlines"   several major Chinese airline companies which
                                 are parties to the Framework Agreement, including,
                                 among others, the Company, China Eastern Airlines
                                 Corporation Limited and China Southern Airlines Company
                                 Limited
"Company"                        Air China Limited, a company incorporated in 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
 "Director(s)"                   the director(s) of the Company
"Framework Agreement"            a framework agreement entered into between the
                                 Contracting Chinese Airlines, CASGC and Boeing Company
                                 on 28 January 2005 for the purchase of Boeing 7E7
                                 aircraft
"Listing Rules"                  The Rules Governing the Listing of Securities on The
                                 Stock Exchange of Hong Kong Limited
"Specific Purchase Agreement"    the specific purchase agreement expected to
                                 be entered into in the future between the Company,
                                 CASGC and the Boeing Company for the purchase by the
                                 Company of the Boeing Aircraft







                                    By order of the Board
                                      Air China Limited
                                        Li Jiaxiang
                                          Chairman

Beijing, 28 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.