Real Property Issue

Air China Ld
01 April 2005



                               AIR CHINA LIMITED

(a joint stock limited company incorporated in the People's Republic of China
                            with limited liability)

                               (Stock Code: 753)


    UPDATE ON PROCESS OF REGISTRATION OF REAL PROPERTIES TITLE CERTIFICATES

Reference is made to the prospectus of the Company issued on 3 December 2004.
The Company hereby announces that, in connection with the properties contributed
by CNAHC to the Company as part of the Restructuring, the registration of the
relevant land use right certificates and building ownership certificates under
the Company's name has not been completed as of 31 March 2005.  The Company
is still in the process of completing relevant procedures and formalities and
will notify its shareholders in the interim or annual report immediately
following the completion of such process.  Before completion, use of such
Properties by the Company will not be affected.

Reference is made to the prospectus issued by the Company dated 3 December.  As
disclosed in the section headed 'Business - Properties and Facilities' of
the prospectus, most of the land and buildings (the 'Properties') of the
Company were registered under the name of the Company's immediate
predecessor, Air China International Corporation, at the time of Restructuring.
 As the Company was incorporated on 30 September 2004, it is still in the
process of applying to register, or changing the registration of such Properties
into the Company's name as the registered land user or building owner, as the
case may be.  The Company had previously expected such process to be completed
within six months of the Company's incorporation, i.e. 31 March 2005.

The Company hereby announces that in connection with the above Properties,
although the Company has been trying its best endeavours, it has completed the
registration procedures for none of these Properties as of 31 March 2005.  Due
to the large number of properties acquired by the Company and the fact that
different local real property authorities have different local rules regarding
the procedures and formalities of registering or changing the registered names
of the Properties, the Company is still in the process of completing such
procedures and formalities.  Specifically, the Company is currently awaiting a
certification document to be issued from State-owned Assets Supervision and
Administration Commission of the State Council which is a precondition for the
registration procedures for the Properties in certain local areas.  The Company
expects such certification document to be issued in the next few weeks.

The Company confirms that the use of and the conduct of relevant activities by
the Group in the Properties are not affected by the fact that certain
governmental procedures or formalities of changing the registered names to the
Properties have not been completed.  In the Company's opinion, such fact
would not have any material impact on the Company's business operation.  Once
the new land use right certificates and building ownership certificates are
issued under the Company's name, the Company will have the legal title and
right to occupy, mortgage, sub-let and dispose of the Properties.

As disclosed in the prospectus, the Company will notify its shareholders in the
interim or annual report immediately following the completion of the process in
relation to the Properties.


DEFINITIONS

'Board'                    the Board of Directors of the Company

'CNAHC'                    China National Aviation Holding Company, a 
                           state-owned enterprise incorporated under the laws of 
                           the People's Republic of China

'Company'                  Air China Limited, a joint stock company incorporated 
                           under the laws of the People's Republic of China

'Directors'                the directors of the Company

'Group'                    the Company and its subsidiaries and joint ventures

'Restructuring'            the restructuring of the group of companies now 
                           comprising the Company, effective on 30 September 
                           2004 as described in the section headed 'Our 
                           Restructuring' in the Company's prospectus dated 3 
                           December 2004


                 By order of the Board
                    Air China Limited
                         Fan Cheng
                         Li Man Kit
               Joint Company Secretaries

Beijing, the PRC
1 April 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.





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