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.
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