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Air China Won the “2006 Golden Service Award”
in the “Civil Aviation in My Eyes” Program

The results of the 2006 "Civil Aviation in My Eyes" Program, organized by the Customer Committee of the CAAC Association, were revealed on February 1, 2007. Air China Limited won the "2006 Golden Service Award" competing with airlines that have a passenger traffic volume above 15 million. It is the third consecutive year that Air China won the award so it was granted the "Golden Service Prize". At the award ceremony, Mrs. Yang Lihua, Vice President of Air China, delivered a speech titled "Enhancing Service Quality and Forging World-Class Brand".

VP Yang shared in her speech that in 2006, Air China continued to enhance service quality, maintained a satisfactory safety record, and increased revenues. Total passenger traffic volume increased to 31.504 million. Winning the Golden Service Award for the third time reflects the recognition and acknowledgement from the traveling public for Air China's service quality and brand. VP Yang also emphasized that Air China's efforts in service quality improvement has been guided by new concepts and values, including the concept of market and customer orientation.

Service quality enhancement is linked to innovative management. Air China attaches great importance to improving service quality from a strategic level by resolving problems systematically through optimizing and redesigning working procedures. For instance, flight delay is an issue that causes universal concern. Air China has put forth much effort to finding deficiency in its working procedures, such as flight scheduling, passenger organization, airport organization and information sharing. By optimizing the working procedures, Air China achieved a punctuality rate of 81.25% in 2006. It was one of two Chinese airlines that improved this index compared to the previous year.

Air China improves its service quality by focusing on resolving essential problems. Air China’s service team is growing along with the airline’s continuous expansion. A better-coordinated relationship between the frontline and supporting departments along with effective allocation of service resources, have brought more motivation and innovation to the employees.

While introducing Air China's key tasks for 2007, VP Yang pointed out that Air China would fully leverage the opportunities brought by the company's restructuring to establish an organization that would respond to intensified market competition and increasing customer demand. In 2007, Air China plans to improve its flight punctuality rate and overall operation efficiency through better aircraft allocation, maintenance resource integration, and IT system construction. Equal effort will be put in developing reasonable compensation packages for irregular operations such as a flight delay. As the official carrier and partner of the 2008 Olympic Games in Beijing, Air China is investing in reconstructing infrastructure, introducing new equipment, redesigning working procedures, upgrading information systems and training personnel. Air China is aiming to welcome the 2008 Olympic Games with a highly efficient operation model.

Lastly, VP Yang introduced Air China's "Four Strategic Goals" and "Five Development Strategies". Guided by these goals and strategies, Air China will continue to improve its service quality to expand the Air China brand and create value for the customer .