On 26 April 2024, Air China Limited entered into the COMAC Aircraft Purchase Agreement with COMAC, pursuant to which the Company has agreed to purchase the COMAC Aircraft from COMAC. Aircraft to be acquired: 100 C919 aircraft (Extended-ranged Version). The COMAC Aircraft Purchase Agreement was negotiated and entered into in accordance with customary business practice.

The Directors confirm that the extent of the price concessions granted to the Company in the COMAC Aircraft Purchase is fair and reasonable and comparable with the price concessions provided under the previous similar transactions. The Company believes that there is no material impact of the price concessions obtained in the COMAC Aircraft Purchase on the unit operating cost of the Group's fleet. It is normal business practice of the global airline industry to disclose the aircraft basic price, instead of the actual price, for aircraft acquisitions.

The aggregate consideration for the COMAC Aircraft Purchase is payable by cash in instalments. The Company is expecting to take delivery of the COMAC Aircraft in stages from 2024 to 2031. The COMAC Aircraft Purchase will be funded by self-owned cash, commercial bank loans and other financing methods.

The COMAC Aircraft Purchase is expected to have no material impact on the cash flow and business operation of the Company.