Positioning of Air China

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To be an internationally well-known airline

Air China’s positioning, the objective of future development and the vision of Air China is to be an airline recognized by mainstream customers, the most valuable and profitable airline in China and an internationally competitive airline. It is also an outline of the Air China’s development strategy.

• In order to be an internationally well-known airline, Air China must achieve the leading service level, service brand, profitability and international competitive edge in the Chinese airline industry. The vision of Air China clearly defines the leading position of Air China in the world airline industry as well as its international reputation.
  
  
• To be an internationally well-known airline represents the comprehensive strength and competitive advantage of Air China, which demands that Air China’s organization, management, service, operation, brand, fleet, credit and culture are all of international standards. An internationally well-known Air China must have the following fundamental features:
  
  
1. To be recognized by mainstream customers of business and commercial travelers with the aim of making Air China their preferred airline by featuring high value products. Passengers other than business and commercial travelers are Air China’s focus because once our service is recognized by mainstream customers it will be more easily favored by other customers. To measure whether we are recognized by mainstream customers, we look at having the highest market share in the domestic business and commercial travel market. We also look at other leading airlines in terms of aircraft, infrastructure, service, management, capabilities and employees.
   
   
2. To be the most valuable airline in China means that Air China is committed to having the highest market value and value per share among Chinese listed companies. Air China’s stock should be valuable for investors and welcomed by shareholders. Additionally, Air China is aiming at the highest brand and service values so Air China becomes the priority choice of customers. The employees of Air China are committed to working hard to offer superior customer services and to maximize the value of Air China.
   
   
3. To be the most profitable airline in China and have growth potential to achieve healthy development while reaping better returns for shareholders, the company and the employees, Air China is pursuing a way that leads to the combination of both scale of business and strong profitability. By seizing historical opportunities of the continuous growth momentum of the Chinese air transport industry, Air China is striving for market optimization and cost reduction while maintaining strong profitability.
   
   
4. To be an internationally competitive airline with the objective of becoming an international leading airline by competing with foreign airlines, Air China strives to establish its global presence to obtain more room for development. In order to be competitive in international markets, it is necessary for Air China to build and maintain its competitive strengths in terms of management, personnel, resources, etc. and to secure a strong competitive edge in the world airline industry. Air China will play its role as an industry leader domestically and shorten the gap with international leading companies. Our goal is to be ranked within top 15 airlines in the world by 2010 and to be one of the strongest airlines in the world.