FOR IMMEDIATE RELEASE 30 May 2005 (TOKYO) The International Air Transport Association (IATA) honored YANG Yuanyuan, Minister of the Civil Aviation Authority of China (CAAC) with its second Global Aviation Leadership Award (GALA).

"In his three year tenure Minister YANG has led the development of aviation in China with a great vision. His commitment to progressively liberalize the Chinese aviation market and work to harmonize Chinese air traffic control with global standards demonstrate the leadership that the GALA awards were intended to recognize," said Giovanni Bisignani, IATA's Director General and CEO.

Simplifying the Business, IATA's most important industry initiative is a national programme in China, complementing a Memorandum of Understanding signed with China TravelSky. China has committed to eliminating paper tickets in the domestic BSP by 1 June 2006. "The partnership that we have built with China is impressive. Leveraging the high speed growth of China's aviation development, we will be able to leapfrog many legacy systems, implementing a cost-efficient and passenger-friendly way to travel that will be a model for others to follow," said Bisignani.

China is a priority for Air Traffic Control development. Polar Routes that pass through Chinese airspace are critical to efficient connections between Asia and North America. Recent work to allow flexible entry points into Chinese airspace optimizes the effectiveness of these routings. Work on the IATA 1 route, connecting North Asia with Europe immediately north of the Himalayas will save 17 minutes on each flight. Progress is being achieved with better dialogue between civil and military aviation officials.

Finally, China's record on safety has been impressive. Despite the high-speed growth of recent years, China was accident-free between May 2002 and November 2004. Already 5 Chinese carriers have completed the IATA Operational Safety Audit and 11 more are committed to complete the audit by year's end.

"The development of China's aviation sector has benefited from a strong vision and policy leadership. From progressive liberalization to modernizing air traffic control, streamlining industry processes and improving safety the results are impressive. I look forward to further strengthening our partnership with China to continue to build a vibrant aviation sector based on global standards.

- IATA -

Notes for Editors

1. The IATA GALA award was created in 2002 to commemorate the 100th Anniversary of the Wright Brothers' first flight. The GALA award is given to outstanding personalities in the aviation industry for high level and specific contributions to the international airline community.
2. This is the second GALA award. The only previous recipient was Dr. Assad Kotaite, President of ICAO Council who was awarded the GALA at the 59th IATA AGM in Washington in June 2003.
3. IATA opened its Regional Office for North Asia in Bejing on 15 April 1994. Currently 15 Chinese carriers are IATA members.
4. Key Chinese Aviation Statistics in 2004 (CAAC Statistics)
a. 23 billion tonne-kilometers (+34.7% on 2003)
b. 120 million passengers (+38% on 2003)
c. 2.73 million tonnes of cargo carried (+24.5% on 2003)
d. Industry profit of RMB 10 billion (US$1.2 billion)

Biographical Notes:

Minister YANG Yuanyuan, began his career in aviation in 1966 as a pilot trainee in the People's Liberation Army. He entered civil service as a flight inspector for the Civil aviation authority of China (CAAC) in 1981. In January 1988 Minister YANG joined China Southern Airlines as Deputy Chief Pilot and Vice President of China Southern Airlines. He returned to government service a decade later as Director General of the CAAC's Department of Flight Standards. The following year (1999) he was appointed Vice-Minister of the CAAC and became Minister in May 2002.

Minister YANG was elected as a Council Member at the 35th Assembly of the International Civil Aviation Organization. Under Minister YANG's leadership, in 2004 China singed a total of 96 bilateral air service agreements, including the Sino-US agreement that will triple air services between the two countries by 2010. Minister YANG pursued domestic deregulation and price competition, including designating 94 routes for which pricing is completely market driven.