Recently, Cathay Pacific Airways said that it might provide some financial support for Air China Ltd's activities concerning a purchase into China Eastern.

Cathay Pacific holds a 17.5 percent stake in Air China. Tony Tyler, CEO of Cathay Pacific, said in an interview with the Financial Times that if Air China issues massive shares after buying the entire or most of China Eastern, his company hopes to avoid diluting its stake in Air China. Therefore, Cathay Pacific is very likely to support Air China financially in bidding for China Eastern in order to keep its stake in the latter and enhance its market presence in Shanghai.

For more details, please read the full story in Chinese. (http://www.china-cbn.com/s/n/000004/20080213/000000088882.shtml)

(China.org.cn February 13, 2008)