Statement to the Honk Kong Stock Exchange: Acquisition (edited excerpt)
(Source: China Eastern Airlines; issued Nov. 23, 2012)
On 23 November 2012, the Company (as the purchaser) entered into the Purchase Agreement with Airbus SAS (as the seller) regarding the Acquisition.

Aircraft to be acquired: The Airbus Aircraft (i.e. sixty brand new Airbus A320 series aircraft)

Consideration: The aircraft basic price of the Airbus Aircraft in aggregate is approximately USD5.392 billion (equivalent to approximately RMB34.239 billion) based on the relevant price catalog in 2012. Such aircraft basic price comprises the airframe price and engine price.

The Purchase Agreement was negotiated and entered into in accordance with customary business and industry practice, under which Airbus SAS has granted to the Company substantive price concessions with regard to the Airbus Aircraft.

Such price concessions were determined after arm’s length negotiations between the Company and Airbus SAS and as a result, the Consideration is significantly lower than the aircraft basic price of the Airbus Aircraft mentioned above.

Delivery: The Airbus Aircraft are expected to be delivered to the Company in stages from 2014 to 2017.

DISPOSAL

On 23 November 2012, the Company (as the seller) entered into the Disposal Agreement with Airbus SAS (as the purchaser) regarding the Disposal.

Aircraft to be disposed of: The Regional Jets (i.e. eight Canadair Regional Jets, CRJ, and ten Embraer Regional Jets, EMB). They were delivered to the Company from years 2000 to 2007. The average usage of the Regional Jets is approximately 8.2 years.

Consideration for the Disposal Agreement: The consideration for the Disposal Agreement is determined after arm’s length negotiation between the parties with reference to the unaudited book value of the Regional Jets as at the Delivery Dates and the condition of each of the Regional Jets as at the Delivery Dates.

As at 23 November 2012, the unaudited book value of the Regional Jets is approximately RMB1.535 billion. The consideration price comprises the airframe price, accompanying engine price and accompanying accessories price.

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