April 15, 2004, Taipei, Taiwan- In response to strong cargo market demand, China Airlines announced additional order of two Boeing 747-400F freighters, which are scheduled to be delivered in 2006. By 2007, the carrier will operate a cargo fleet of 21 freighters. China Airlines plans to take delivery of two B747-400 passenger jets and two B747-400 freighters this year and will have 30 B747-400s by the end of 2004.

According to International Air Transport Association (IATA) forecast, air cargo demand for Taiwan will enjoy an average annual growth rate at 7% during 2003 and 2007. In the first quarter of 2004, China Airlines!| cargo volume soared by 20.9% compared to the same period last year in terms of FRTK.

China Airlines is introducing two new B747-400Fs to replace two of the leased freighters this year. China Airlines now ranked 7th largest cargo operator in terms of FRTK on international routes. The carrier!|s 15 Boeing 747-400Fs are the world's largest fleet size of its kind. In order to meet short term demand, China Airlines also arranges a one-year wet lease term of one MD-11 freighter.

Boeing 747-400 is the largest and most welcomed aircraft in commercial aviation market, either for passenger or cargo transportation. To the combination of spacious cabin interior, salable number of seats and payload, the B747-400s always meet the operators!| demand in terms of service quality and cost efficiency.

China airlines now operated 44 passenger aircraft and 15 freighters. In 2004, China Airlines will receive three A330-300s and four B747-400s.