January 19, 2005, Taipei, Taiwan – China Airlines took delivery of its 16^th B747-400F freighter today, in response to continuing strong demand from the global air cargo market. China Airlines plans to introduce three new B747-400Fs and phase out one MD-11 freighter this year. By the end of the year, China Airlines will operate a cargo fleet of 18 B747-400Fs, making it the largest operator of this aircraft type in the world. The B747-400F will be the only freighter used by the China Airlines cargo fleet.

According to the International Monetary Fund, despite high oil prices and the depreciation of the US dollar, the world economy is expected to grow 4.3% this year, and international trade is predicted to increase 8%. As a result, the air cargo market will likely continue to boom. CAL’s cargo capacity will increase 7% in 2005 compared with 2004, and cargo revenue is expected to grow 12%.

China Airlines will add nine weekly long-haul cargo flights in 2005. In the coming summer schedule, CAL will fly 28 round-trip flights per week in Asia, 33 round-trip flights per week to North America, and 13 round-trip flights per week to Europe. CAL was ranked 7^th in the world in terms of international cargo traffic carried in 2003 by IATA.

China Airlines inaugurated its Taipei-Nagoya passenger route in 1989 and currently operates a daily roundtrip service.

With a population of 2.19 million, Nagoya is the 4^th largest city in Japan, and is part of Aichi Prefecture. Many famous companies, including Toyota, Sony, Brother, and Fuji-Xerox, have factories in Aichi Prefecture. This industrial output will provide abundant cargo for CAL’s new service. A B747-400F freighter will serve this route, to accommodate the larger cargo produced in this part of Japan.