In 2021, the brand value of Air China was RMB 197.236 billion according to the assessment of the World Brand Lab.

On March 28, Air China successfully completed the task of delivering COVID-19 vaccines donated by China to the Republic of El Salvador.

Air China guaranteed the delivery of COVID-19 vaccines to Thailand

Air China guaranteed the delivery of COVID-19 vaccines to Indonesia

Air China guaranteed the delivery of COVID-19 vaccines to Myanmar

At the critical moment of the pandemic crisis in Manchuria, Air China successively carried out 5 charter flights and urgently transported 633 medical personnels to Hulunbuir

Air China urgently transported 260 medical personnel from Chifeng City and 3.79 tonnes of anti-pandemic supplies from Tongliao City to aid the anti-pandemic front line of Ejin Banner

Precise Pandemic Prevention and Control

1. Making every effort to carry out remote prevention and control, and arranging passengers' schedule according to the pandemic prevention and control guidelines;

2. Strict management for the flight crew;

3. Conscientiously implementing the requirements of pandemic prevention and control and disinfection of inbound aircraft;

4. Organizing staff for investigation, nucleic acid testing, vaccination and isolation control

Measures for Precise Pandemic Prevention and Control

l Major in-flight pandemic prevention and control measures

Wearing a non-breathing valve mask during the flight, and not taking off the mask unless necessary

Reducing unnecessary movement in the cabin, and not changing seats except in special circumstances

Placing discarded protective articles in a cleaning bag from the pocket in the front of the seat and getting it sealed

l Preparation before boarding

Passengers on domestic flights need to cooperate in checking the health code and negative nucleic acid test certificate; passengers on international and regional flights need to provide "HS/HDC Green Code" and the" China Customs Code" approved by the local Chinese embassy and consulate

Guiding the passengers to get boarded through contactless methods such as self-service check-in, mobile APP check-in, and QR code check-in

Hand cleaning and disinfection

Temperature check, etc.

l Major pandemic prevention and control measures for in-flight services

Making efforts to arrange passengers to sit in separate seats

Arranging passengers to dine in batches according to their seats in single and double Columns

Organizing passengers to use bathrooms  orderly and maintaining appropriate distance while waiting

Dividing the cabin area into passenger seating area and isolation area

Providing necessary anti-pandemic materials such as masks, disinfectant wipes, disposable medical rubber gloves for passengers with symptoms

l Major pandemic prevention and control measures for crew members

Before performing the flight mission, all crew members must be fully vaccinated against COVID-19

Different protective measures should be taken according to the flight risk level

Anti-pandemic Care for Staffs

Organizing Activities: Provided online activities under the themes of "Don't gather together during the pandemic period, and live happily" and "Seven-day sports check-in" to enrich staff' quarantine life.

Caring for Health: Continued to care for the mental health of aircrews under quarantine through psychological classes, 24-hour chat hotline, WeChat interaction, video connection, etc.

Examining the Environment: Enhanced the supervision of the pandemic prevention and control work of the hotels where the aircrews received quarantine, and showed care for them.

Giving out subsidies: Formed a normalized consolation mechanism, and allocated special subsidies of RMB 12.57 million to 19 grassroots trade unions.

Aircrews and groundcrews under quarantine:4,058 person-times

Nucleic acid tests staffs received:24,332 person-times

Developing training plans

Air China set up a special working group for Winter Olympics training to provide training to about 16,000 Winter Olympics service support personnel under four categories, including flight crews, ground support personnel, ticket counter service personnel, and Winter Olympics service personnel selected by the Company.

Cultivating seed trainers

Air China invited experts from China Volunteer Association for Disabled Persons to train more than 50 seed trainers in terms of skills for the disabled.

Offering industry training

Air China introduced the guarantee requirements of the Beijing Frankfurt route, its demonstration

route for the Winter Olympics, to various airlines and carried out industry training to help improve the civil airlines' transportation guarantee level for the Winter Olympics.

Developing guarantee mechanisms.

Air China released the Winter Olympics Flight Operation Guarantee Work Plan, the Ground Service Arrival and Departure Guarantee Plan for Beijing 2022 Winter Olympics and Paralympics Test Matches, and the Winter Olympics and Paralympics Sports Equipment Acceptance and Transportation Standards, and sorted out the Flight Guarantee Processes for Important Passengers to effectively guide the operation guarantee of the Winter Olympics flights.

Offering Ticket guarantee for the Winter Olympics and Paralympics.

Air China built a global ticket guarantee system, and set up services website and the special service line for Winter Olympics and Paralympics. During the Winter Olympics and Paralympics period, a total of 5,032 tickets were guaranteed.

The plane painted with "Winter Olympics Sports" made maiden flight

On February 26, the Winter Olympic themed plane, designed by Air China and the Beijing Organising Committee, took off from the Beijing Capital International Airport to Wuhan. This was the second Winter Olympic themed plane Air China painted.

Management Support Division

Administration Office

Strategy and Development Department

Human Resources Department

Finance Department

Aviation Safety Management Department

Flight Technology Management Department

Assets Management Department

Operation Standards Department

Product Service Department

Stations Management Department

Legal Department

Audit Department

Aviation Security Department

Office of the Board

Leading Group Office of Deepening Reform

Corporate Culture Department

Clean Administration of Party Construction and Anti-corruption Work Leading Group Office

Discipline Inspection Office

Labour Union Office

Business Management Units

Operation Control Centre

Flight Crew Department

Commercial Committee

Ground Services Department

Cabin Services Department

Training & Development Department

Logistics & Support Department

Information Management Department

Air Marshall Department

Centralized Procurement Department

Retiree Service Department

Hub Development Department

Engineering Maintenance Department

Branches

Southwest Branch

Zhejiang Branch

Chongqing Branch

Tianjin Branch

Shanghai Branch

Hubei Branch

Xinjiang Branch

Guizhou Branch

Guangdong Branch

Tibet Branch

Wenzhou Branch

Major Subsidiaries

Aircraft Maintenance and Engineering Corporation

Shenzhen Airlines Company Limited

Beijing Airlines Co., Ltd.

Dalian Airlines Co., Ltd.

Air China Inner Mongolia Co., Ltd.

China National Aviation Finance Co., Ltd.

China National Aviation Company Limited

Air Macau Company Limited

Air China Development Corporation (Hong Kong) Limited

Air China Import and Export Trading Co., Ltd.

Beijing Golden Phoenix Human Resources Co., Ltd.

Zhejiang Air Services Co., Ltd.

Chengdu Falcon Aircraft Engineering Service Co., Ltd.

Air China Shantou Industrial Development Company

Carrying out Party history learning and education

Air China established a Party history learning and education leading group and working organization, formulated and issued work plans that clarified 20 major categories and 41 specific key tasks, promoted Party history learning and education throughout the Company, and ensured effective and efficient learning.

In 2021, Air China did not get involved in corruption lawsuits

One Vision

Building a world-class digital aviation enterprise through high-quality development

Three Directions

Enhancing passenger experience

Enhancing asset efficiency

Empowering staff

Perfect digital architecture, shape digital capabilities

Six Capabilities

Smart Travel

Smart Operation

Smart Staff

Digital Smart Service

Smart IT

Digital Risk and Safety Prevention and Control

Improving the governance system and providing a guarantee for digital transformation

Four Guarantees

Mechanism Construction

Overall Organization

Structure Management

Ecological Integration

Business model transformation

Air China set up six business capability centres and data middle-grounds of customers, products, transactions, marketing, payment settlement, and operations, conducted unified customer management, and realized intelligent marketing and ecological operation

Service model transformation

Air China encouraged self-check-in, self-luggage check-in, self-boarding, and other services

Intelligent technology application

Air China increased the application of new technologies such as artificial intelligence and face recognition and the construction of in-flight networks

Digital empowerment support

Air China established a company-level global ground support platform to accomplish "digital empowerment" of ground staff and managers, built back-end management systems such as passenger quality management system and service compensation system and achieved refined closed-loop management of passenger services

With the System Operations Center (SOC)as the core, Air China strengthened the control of three core operating resources of flights, aircraft, and crews

Supported by the Operational Management Information System and System Operations Center(SOC), etc., Air China provided strong support for the full-process operation management

Air China implemented security risk management with the help of the digital operation risk assessment system

Supported by the Electronic Flight Bags (EFB), the Quick Access Recorder (QAR) and other analysis applications and systems, Air China enhanced data sharing and analysis abilities, and improved the quality of flights and operations

Aircraft Prognostics and Condition-based Maintenance (APCM) System

Air China made use of a data model to analyse the performance of the aircraft system, and realize the aircraft fault prediction and analysis of the status of the aircraft system

Designing and developing the production command system

The system could present all elements and resources during the maintenance production

Building a robot inspection platform for the upper surface of the aircraft fuselage

Air China utilized drones for automatic inspection of the upper surface of the fuselage, which increased the detection efficiency by four times

Building a "digital twin" profile of aircraft structures

Air China set up a digital model of the physical structure of the aircraft to ensure its continued airworthiness and safe operations

Company-wide Innovation Laboratory

Aircraft Maintenance Engineering Technology R&D Center

Digital Transformation Innovation Laboratory

Air Internet Innovation Laboratory

Professional Field-based Innovation Laboratory

Chengdu Regional Hub Operation Innovation Laboratory

Operation Control Innovation Laboratory

Marketing Service Innovation Laboratory

Ground Services Innovation Laboratory

Product and Service Enhancement Innovation Laboratory

Cultural and Creative Innovation Laboratory

Innovation achievements made by applying cutting-edge technologies to the air transport business

Research and Application of Narrow Band Internet of Things (NB-IoT) Technology in Airlines

Application of Radio Frequency Identification (RFID) Technology in Luggage Sorting

Application of Biometrics Technology in cabin Services

Expanding industrial chain cooperation

Air China joined the "National Technical Standard Innovation Base (Civil Aviation)" and "Strategic Alliance for Comprehensive Traffic Technology Innovation of Civil Aviation Airport Cluster".

Launching the global aviation ground support platform

In 2021, Air China successfully built the aviation ground support data platform to realize data governance, integrate internal and external data such as aircraft support, passenger services, luggage services, and support resources, and realize data sharing within and between terminals.

Building a new generation of office automation platform - Wings of Air China 3.0

Air China created a mobile terminal application for staff production, improved connection methods, enhanced the timeliness and accuracy of information transmission, and truly incorporated front-line production resources into the closed loop of business management.

The application covered all units of the Company, with a total of more than 30 applications under

5 categories were launched.

Air China had more than 2,770 registered trademarks at home and abroad

Air China had 318 registered patents and 15 copyrights at home and abroad

Air China was not involved in any trademark infringement incidents throughout the year

Air China had 1.59 million safe flight hours in 2021

Accountable incidents of air transportation due to the liability of Air China was 0

Flight Training System

Improved the Pilot Training Outline, the Flight Inspector Workbook and the Flight Training Management Manual for all types of aircraft

Established a flight inspector assessment and appraisal mechanism, set up and completed the model engineer duties and performance evaluation criteria

Promoted the construction of the flight qualification management system, and preliminarily completed the paperless flight training

Safety Management System

Continued with the quantitative risk analysis

Completed the Level 3 Hazard Source Data-base of flight, aircraft, operation control, cabin, ground service, and freight systems

 Developed unified Quick Access Recorder (QAR) data standards, and completed the sorting and integration of QAR data asset catalogs and data standard dictionaries in key areas

Developed the flight data management and application system

Aircraft Maintenance System

Established the product maintenance quality evaluation system to realize trend monitoring and dynamic control of the Company's product maintenance quality

Unified the maintenance plan management and control of the entire fleet, optimized the management and control capabilities and efficiency of airline maintenance, and continuously improved the quality of airline maintenance support

Developed the technical status information collection system for aircraft to comprehensively improve the Company's reliability management level

Improved the dual control and prevention mechanism of safety risk management and hidden danger investigation and management thoroughly implemented the responsibilities of risk-level management, and improved the efficiency of risk management

Operation Management System

Clarified the responsibilities of various departments, sorted out corporate manuals and high risk work procedures, and formulated a list of hazard sources and hidden dangers

Optimized the resource allocation, strengthened the construction of the Aircraft Operations Centre (AOC), and realized the centralized AOC control for short-term flight plans within 72 hours

Comprehensively promoted the application of the flight recovery function of the MM module of the SOC, improved the operational decision-making ability under abnormal conditions and formulated nine recovery scenario templates under six categories

Ameco adopted a safety management system (SMS) consisting of four major parts: policy (P), risk (D), safety compliance(C) and safety assurance (A). By carrying out hazard identification, risk assessment and risk control activities, Ameco effectively reduced the risk of personal injury and property damage, and promoted the realization of its safety goals.

Schematic diagram of the elements of Ameco's safety management system

Plan (P)

Policy Safety and Quality Policy

Organization and Responsibilities

Safety Planning

Compliance with Applicable Laws and Other Requirements

Do (D)

Risk Management

Program and Control

Emergency Plan and Response

Document and Records Management

Check (C)

System Assessment

Safety Supervision System

Safety Information Management System

Action (A)

Safety Promotion

Continuous Improvement

Management Review

System Analysis

l  In 2021, Air China did not get involved in aviation security and fire safety incidents due to the liability

l  Air China conducted 8 special security drills and 23 security tests

l  Air China released 13 issues of aviation security and security risk warnings ,completed the aviation security assessments for 7 newly built domestic airports and 15 international airlines

Training fees for the maintenance of specific qualifications*: RMB 210 million

Average qualification training hours divided by specialty (hour)

Flight training:73.3 hours

General training for ground workers: 68.6 hours

Flight attending training:82.2 hours

Total qualification training hours for pilots (Person-hour)

Flight simulator training: 132,000 person-hours

Safety training: 416,000 person-hours

Hazardous goods retraining: 38,000 person-hours

Emergency retraining: 169,000 person-hours

Total qualification training hours for the flight attendants (Person-hour)

Safety training: 690,000 person-hours

Hazardous goods retraining: 67,000 person-hours

Emergency retraining: 473,000 person-hours

Total qualification training hours for the ground workers (Person-hour)

Safety training: 384,000 person-hours

Hazardous goods retraining: 52,000 person-hours

Scope 1: CO2 emissions (1,000 tonnes) 15,218 

Scope 2: CO2 emissions (1,000 tonnes) 224 

By the end of 2021

• Owned 746 aircraft

• Retired 4 old aircraft

• With the average age of the aircraft of 8.23 years

• Introduced 43 new aircraft

• With the ton-kilometre fuel consumption of 0.357 kg/ton-kilometre

• With the ton-kilometre CO2 emissions of 1,124.70 g/ton-kilometre

Climate change-related contents were disclosed regarding the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

* The Interim Measures for the Management of Carbon Dioxide Emissions Monitoring, Reporting and Verification of Civil Aviation Flight Activities released by CAAC was adopted as the aviation fuel calculation standard, while the Beijing Carbon Emission Unit Carbon Dioxide Emissions Accounting and Reporting Guidelines released by the Beijing Municipal Ecology and Environment

Bureau was used as the ground energy calculation standard.

* In the future, Air China will focus on the main indicators for airlines given in the 14th Five-Year Special Plan for the Green Development of Civil Aviation, gradually refine various environmental performance targets, and continuously disclose the

completion status.

Meeting the requirements of carbon emissions

Air China strictly implemented the external carbon emission management requirements. It completed the monitoring, verification, reporting, and performance of the four carbon emission systems for the EU, China, Beijing, and civil aviation, respectively. In October 2021, the data quality of Air China's carbon emissions report was rated as "excellent" by the Civil Aviation Administration of China.

Deepening the fuel-saving operations

Air China effectively controlled the flight returning and diversion, reasonably controlled the weight of the aircraft, dynamically monitored the aircraft's performance, optimized the airline, managed and calculated the planned aircraft fuel quantity, and improved the accuracy of the pre-allocated payload. Compared with the previous year, Air China saved 20,000 tonnes of aviation fuel and reduced carbon dioxide emissions by 63,000 tonnes in 2021.

Promoting the replacement of the Auxiliary Power Unit (APU)

When the aircraft was parked, ground equipment was used for replacing the APU for the power supply. In 2021, Air China reduced carbon dioxide emissions by 226,000 tonnes by using alternate facilities of the APU.

Participating in international mechanism research

Under the unified leadership of the Civil Aviation Administration of China, Air China participated in the International Civil Aviation Organization Council - Committee on Aviation Environmental Protection (ICAO-CAEP) Working Group, the International Air Transport Association Sustainability and Environment Advisory Committee (IATA-SEAC), and the Star Alliance Sustainability Committee to actively speak up for the civil aviation industry.

The Aircraft Ground Fuel Transfer System independently developed by Air China won the Innovative Project Award of the 4^th (MRO CHINA) Red Crown Award

The aircraft ground fuel transfer system was a new civil aviation operation support system supported by the aviation industry. By realizing the direct transfer of fuel between ground aircraft, the system could effectively reduce regular aircraft inspections, the fuel tank maintenance, airline adjustment, and other wastes from fuel pumping, demonstrating its innovation in ecological protection, energy conservation, and emission reduction.

Launching green travel services

Air China has launched a new green travel service, "Enjoying Low-Carbon Travel" on its APP. Passengers voluntarily participated in domestic carbon emission reduction projects through flight mileage or cash payment, such as afforestation projects, achieved "carbon-neutral" flights, and reduced the impact of air travel carbon emissions on the environment.

In December 2021, Air China launched a new low-carbon scenario for mobile check-in on the Air China Alipay Applet. Passengers were allowed to use the Applet to check-in and get Ant Forest energy.

Optimizing energy use structure

Invested RMB 180 million into the "Electric Driven Changed From Fuel Driven" project in 2021

Owned 925 new energy vehicles

Modified the exhaust system of 1,056 on-site fuel vehicles

Built 240 sets of supporting charging piles independently

Reduced the vehicle fuel consumption by 355.5 tonnes

Reduced carbon dioxide emissions by 1,075.8 tonnes

Compiled and released the 14^th Five-Year Plan for Green Development and compiled Air China's

Environmental Management Manual following the Environmental Management System Requirements with guidance for use.

Obtained the ISO 14001 certificate and became the first airline in the Chinese Mainland to pass the

environmental management system certification.

Independently developed the energy-saving and environmental protection management platform, optimized a carbon emission monitoring and analysis platform, and comprehensively improved work efficiency and data quality.

Standardized emergency management and conducted drills for environmental emergencies such as water pollution, radiation accidents, and hazardous waste accidents.

Water conservation propaganda

Replacing old faucets with water saving ones in canteens

Strengthening public area inspections

Saving the office water in 2021 by 4.905 million tonnes

Saving the water consumption per capita by 56 tonnes

Launching the action of "Bringing Your Own Water Glasses"

In 2021, Air China's Beijing headquarters took the lead in launching the action of rejecting the use of disposable cups, and achieved the goal of "zero use" in July through ban or restriction on the use of such cups.

Waste containers and contaminants

2021:402.9

2020: 300.3

Waste cleaning fluid

2021: 174.1

2020: 121.7

Waste activated carbon

2021: 105.8

2020: 41.4

Spent acid

2021: 26.4

2020: 21.6

Waste mercury-containing fluorescent tubes

2021:1.7

2020:0.9

Waste batteries

2021:0

2020: 0.4

Spent resin, waste rubber

2021: 0.6

2020:0

Waste oil

2021: 160.8

2020: 213.2

Waste paint and paint bleaching liquid/slag

2021: 34.2

2020: 55.5

Wastewater treatment sludge

2021: 164.2

2020: 38.6

Spent alkali

2021:17.9

2020:5.4

Waste reagents and detection solution

2021: 0.3

2020: 0.6

Spent developer

2021: 0.2

2020: 0.3

Actively participating in green public welfare

In 2021, Air China united with the China Environmental Protection Foundation to set up the Air China Yangtze River Ecological Protection Fund, aiming to carry out public welfare activities such as species protection, construction of patrol and protection sites, and material guarantee for rangers for the protection of the ecosystem and endangered species, and contributing to the harmonious coexistence between human and nature through practical actions.

The 14th Five-Year Strategy in the economic field

Building a new pattern of base market

Deepening the strategic synergy between Air China and its holding companies

Improving the control over core markets

Building a world-class hub in Beijing

Consolidating its competitiveness in the international market

Dynamically optimizing the input structure

Coordinated plans for aircraft introduction, engine replacement, aircraft maintenance, and air material support

Strengthened the matching of aircraft and airlines and provided support for production organizations to seek optimal cost matching solutions

Strengthened the linkage between passenger and freight flights, coordinated the market organization of freights and preighters, and flew about 16,000 preighters throughout the year, which was a new profit growth point under the pandemic

Launched the electronic upgrade product seasonly, the boarding gate upgrade product, and domestic weight-based luggage products at ten airports

Carried out procurement of international aviation oil through the joint procurement platform to save the cost

Improved the efficiency of assets, speeded up disposal of scrapped assets, and improved the asset management level

Implemented the development idea of the domestic economic cycle playing a leading role and adhering to the international and domestic economic cycle developing jointly, rationally adjusted the structure of transportation, increased input in the domestic market during the pandemic, and ensured important international flight non-stop

Building a leading position in the Hub market of Beijing, opened up routes, focused on building domestic express lines such as Beijing Capital-Shanghai Hongqiao, Guangzhou, Shenzhen, Chengdu Shuangliu, Chongqing, Hangzhou, etc. to enhance the competitiveness

Established the passenger and freight flights linkage mechanism and greatly increased yield and revenue

Air China flew about 16,000 preighters throughout the year

The domestic capacity of Air China for the year increased by 7.66% on a year-on-year basis.

As of the end of the Reporting Period

Domestic Sales Centres: 4

Domestic Offices: 50

Regional Headquarters: 4

International offices: 85

As at the end of the reporting period, the Company, Shenzhen Airlines (including Kunming Airlines), Air Macau, Beijing Airlines, Dalian Airlines and Inner Mongolia Airlines operated 672 passenger routes

In 2021, the Company flew flights to 151 cities in 25 countries and regions

Through cooperation with Star Alliance members, Air China further expanded its services to 1,300 destinations in 195 countries (regions).

Opening up the operation model of "One Site, Two Zones" in the Beijing Capital International Airport

Air China launched the operation model of "One Airport, Two Zones" in the T2 and T3 terminals of Beijing Capital International Airport, gradually increased the capacity, improved operational efficiency, optimized the travel experience of passengers, and accelerated the pace of building a world-class hub.

Building an international aviation hub in Chengdu

On May 28, the Air China Tianfu Base was officially opened in Chengdu, laying a solid foundation for the development and construction of an international aviation hub in Chengdu. On June 27, Air China CA4195 made its maiden flight from Chengdu Tianfu International Airport to Beijing Capital International Airport.

Serving the Guangdong-Hong Kong-Macao Greater Bay Area

On July 30, the Guangdong Branch was officially established. The company signed a strategic cooperation agreement with Guangdong Airport Management Group Co., Ltd. to promote the cooperation in an all-round way.

Contributing to the construction of the Air Silk Road

On September 10, Air China Xinjiang Branch was officially established in Urumqi. It was an important measure to implement the Belt and Road Initiative, support the regional development of Xinjiang, and build a major air transportation channel in Xinjiang.

Number of suppliers in the procurement business

Domestic: 4,668  overseas and regional: 256

Number of new suppliers in 2021

Domestic:882    overseas and regional：104

On January 1, Air China officially launched the procurement management platform, and advanced the construction of the supply chain by standardizing and regulating the procurement business was strengthened through the electronic system.

Air China established the concept of green procurement and encouraged the suppliers to continuously improve their environmental management level. In January 2022, Air China released the Notice on Promoting Green Procurement to popularize the green and low-carbon concept, promote the priority procurement, and advocate the use of energy-saving, water-saving, material-saving products and services conducive to environmental protection.

Major progress in external cooperation

Actively participated in international affairs, facilitated the establishment of standards, and enhanced its international voice;

Discussed with partners such as United Airlines and EVA Air to promote passenger transfer services in the post-pandemic era, completed the development and testing of "free seat selection for intermodal transportation", and actively explored new ways of cooperation;

Continued to expand the scope of aviation partners, expand the route network, and strengthen code-sharing cooperation;

Participated in the development, testing and promotion of the IATA Travel Pass project, and actively joined in the Health Data Exchange project initiated by the Star Alliance;

Promoted the new Core Values of the Star Alliance, and improved products and services by benchmarking.

From September 28 to October 3, Air China participated in the 13^th China International Aviation

and Aerospace Exhibition (Zhuhai Air Show) to fully demonstrate its operational capacity, services,

products and CSR stories. Air China won the Best Brand Communication Award and the Excellent Organization Award of the civil aviation exhibition area .

From May 20 to 23, Air China participated in the 3rd Western China International Fair for Investment and Trade in Chongqing as a designated airline partner, displaying its new look of "New Journey, Heartfelt Expectations" under the exhibition theme of "Joining Hands with the West China for a Bright Future".

From September 8 to 11, Air China participated in the 21st China International Fair for Investment and Trade as the sole strategic partner in the aviation industry, fully displaying its operations, services and CSR performance, and winning the Silver Award for Creative Featured Exhibition Booth.

On October 12, the 12th China Passenger Airport Experience Summit was held in Shanghai. Air China delivered a keynote speech entitled the Exploring the Application of International Health Passes, sharing its experience on contactless and digital solutions for the restart of international travel.

Creating world-class services and products

Deepening the "Three Orientations"

Practicing the "Three Comprehensive Strategies"

Customer Orientation, Problem Orientation, Value Orientation

Full-process Benchmarking, Full-process Governance, Full-chain Development

Static Planning →Dynamic Management

Fragmented Scene → Full-process Connection

Passively Follow → Actively Lead

First-class Quality, Outstanding Features

Overall Management Flexible Strategy

Full Service, Same Goal

Active and Quick, Proactive and Considerate

Perfect System, Forward-looking Innovation

Excellent Business, Gathering Strength

Standard Construction

Continuously improved and optimized the Full-process Product Service Standards, completed the revision of 22 standards and increased a new full-process product standard throughout the year;

Completed the revision and release of nine management regulations and operating specifications, completed the revision of the General Management Rules and the revision of 10 Management Volumes.

System Operation

Coordinate the promotion of the "Year of Service Quality Standard Construction", planned ten major tasks, and divided them into 17 specific tasks for steady progress;

Organized and implemented internal auditor training/recurrent training, with 153 participants;

Organized and implemented the internal audit/external audit of the service management system.

Complaint Reward and Punishment

Revised the Complaint Management Regulations to clarify the responsibilities of the complaint handling departments at all levels and the time limit for handling complaints;

Revised the Effective Complaint Management Regulations, and re-clarify the criteria for determining effective complaints and the general principles for determination;

Revised the Administrative Measures for Service Rewards and Punishments, refined the scope of applicable units, and clarify the responsibilities of reward and punishment management.

Quality Promotion

Carried out quarterly quality management knowledge online answering activities;

Organized and implemented the first QC group presentation competition, recommended outstanding groups to participate in the central enterprise QC group competition organized by the SASAC, and win the third prize.

Developed a new training course on service awareness quality

Offered special training for service quality improvement such as director seminars and elite training camps to enhance specialization and professionalism.

Focused on service shortcomings and improved on-site handling capabilities of "the Chief Purser and the Purser"

Offered the training course Practices of the Chief Purser, and improved the on-site handling capabilities of the Chief Purser and the Purser.

Developed new courseware

Developed audio and video courseware such as "Doudou Radio" and "Getting to Know the Knowledge Base", with 12,360 hits. Continued to analyze passenger satisfaction data, dynamically explored passenger needs, and developed the special courses like the Professionalization of Air China Service Teams and the Five Questions and Five Answers on Professional Team Building.

Air China organized online company-wide training on the Professionalization of Air China Service Teams, and more than 8,000 people learned the course.

Wifi Network Platform

•      Achieved full operations of in-cabin wireless LAN on 359 aircraft, and provided air-ground connectivity for 16 A350 aircraft;

•      Revised 17 process management systems in three categories of platform operation, management and safety, and revised and optimized passenger presentation interface application products;

•      5,260,860 visitors accessed to the in-flight network platform, with an average platform access rate of 20.15%

Innovation Laboratory

Put the Air China In-flight Catering Satisfaction Analysis Visualization Platform into operation;

Brought the Intelligent Assistant into production, and completed the "Innovation of Media Content Update Mode in the Traditional Entertainment System";

The Innovation and Research Project of Aircraft Cabin Disinfection Products and the Air China Passenger Information Confirmation Service System of Third-Party Service Provider passed the acceptance check

E-commerce Platform

Completed the Air China APP in-flight catering reservation plan;

Launched the automatic application of service compensation;

Optimized the full-process luggage tracking function of the APP, optimized the data interface access logic, and supported the expansion of terminal and airline services;

Completed APP cloud environment construction, cloud service migration, and comprehensive up-

grade of APP architecture

Smart Knowledge Base

Completed the optimization of 2,773 FAQs in the Smart Knowledge Base, and maintained the accuracy rate of online customer service at a high level of 80%

Flight punctuality is the core of airline service quality and the key to improving customer satisfaction. Air China continued to improve the flight punctuality management process, established the goal to ensure flight punctuality, promoted the construction of a global ground flight assurance platform, and implemented daily flight assurance in an all-around way.

The Air China flight punctuality rate in 2021 reached 88.96% (According to the statistical calibre of the Civil Aviation Administration for Air China)

Operational Control

72-hour flight operation control

Next day flight planning

Emergency task handling

Implementation of flight operation plan

APP Upgrade

Enabled the "automatic standby" function to meet the demand for ticket purchases in peak seasons to the greatest extent;

Launched an app suitable for the elderly to help solving the problems of the elderly and other special groups when using intelligent technology;

Launched Air China electronic boarding pass in Huawei Wallet, and allowed the passengers to use Huawei eID for user identity authentication;

Launched the featured products of Winter Olympics Coupon for the first time, and opened a special "Red Tour" area;

Launched the Star Alliance transfer information service, and provided more abundant and clear transfer connection information for passengers with Star Alliance itineraries

Smart Travel Services

Continued to promote "paperless" convenient travel, with 118 terminals supporting

"paperless" services in 2021;

Strengthened the transfer service guarantee capability, launched the "Smart Transfer" project, and realized the omni-channel push function of transfer flight information;

Launched smart transfer services to provide AR/VR transfer guidance

In-flight Meals

Deeply cultivated meal boxes services;

Launched seasonal products of lunch boxes;

Launched the series of pocket meal

Full-process Luggage Tracking

Further improved the luggage status tracking service, and optimized the electronic luggage

receipt and luggage status display;

Advanced "smart" services, fully realized remote self-service check-in at domestic terminals, opened the full-process luggage tracking and inquiry service at seven stations, and provided the passenger inquiry service in nine routes

Inflight Products and Services

Launched the new blanket;

Launched a series of new interior products;

Optimized the quality of in-flight media content, and launched content areas based on traditional culture

Management Standards Updates

Revised the service policies such as refund and changes for injured and sick passengers;

Adjusted applicable ticket prices for children and unaccompanied minors;

Revised the refund service requirements for the passengers on the stretcher

Passenger Experience Enhancement

Canceled the Disclaimer Letter and used the Risk Declaration to remind passengers of travel risks

Online Booking Services

Launched an online special passenger service module on the official website and App to fulfill the

automatic booking often types of special services, such as mobility assistance

In-flight wheelchairs

Further transformed the mobility assistance configuration mode and replaced the original ground configuration mode with the inflight configuration

Infants and children Services

Optimized the automatic reservation for unaccompanied children;

Launched infant passenger protection on abnormal flights

On January 14, CA4235 took off from Chengdu Shuangliu Airport and arrived at Nanning Wuxu Airport on time, successfully guaranteed the transportation of hematopoietic stem cells, and built a warm air channel for passengers.

Information Management Committee

Data Management Office

Information Management Office

Subsidiaries

Administrative Organs

Management and Support Departments

Other Affiliates

Technical Support

•      Air China's data storage passed the third-level certification of the national information protection level system and obtained the ISO 27001 certificate and PCI DSS certificate at the same time;

•      Air China completed classification and protection work of the Air China APP and other systems;

•      Air China adopted strong encryption technologies to encrypt and store personal information and ensure data security through isolation technology

Management Assurance

•      Air China amended the multilingual privacy terms and updated them on relative platform promptly;

•      Air China categorized the data viewers in detail and further restricted the authority of viewing passenger information;

•      Air China established a data demand confirmation form and documented it in the form of a ledger following approval to ensure that data operation records could be queried and traced;

•      Air China continued to carry out publicity and education on the rule of law. It conducted special training on information security and privacy protection for employees following relevant laws and regulations such as the Criminal Law of the People's Republic of China, the Personal Information Protection Law of the People's Republic of China, and the Law on Public Security Administration Punishments to enhance employees' information security awareness

•      Partially anonymized the passenger's personal information during the service process to prevent accidental leakage of such information

•      Updated the terms of the privacy policy in a timely manner, and strictly observed the minimum necessary principle when collecting the information

•      Improved the itinerary protection function so that the user's itinerary could not be obtained by others and the passenger itinerary would not be maliciously altered after the itinerary protection was turned on

•      Improved the function of permanent account cancellation, and deleted personal information from the Air China database after the passenger cancelled the account perpetually

•      Encrypted the passenger's information during the transmission process to ensure the security of the data

Continuing with the improvement of the passenger complaint handling mechanism

Air China improved the systems like the Effective Complaint Management Regulations and the Service Remediation and Complaint Handling Management Regulations, studied the new version of the Complaint Management Regulations, and standardized the investigation and response standards for passenger complaints.

Improving the efficiency of handling passenger complaints and feedback

Air China established a global customer service center, the hotline "95583", which could provide a 7*24-hour multi-channel intelligent and full-process services for global travelers.

Making up for service shortcomings

Air China promulgated the Service Quality Monitoring and Management Measures, improved the Service Scenario Simulation Case Collection, and formed a closed-loop management of "teaching, guiding, checking, and testing" by strengthening scenario simulation exercises, assessments, etc.

Perfecting the refund process

During the pandemic, Air China developed an online electronic and in-kind compensation system, and launched the project for automatic application of service compensation, which greatly shortened the refund processing time.

Overall passenger satisfaction in 2021: 84.7 points

Overall satisfaction of Premium passengers: 85.2 points

Passenger satisfaction questionnaires recovered: 164,372

Passenger complaints received: 5,944

Complaint handling rate: 100%

Total employees of Air China: 88,395

Number of employees by employment type

Contracted employees: 82,061     92.8%

Dispatched employees/interns: 6,334    7.2%

Number of employees by gender

Male ：52,750     59.7%

Female：35,645    40.3%

Number of employees by age

Employees aged 35 years old and below：54,587    61.8%

Employees within 36-45 years old：21,188    24.0%

Employees within 46-60 years old：12,620     14.3%

Number of employees by region

Employees in China：85,852   97.1%

Employees Overseas：2,543    2.9%

Number of employees by profession：

Management and management support staff：10,856  12.3%

Marketing and sales：5,337   6.0%

Operation：4,531    5.1%

Ground handling：11,698   13.2%

Cabin service：23,382   26.5%

Logistics and support：6,964   7.9%

Flight crew：10,644   12.0%

Engineering and maintenance：13,146   14.9%

Information technology：809   0.9%

Others：1,028   1.2%

Number of employees by education

Master degree and above：3,877   4.4%

Undergraduate：47,458    53.7%

Junior college：26,079   29.5%

Technical secondary school and below：10,981   12.4%

Employee turnover by type

Contracted employees：4.0%

Dispatched employees/interns：0.6%

Employee turnover by gender

Male：2.2%

Female：2.3%

Number of employees by region

Domestic：4.5%

Overseas：0.1%

Employee turnover by age

Employees aged 35 years old and below：3.9%

Employees within 36-45 years old：0.5%

Employees within 46-60 years old：0.1%

Employee Salary and benefits

Air China's employee welfare programs included social insurance, housing provident fund, enterprise annuity, comprehensive medical insurance, etc. In 2021, the Company's enterprise annuity coverage rate for employees reached 94.5%. To reduce the impact of the COVID-19 pandemic on employees, Air China took timely countermeasures and provided subsidies to employees of front-line, the international offices, high pandemic risk position, as well as employees under quarantine and observation.

Employee services and communication

In 2021, Air China focused on service upgrades and optimization, and business model innovation to effectively respond to the new normal of pandemic prevention and control. It comprehensively enhanced the capability of human resources informatization construction. Centring on online business transformation, Air China achieved the electronic processing of personnel transfer orders, developed and applied the mobile service platform for employees, and improved the service experience for employees. Moreover, it continued to provide business guidance to employee service centres inside and outside Beijing, shared new working methods during the pandemic, upgraded the service capabilities of the official WeChat account platform, expanded the online business scope, and effectively improved internal service satisfaction.

Democratic management

Workers' Congress Performance

Proposals called for from employee representatives :48

Proposals with general comments: 35

Proposals filed :11

Proportion of employees joining trade unions: 92%

Average training hours per person (hours)

Senior management：125

Middle management：94

Staff：60

Male employees：52

Female employees：71

Training System Construction

Based on civil aviation laws：

Improving the training system for pilots, flight attendants, flight security guards and flight dispatchers

Based on the qualification requirements of civil aviation transportation：

Improving the training system for dangerous goods transportation and aviation security

Based on Air China's production needs：

Improving the training system for air transport personnel, expatriate employees and business personnel

Higher-level Organization Training

•      Combined with the requirements for building a high-quality professional cadre talent team in the new era, Air China selected and organized 37 middle and senior management personnel to participate in 32 training classes organized by higher-level organizations

Senior Manager Training

•      In cooperation with Renmin University of China for the first time, Air China organized the State-owned Enterprise Management Training Program for senior managers by relying on the advantages of the university and faculty platform, benefitting a total of 38 trainees;

•      Furthermore, it continued to organize the Excellent Operation Training Program for senior managers, which benefited a total of 33 trainees

Training for Young Cadres and Grassroots Managers

•      By using the online learning platform, Air China organized and implemented off-the-job online training on the seven habits of high-efficiency people through livestreaming. A total of 35 young cadres participated in the training;

•      Air China also organized and implemented three sessions of basic rotation training courses for young cadres, benefiting a total of 72 young cadres;

•      Moreover, Air China also constructed the grassroots management training system, and organized 22 grassroots cadre training sessions, which benefited a total of 440 grassroots cadres. To be specific, there were eight sessions of leadership training camp for managers, seven sessions of training for supervisors, and seven sessions of promotion courses for Pilot, Co-pilot, Chief Purser, and Purser

Online Training

•      Air China launched a total of 13 series online special courses, including the management innovation, and brief history of state-owned enterprises, and updated 268 lessons in a total of 105 categories;

•      Air China iteratively improved the online learning platform, and pushed 28 articles throughout the year, with 101,549 hits in total

The program of High Education for Civil Aviation Workers

On July 23, the first graduation ceremony for the program of High Education for Civil Aviation Workers, co-organized by the Civil Aviation Administration of China and the Open University of China, was successfully held. A total of 174 Air China employees successfully graduated from the University: 3 employees won the honorary title of Excellent Graduate; the other 3 employees won the honorary title of the 2020

Outstanding Student; Air China's Trade Union was awarded the title of the Advanced Supported Learning Unit; 8 grass-roots trade union cadres were awarded the title of the Advanced Individual

in Supported Learning.

Since 2018, the supported learning program had benefited 1,039 workers

Specifically, there were 312 students in the class of 2018, 425 students in the class of 2019, and 302 students in the class of 2020.

A total of 4 national-level and civil aviation-level honorary winners and 8 civil aviation employees in need according to the files of the trade unions received full or half-exempt supported learning subsidies

A total of 1,579 workers won the semester scholarship of RMB 1.06 million granted by the civil aviation trade union

Air China ranked No. 1 in the civil aviation system in the number of applicants, graduates and award winners

Held 32 micro-classes

Organized 136 sessions of thematic training

Organized 20 sessions of new employee coaching

Answered a total of 2,925 employee calls through the EAP hotline

Provided 3,001 hours of hotline consultation

Conducted 45 online and offline on-site consultations

Offered 94 sessions of group coaching

Organized 42 thematic activities

From April 25 to May 1, Air China organized a series of activities under the 19th Publicity week for Code of Occupational Disease Prevention.

On December 10, Air China convened an online video training meeting on occupational health management, and more than 70

full-time and part-time managers from 27 units participated in the training.

In 2021, Air China lost 10,337 working days due to work-related injuries.

Implementing the health examination of employees

On December 1：

By working together with Peking University Third Hospital, the Company launched the Air China Employee Health Management Plan on the Wings of Air China 3.0 platform, creating a high-quality, efficient, professional, forward-looking and continuously preventive health management platform for employees.

In 2021：

Air China completed the physical examinations of 14,600 air crew members, including 4,712 pilots.

In 2021：

Air China completed the "one-stop" physical examinations of 14,100 employees in Air China headquarters in Beijing.

During the Spring Festival and Summer Holiday, visited more than 40 grassroots units and distributed funds about RMB 18.54 million

Offered precise care for employees in need, and distributed RMB 550,000 to 256 employees in need in the civil aviation industry and in the Company

The mutual aid subsidy (Issue 6) for employees benefited 154 people, totalling RMB 3.08 million

Supplemented Mutual Aid subsidy RMB 3 million, ensuring the treatment for sick employees not

decreased

Distributed mutual aid subsidy (Issue 7) for 93 female employees, totalling RMB 1.86 million

Civil Aviation's mutual aid subsidy (Issue 7) for female employees benefited 85 people,

totalling RMB 1.04 million

Air China launched the micro-photography activity under the theme of "New Year's Eve of the Civil Aviation People"

Through the micro-photography activity under the theme of "New Year's Eve of the Civil Aviation People", Air China employees submitted a total of 3,964 photos to record their own Spring Festival stories, and demonstrate their splendid life.

Air China set up a sports activity centre for employees

In April 2021, Air China opened the recreational and sports activity centre for employees to create a good atmosphere of healthy life and happy work.

Invested RMB 40.773 million of free assistance funds, and carried out 21 assistance projects throughout the year

Organized employees to purchase RMB 54.07 million of agro-products and husbandry products in the assisted areas

Air China assisted in selling RMB 10.88 million of agro-products, and introduced RMB 677 thousand of assistance funds

Air China trained 1,314 grassroots cadres and 1,275 technicians

Air China completed the handover of 3 temporary cadres in paired-up assistance areas, and dispatched 2 more outstanding Youth League cadres to work in the paired-up assistance areas.

Air China provided independently developed in-flight meals on some routes and lounges, and offered Zhaoping Organic Tea on some routes to promote the popularity of "Panda Sheep" from the Sunite Right Banner and Zhaoping Tea.

Air China actively helped local enterprises building their own e-commerce platforms and expand product sales channels.

With the help of Air China, Zhaoping Jiangjunfeng Group insisted on leading the high-quality development of the tea industry with technological innovation. Its subsidiary was recognized as a "National High-Tech Enterprise", playing an exemplary and leading role in the transformation and upgrade of the local tea industry.

"Sunite Sheep" and "Sunite Bactrian Camel" from Sunite Right Banner became China's Geographical Indication Trademarks, providing strong support for effectively building the livestock industry chain and livestock product brands.

Air China continued to carry out the "Air China Blue Sky Education Development Fund" project for youth study, benefiting 150 outstanding local teachers and 300 students with good academic performance.

Air China built a special school in Zhaoping to benefit all families with disabled children in Zhaoping County.

In 2021, Air China continued with the music assistance project, and the newly written experimental textbook was put into use. It offered 15 face-to-face music lessons and 12 online lessons throughout the year in Jiangkou Primary School in Zhaoping County, Guangxi.

Air China carried out various training projects, cooperated with Beijing Normal University Education and Training Centre on Rural ecological revitalization teacher training, and cultivated a group of leading teachers in rural areas.

Air China offered a high-yield cultivation technology training course for Camellia oleifera in Zhaoping County, Guangxi

Air China provided a special training course on ecological civilization construction for leading cadres in Zhaoping County, Guangxi

Air China provided professional certification training for chefs in Sunite Right Banner, Inner Mongolia

Air China established a support and co-construction mechanism with Ulanmuchi in Sunite Right Banner, whom played an important role in the cultural dissemination on the grassland

Air China built a new pastoral cultural service station in Sunite Right Banner to create a characteristic cultural platform with comprehensive cultural service capabilities

Air China invited Ms. Han Jin, the founder of Mom Philosophy, to carry out "Mom Classroom" training, guiding local parents to learn skills and changing thought to build a good family style

Air China cooperated with the China Environmental Protection Foundation to set up the Sunite Right Banner Ecological Poverty Alleviation Fund, and the project team was successively granted 3 varieties of nationally approved buffalo grass seeds, and won the second prize of Liang Xi Forestry Science and Technology Award

Air China continued with the infrastructure construction projects in Jiangkou Village, Zhaoping County, improved the living environment for more than 5,000 villagers, and created a beautiful village

Air China carried out the joint construction of Gold phoenix flight crew and other two organizations in paired-up assistance areas, and transformed the red gene of flag carrier into a firm driving force for rural revitalization.

Making every effort to ensure the participation of Chinese athletes in the Tokyo Olympic and Paralympic Games

From July 10 to September 6, as the official aviation transportation partner of the Chinese sports delegation for the 2021 Tokyo Olympic and Paralympic Games, Air China made active deployments, strictly prevented and controlled the pandemic, guaranteed the quality of services, and successfully completed the transport support work of the Chinese delegation for the 2021 Tokyo Olympic and Paralympic Games.

During the Tokyo Olympic and Paralympic period, Air China organized 26 charter flights to transport 1,906 passengers; during the Tokyo Paralympics, it provided 7 charter flights to transport

896 passengers.

Fully supporting the disaster relief in Henan Province

In July, Henan and other places suffered heavy rainfall, and cities like Zhengzhou were caught in serious waterlogging, so the flood control situation was very serious. Air China immediately launched an emergency response plan, actively deployed capacity, and ensured smooth air passages for personnel rescue and material transportation.

On July 22, Air China donated RMB 20 million to the Henan Charity General Federation for disaster relief and post-disaster reconstruction caused by heavy rainstorms, providing support and

assistance to the people in the disaster areas.

Escorting Tibetan children with congenital heart disease for medical treatment

From December 3 to 8, through close cooperation with the Red Cross Foundation of China and Zhengzhou No. 7 People's Hospital, Air China provided free round-trip transportation guarantee services for 22 children with congenital heart disease and 25 accompanying family members who went to Zhengzhou, Henan Province for medical examination and surgical treatment, and successfully completed the relay operation of  "Angel's Journey - Screening and Rescuing Action for Children with Congenital Heart Disease in Tibet".

Guaranteeing the flight of Tibetan compatriots assisted by the Kashin-Beck Disease Project

On March 2, Air China Chongqing Branch successfully completed the transportation guarantee task for 12 Tibetan compatriots assisted by the Kashin-Beck Disease Project from Chongqing to Beijing. This project was a public welfare project of the China Overseas-Educated Scholars Development Foundation. After receiving the demand, the Chongqing Branch carefully formulated a support plan to provide these special passengers with meticulous and warm flight services.

Air China carried out 136 voluntary service activities for pandemic prevention and control and

passenger service in the terminal building, involving 1,356 employees and benefiting over 190,000 passengers.

Volunteers from Chongqing Branch facilitated rural revitalization

From August 29 to September 4, Chongqing Branch organized representatives to carry out a 7-day rural revitalization volunteer activity in Xianyun Village, Wanzhou, Chongqing, and to engage in a variety of volunteer service activities such as Party history learning and exchange, hidden road danger investigation, aviation classroom, voluntary haircutting, patriotic film exhibition, and performances, etc,

Volunteers from Tianjin Branch visited the elderly in the nursing home

On April 27th, Tianjin Branch organized the volunteer service activity. Young volunteers went to the Kunlun Nursing Home to send anti-pandemic supplies and warm care for the elderly.