China Airlines Ltd.

China Airlines Ltd. is principally engaged in the provision of airline services. The Company offers two major air transport services: passenger transport services, which accounted for 53% of its total sales during the year ended December 31, 2007, and cargo transport services, which accounted for 42% of its total sales. As of December 31, 2007, the Company had a total of 68 aircrafts, including 48 passenger jets and 20 freighters. The Company's passenger and cargo transport services include scheduled flights, charter flights and extra flights. The Company's passenger transport services cover Trans-Pacific, Europe, Southeast Asia, Taiwan, Hong Kong, Northeast Asia and Australia. The Company's cargo transport services cover Trans-Pacific, Europe, Southeast Asia, Northeast Asia and Australia. In 2007, the Company provided air transport services for approximately 10.3 million passengers.