Establishment of Dragon Aviation Leasing Company Limited

November 11th, 2006, China Aviation Supplies Import & Export Group Corporation (CASGC), AerCap, and Calyon Airfinance, are pleased to announce that they have agreed to jointly invest in a new operating lease venture initially dedicated to the People’s Republic of China market.

The venture comprises Dragon Aviation Leasing Company Limited, based in Beijing, PRC, and AerDragon Aviation Partners, based in Shannon, Ireland. The companies have been created to respond to the growing demand for aircraft in the world, especially in China and other Asian countries, and will initially focus their activities in narrowbody aircraft.

According to estimates by airframe manufacturers, the Chinese domestic aviation market will require up to 2600 additional aircraft in the next 20 years. Mr Li Hai, Chairman of the CASGC commented: " We are very pleased about the joint commitment of three of the major players in aviation finance in this growing market. Our focus on this market will bring additional benefits to the venture’s future customers and provides the opportunity for rapid growth and profitability for all stakeholders through the development of the Chinese aviation leasing market". The new venture expects to build a portfolio of $1billion worth of aircraft in the next few years.

Each partner will contribute its own expertise in developing the venture, CASGC through its key position in the Chinese aviation market, AerCap through the management of the aircraft, and Calyon as one of the key institutions in the aviation financing market.