April 14, 2004, Taipei, Taiwan- China Airlines and Connexion by Boeing demonstrated in-flight Internet connectivity in Taipei on April 13. The broadband data and entertainment service will be installed on CAL!|s fleet of aircraft beginning in late 2004. Following installation, passengers will be able to read E-mail and browse the web when using their computers on board an aircraft.

!¡±The in-flight Internet connectivity will not only provide passengers with the ability to handle business and other secured information, but it will also help airlines get updated weather, airport and aircraft information,!¡L said Yun-ling Lee, Chairman of China Airlines. !¡±The Connexion system can provide real time connectivity to maintenance bases and aircraft manufacturers, for more effective flight management.!¡L

By installing antenna on aircraft, the Connexion system brings high-speed Internet connectivity to in-flight users via satellites and ground operation centers. In the future, passengers using laptop computers with wireless network cards can enjoy high-speed access to the Internet.

China Airlines has designed various fee bases for the different needs of passengers. Once the system is installed, passengers can choose to pay a fixed access fee of US$ 29.95 for each sector they travel, or they can choose to pay US$ 9.95 for the first 30-minute access and reasonable add-on if the usage continues.

China Airlines signed a Letter of Intent with Connexion by Boeing on December 31, 2003. CAL will be the first airline in Taiwan, and one of the first in Asia, to introduce this cutting-edge system. Initially, the agreement with Connexion will cover CAL!|s long-haul fleet, including B747-400 and A340-300 aircraft. The agreement outlines connectivity on certain long-haul flights between Taipei and Frankfurt and Rome. Service from Taipei to North America will be available from May 2005 when ground connectivity facilities are installed.

Connexion by Boeing is a mobile information services provider that brings broadband Internet, data and entertainment connectivity to travelers. Lufthansa was the first carrier to introduce this system. In addition to China Airlines, Japan Airlines, All Nippon Airways and Singapore Airlines are the other Asian carriers that have announced their intention to install the Connexion by Boeing service.