Beijing Sheng Mao Sen Investment Group Co,. Ltd. and Beijing Zheng Qi Jia Jing Investment Guarantee Co,. Ltd. made a joint application to Civil Aviation Administration of China (CAAC) to establish a new airline carrier named Kunlun International Airlines. earlier this year, CAAC then published primary details of the application on its official website (URL: www.caac.gov.cn) based on the relevant provision under the Regulation on Operional Permission for Public Air Transportation Enterprises. CAAC has also completed the preliminary assessment of the concerned materials that had been submitted.

However, the personnel in charge the set-up of Kunlun International Airlines rescinded the set-up application submitted to CAAC earlier citing 'to request withdrawing the set-up application due to a situation change in shareholders' operational issues, thus the set-up of Kunlun International Airlines cannot be continued' on 27th July 2006. (Translation: CARNOC - Tao Mengping)

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