China Airlines was selected as one of the top three companies in Taiwan by the Corporate Governance Asia Annual Recognition Awards 2006, an event held by Corporate Governance Asia magazine. Other Taiwanese companies on the list were TSMC and AU Optronics Corp. This is the second year that CAL was rated by international media as the best company in Taiwan for corporate governance.

Corporate Governance Asia is a Hong Kong-based journal specializing in corporate governance in Asia, and most of its readers are business and finance experts. This is the second year that the awards were issued by the magazine. The selection was based on the criteria that the company must have an excellent track record in corporate governance, it must have been involved in a specific publicly-known activity directly related to improving or enhancing its corporate governance during the previous 12 months, and it must have implemented significant and specific governance reforms.

For the award, the journal spent six months researching 6,000 companies, and ranked the companies according to five principles: board and management practices; media recognition; business ethics and corporate social responsibilities; investor transparency; and finance. An award ceremony was held in the Hong Kong JW Marriott Hotel on September 20. Other famous awardees included Singapore Airlines, Swire Pacific and Lenovo.

CAL is famous internationally for its corporate governance. In 2005, world-renowned Euromoney magazine ranked CAL in its list of Top 100 Companies in Emerging Markets, and it also ranked CAL as the top company in corporate governance among all Taiwanese companies. Winning the corporate governance award this year is another reflection of the international recognition that China Airlines has earned in this all-important area. The contributions of the CAL board are one of the keys to the company's continuing excellence and ongoing improvement in the area of corporate governance.