On August 29, East China Regional Administration of CAAC (Civil Aviation Administration of China) published verdicts of the official investigation into the incident that Juneyao Airlines's flight HO1112 refused to give way to another flight with MAYDAY declaration on August 13, 2011. Juneyao Airlines makes the following statement:

1. The behavior of flight HO1112 cockpit crew's failing to follow the ATC instructions on Aug. 13 was wrong for any reason. Both flight HO1112's captain and co-pilot have been aware of their mistakes and apologized to the involving parties in their individual report.

2. Juneyao Airlines apologizes for the negative effects brought to the related parties, and expresses thanks to the public and media for their supervision and care.

3. Juneyao Airlines will firmly implement CAAC's verdicts.

4. Juneyao Airlines will terminate the labor contract with the captain and suspend the co-pilot's flight permit for 6 months.

5. Juneyao Airlines will draw lessons from the incident and make great efforts to improve their work, further educating all their pilots of strict implementation of ATC instructions and training all their foreign pilots on strictly following China's civil aviation rules and regulations. Juneyao commits to the public that the carrier will strictly adhere to safety first policy, resolutely safeguard customers' benefits and provide quality service with all sincerity.

Juneyao Airlines Co., Ltd.

August 30, 2011

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