Cathay Pacific Airways Limited and Air China Cargo on April 28, 2026 by way of a written confirmation agreed to update the scope of the Service Arrangements under the Framework Agreement which will apply during the renewal term. The Service Arrangements may from time to time be provided by and received by members of Cathay Group in its ordinary and usual course of business with members of Air China Cargo Group. Pursuant to the terms of the Framework Agreement, the Framework Agreement will automatically renew for successive three year terms after the initial term which will expire on 31st December 2026.
Accordingly, the Framework Agreement will automatically renew for a term of three years from 1st January 2027 to 31st December 2029.Service Arrangements: The Service Arrangements are or will be carried out under the following Relevant Agreements: 1) cargo sales agent appointment agreement between the Company and CAE for the appointment of CAE as the Company's cargo sales agent; 2) block space agreement between the Company, as cargo space provider, and CAE, as agent of the Company for the sale of cargo spaces to end customers for the Hong Kong--India cargo route; 3) IATA standard ground handling agreement between the Company and Chengdu CNAC Cargo Terminal (as novated to Air China Cargo) for the provision of cargo-related ground services at Chengdu Shuangliu International Airport by Air China Cargo; 4) IATA standard ground handling service agreement between AHK and Chengdu CNAC Cargo Terminal (as novated to Air China Cargo) for cargo-related ground services at Chengdu Shuangliu International Airport by Air China Cargo; 5) IATA standard ground handling agreement between the Company and Air China Cargo for cargo-related ground services at Beijing Capital International Airport by Air China Cargo; 6) IATA standard ground handling agreement between AHK and Air China Cargo for cargo-related ground services at Beijing Capital International Airport by Air China Cargo; 7) software services agreement between Global Logistics System (HK) Company Limited, a wholly-owned subsidiary of the Company, and CAE for the provision of the Ezycargo software services to CAE for booking, tracking and tracing air cargo transport; 8) code sharing agreements between the Company and Air China Cargo for the sharing of freight capacity between the Company and Air China Cargo; 9) cargo prorate agreement between the Company and Air China Cargo for the sharing of freight costs between the Company and Air China Cargo through the payment of fixed prorate amounts per kilogram of carriage; 10) cargo terminal lease agreement between the Company and Air China Cargo for the lease of a cargo terminal space at Chengdu Shuangliu International Airport; 11) office lease agreement between Cathay Group and Air China Cargo for the lease of an office premise in Beijing. Pricing terms: 1) Purchase of services: For services received by Cathay Group, Transactions are negotiated on an arm's length basis, and are sourced through a procurement basis. Proposals are requested from Air China Cargo Group and other service providers.
The preferred supplier is selected based on various factors, including price, reliability, expertise, and experience. 2) Sale of services: For services provided by Cathay Group, Transaction terms are established through arm's length negotiations. These terms are determined with reference to (i) the fees charged by independent third-party service providers to Cathay Group for the same type of services, and (ii) the service fees charged by Cathay Group to independent third- party customers for comparable services.
