Description of the ACC Transactions. Pursuant to the New ACC Framework Agreement, the Group will provide the following services to the ACC Group: • provision of bellyhold space of the passenger aircraft operated by the Company; • ground support services, such as airport apron services and aircraft cabin cleansing services; and • other services, including aircraft maintenance engineering services, engine and other aircraft related materials lease services, property lease services (including the lease of certain GAC Regulated Property) and labour management services. Pursuant to the New ACC Framework Agreement, the ACC Group will provide the following services to the Group: • marketing and sales services of bellyhold space provided by the Company; • ground support services, such as cargo and mail ground loading and unloading and security inspection services; • other services, including engine and other aircraft related material lease services and property lease services. With respect to engine and other aircraft related material lease services and property lease services, to the extent that the Group or the ACC Group possesses suitable engines, aircraft related materials or premises that could meet the operating needs of the Group or the ACC Group from time to time, the Group or the ACC Group may enter into lease agreements with the other party pursuant to the New ACC Framework Agreement.
Description of the ACC Transactions. The ACC Transactions contemplated under the 2022 ACC Framework Agreement are as follows: • Exclusive operation of the Passenger Aircraft Cargo Business: In order to further address the issue of business competition and optimize transaction structure, after friendly negotiation between both parties, the Group and the ACC Group have determined to carry out a long-term collaboration for the Passenger Aircraft Cargo Business under an exclusive operating model. The entire Passenger Aircraft Cargo Business of the Group will be operated exclusively by the ACC Group, and the ACC Group shall undertake the overall responsibilities for transporting the cargos to the consignors with respect to the cargos which are transported through the passenger aircraft. The term of the exclusive operation of the Passenger Aircraft Cargo Business between the Company and the ACC Group commences from the effective date of the 2022 ACC Framework Agreement and ends on 31 December 2034. The commencement date of the term of the exclusive operation of the Passenger Aircraft Cargo Business between the airlines controlled by the Group and the ACC Group shall be subject to the written agreement entered into between such airlines and ACC Group, if otherwise specified. Upon expiry of the exclusive operation term, the parties may determine new exclusive operation term through friendly negotiation. • Ground support services and other services: The ground support services and other services provided by the Group to the ACC Group include but are not limited to operation support services, IT sharing services, comprehensive support services, engine and aircraft-related materials sharing services, retiree management services, training services, human resources services (including general, servicing and information services in respect of personnel employment, archival information, salaries and benefits, social insurance and employee services), and procurement and maintenance services. The ground support services and other services provided by the ACC Group to the Group include but are not limited to ground support services (cargo terminal services and airport apron services), container and pallet management services, engine and aircraft-related materials sharing services. In respect of the engine and aircraft-related materials sharing services between the Group and the ACC Group, they mainly involve the provision of common engine and aircraft-related materials by the other party when one party’s own e...
