Pricing Policies for the CNACG Transactions. The consideration of any specific CNACG Transactions shall be agreed between the Group and CNACG Group in accordance with the pricing policies set forth below on a case-by-case basis: • The prices for the ground support services will be negotiated and determined by both parties on an arm’s length basis, after taking into account various factors, including the guidance from the Civil Aviation Administration of the PRC and the International Air Transport Association on the service prices and other terms for ground support services, the prevailing market prices, the costs of human resources and the quality of services. • The prices for aircraft repair and maintenance services, and administrative management services will be negotiated and determined by both parties on an arm’s length basis with reference to comparable market prices for the same or similar type of services provided by independent third parties after taking into account other relevant factors, including the quality of services and the special needs of the parties. • For finance lease and operating lease services, the amount payable by the Group to the CNACG Group will be subject to the procurement prices of the leased items, the financing costs, the term of leases, the nature and availability of the lease items and comparable lease arrangement fees, as applicable. For each individual CNACG Transaction, to the extent available, designated personnel of the Group will be responsible for obtaining and verifying the quotation and terms for the same or similar type of services available from independent third parties. In general, inquires on quotation and terms will be made to at least two independent third parties by e-mail, facsimile or telephone.
Pricing Policies for the CNACG Transactions. The consideration of any specific CNACG Transactions shall be agreed on arm’s length negotiations between the Group and the CNACG Group and on normal commercial terms, which shall be determined in accordance with the pricing policies set forth below on a case-by-case basis. • Finance and operating lease services: The final transaction price will be determined on arm’s length negotiations between both parties with reference to the prices for the same type of lease services offered by independent third parties and after taking into account certain factors. Such factors include purchasing price of the leasing subject, interest rate and arrangement fees (if any) (for finance lease), rental fee (for operating lease), the lease terms, the feature of the leasing subject and the comparable market rental prices. The final transaction price should not be higher than the transaction prices offered by at least two independent third parties on the same conditions. • Ground support services and other services: The pricing policies for ground support services and other services provided to or by the Group are set forth below:
