Houston, Texas – October 14, 2004 — PROS Revenue Management, a world leader in pricing and revenue optimization science and software, and the pioneer and dominant provider of revenue optimization solutions to the travel and transportation industry, optimizing millions of pricing decisions every day for more than 100 customers in 39 countries, today announced that Hainan Airlines, has licensed the PROS 5 Revenue Management System.

The PROS 5 Revenue Management System is a robust, state-of-the-art leg/segment revenue optimization system that provides the most profitable mix of fare-class allocations, while minimizing losses from discounted, spoiled, or cancelled seats.

PROS 5 has built-in flexibility to meet the needs of any airline, with controls allowing airlines to calibrate its forecasting, optimization, accessibility, and reporting engines for your unique conditions. Once an airline has cut over to PROS 5, they can directly modify its parameters and add their own inputs so forecasts reflect their unique environment and the unique market knowledge of their analysts.

PROS 5 maintains comprehensive and accurate relational databases, based on historical data from a carrier’s legacy systems, to create a clear picture of demand for every past, current, and scheduled flight in their network.

The real strength of PROS 5 is in its creative decision support. Operating at the fare class level, PROS 5 automatically chooses among many forecasting models for accurate predictions of a given flight’s booking patterns. It then recommends optimal inventory allocations and fare class limits. PROS 5 instills the management-by-exception approach to revenue management operations. For flights whose demand characteristics lie within user-set parameters, PROS’ AutoPilot functionality can automatically upload authorization levels to the reservations system. Controllers only analyze those flights that have been flagged to indicate their special optimization potential.

PROS 5 is not, however, a so-called “black box.” PROS 5 allows the user to examine the revenue consequences of any recommendation, presenting schedule, flight, compartment, and class-level results in several different formats. Users can even manually change recommendations and see the effects through simulated “what-if” optimizations, deciding on the best strategy and testing hypotheses before approving the optimized values.

“The PROS 5 Revenue Management System will give Hainan Airlines the ability to effectively manage our seat inventory. Hainan Airlines is a fast-growing carrier with an expanding network and great services. The introduction of the state-of-the-art RM system will further increase our competitiveness in the domestic as well as international market,” says Mr. Yang Jianhong, Chief marketing officer of Hainan Airlines.

“We are honored to have a relationship with Hainan,” says Benson Yuen, president of PROS travel and transportation group, “The revenue management solution that PROS is providing to Hainan will generate incremental revenue and will increase passenger satisfaction.”

About Hainan

Hainan Airlines Company Limited (hereinafter called HNA) is a civil aviation enterprise with both A and B shares issued. The company was established by the restructuring of the former Hainan provincial Airlines Company in January 1993,and started its operation on May 2nd, 1993. The registered address is No.168 Airport Road, Haikou, Hainan province, and the legal representative is Mr. Chen Feng, Chairman, and the current CEO is Mr. Zhu Yimin.

Up to Feb.2004, Hainan Airlines has 3420 employees among whom there are 735 pilots, 543 engineers, and 487 flight attendants. The education background of the employees is composed of 39 postgraduates, 1180 four-year university graduates.

Hainan Airlines Company Ltd. is the leading enterprise of the air transportation block of HNA Group, and is entrusted to manage and coordinate the other five affiliated enterprises, Deer Jet Company Ltd., Chang’an Airlines Company Ltd., Shanxi Airlines, China Xinhua Airlines Company Ltd., and Yangtze River Express Company. The number of the total fleet in HNA Group is 98 aircraft, ranging from 10 to 200 seats and applicable for trunk routes, regional routes and business charter services, among which are 44 Boeing 737-300/400/700/800s,4 Beoing 767-300, 27 Donier 328-300s, 6 Hawker88XPs, 1 Gulfstream business jet, 2 Dash8-900s and 10 Y7s and 4 737-300 QC.

HNA has established Haikou, Beijing, Ningbo, Sanya, Xi’an, Taiyuan ,Tianjin and Urumchi as its aviation bases. HNA ’s over 480 domestic routes radiate out to more than 70 major cities in China, and the market share in Hainan has reached 50% as the largest local carrier. In terms of the density of routes and flights, the company ranks NO.4 among the carriers in China. In November 1999, HNA gained the operational permission for scheduled and non-scheduled international flights from Hainan province to Southeast Asia and the neighboring countries. At present, HNA has started to operate the international flights from Sanya to Seoul, Haikou to Bangkok, and the charter flight from Haikou to Osaka,from Haikou to Singapore and from Haikou to Kua1a Lumpur.

HNA has changed the traditional conception that airlines service is only restricted in the cabin, the company showed a brand-new conception “Air Products” for customers, and took the lead in introducing the new service principle of “Whole-course series products and customized service” with the promises to offer customers the “seamless” services.

HNA has successfully passed the examination by CAAC121 Part, and also has become the first airline that has obtained the ISO9000 accreditation for its whole operation in China. With the rapid development in the business field, HNA has grown up into a leading airlines company and is trying to become the first airline to be chosen by passengers in the future.

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PROS Corporate Communications

email: info@prospricing

phone: 713.335.5151 / fax: 713.335.8144