Dear passengers:

In order to meet the travel needs of the passengers and reduce the flight seat consumption caused by the temporary cancellation of travel plans of some passengers, we may make appropriate overbooking on some flights prone to seat consumption to ensure that more passengers can take the ideal flight. We will reasonably control the overbooking rate of flights, so it is rare that passengers who have reserved seats on the flight will not be able to travel. Should such a situation occur, we will compensate overbooked passengers accordingly and provide corresponding services. Our practices regarding overbooking are as follows:

One. Ways to report flight overbooking information

1. We will publish this open letter at the own ticket office, the official website of Shandong Airlines and the ground service link.

2. When you purchase tickets, we will publicly solicit volunteers in the company's own ticket sales channels, and when each flight is overbooked, we will actively solicit volunteers on site.

3. You may also call Shandong Airlines Service Hotline 95369 or register at our direct ticket offices to apply to become a voluntary passenger.

4. When a flight is actually overbooked, our staff will first contact or solicit volunteer who voluntarily gives up his/her seat, and provide financial compensation and corresponding services to the volunteer.

5. When the number of volunteers on a flight is large and exceeds our actual needs, we will give priority to compensation and services for the top volunteers in the order in which you become volunteers.

Two. Priority boarding principle after overbooked flight

In the absence of enough volunteers, we have developed priority boarding principles:

(a) Passengers on official travel for state emergency missions

(b) Staff members of Organ Procurement Organizations (OPO) carrying human donor organs

(c) Elderly, weak, ill, disabled, and pregnant passengers with special service needs, as well as unaccompanied minors, who have been approved by Shandong Airlines and arranged for in advance

(d) Passengers who can provide supporting documents proving urgent travel due to extraordinary hardships

(e) Active-duty Chinese military personnel, police officers and fire and rescue personnel with valid identity certificates

(f) First Class and Business Class passengers

(g) Platinum, Gold and Silver Card members of PhoenixMiles

(h) Passengers holding connecting tickets, especially those on international connecting flights

Three. Actual overbooking compensation and service standards

1. If you choose to refund your ticket

We will treat the refund as an involuntary refund and the refund fee will be waived. At the same time, we will provide you with corresponding compensation in accordance with the published standards.

2. If you choose to take a subsequent flight

We will change you to the earliest flight with available seats. If the subsequent flight is a Shandong Airlines’ flight, we will change it for you free of charge; If the subsequent flight is a flight of another company, we will take back your original ticket and transfer the difference to the other company's flight. At the same time, we will provide you with corresponding compensation in accordance with the published standards.

3. Ground service support

If the planned departure time of the scheduled flight exceeds the actual departure time of the original flight by more than 4 hours (not included) or belongs to the next day's flight, we will follow the company's abnormal flight schedule while you wait for the subsequent flight to take place.

Compensation Standards for Passengers Denied Boarding Due to Flight Overbooking of Shandong Airlines Co., Ltd.

Note:

(1) If the relevant laws and regulations of the country or region where the flight is overbooked specify the compensation standard for overbooking, economic compensation shall be given in accordance with the applicable laws of the country or region.

(2) Child passengers shall receive compensation under identical standards applicable to adult passengers travelling in the same cabin class; compensation payable to infant passengers denied boarding due to flight overbooking shall be fifty percent (50%) of the compensation amount for adult passengers under identical circumstances.

(3) Relatives, legal guardians or accompanying adult passengers may collect compensation on behalf of passengers unable to claim compensation in person, including infants, children, senior passengers, passengers with intellectual and mental disabilities, and foreign nationals.

(4) You can choose one of the three compensation standards of voucher, consumable mileage, currency, and free ticket, and you cannot change the other compensation method after selection.

Four Entry into Force and Modifications

1. This Open Letter shall take effect and be implemented as of July 1, 2026. The Flight Overbooking Open Letter to All Passengers issued and implemented by Shandong Airlines Co., Ltd. in April 2023 shall be repealed simultaneously. All flights departing on or after July 1, 2026 shall be governed by these updated compensation standards.

2. This Open Letter constitutes an integral part of the General Conditions of Carriage for Passengers and Baggage of Shandong Airlines Co., Ltd.; matters covered herein shall be governed preferentially by the provisions of this Open Letter, while any matters not stipulated under this Open Letter shall be subject to the provisions set forth in the aforesaid General Conditions of Carriage for Passengers and Baggage of Shandong Airlines Co., Ltd.

3.  In case of any discrepancy between the two language versions, the Chinese version shall prevail.