China Eastern Airlines

China Eastern Airlines
中国东方航空公司
Zhōngguó Dōngfāng Hángkōng Gōngsī
IATA ICAO Callsign
MU CES CHINA EASTERN
Founded 25 June 1988 (1988-06-25)
Hubs
Secondary hubs
Focus cities
Frequent-flyer program Eastern Miles
Alliance SkyTeam
Subsidiaries
Fleet size 469
Destinations 217
Company slogan World-Class Hospitality with Eastern Charm (世界品位,东方魅力)
Parent company SASAC
Headquarters Shanghai Hongqiao International Airport
Shanghai, China
Key people
  • Liu Shaoyong (Chairman)
  • Ma Xulun (Vice Chairman & President)
Revenue Increase CN¥85.25 billion (2012)[1]
Operating income Increase CN¥4.228 billion (2012)[1]
Net income Decrease CN¥2.808 billion (2012)[1]
Total assets Increase CN¥123.82 billion (2012)[1]
Total equity Increase CN¥22.93 billion (2012)[1]
Employees 80,000 (March, 2016)
Website ceair.com
China Eastern Airlines
Simplified Chinese 中国东方航空公司
Traditional Chinese 中國東方航空公司
Current headquarters at Shanghai Hongqiao Airport, shared with Shanghai Airlines

China Eastern Airlines Corporation Limited (simplified Chinese: 中国东方航空公司; traditional Chinese: 中國東方航空公司, colloquially known as 东航/東航) is an airline headquartered in the China Eastern Airlines Building,[2] on the grounds of Shanghai Hongqiao International Airport in Changning District, Shanghai, China.[3] It is a major Chinese airline operating international, domestic and regional routes. Its main hubs are at Shanghai Pudong International Airport and Shanghai Hongqiao International Airport,[4] with secondary hubs at Beijing Capital International Airport, Kunming Changshui International Airport and Xi'an Xianyang International Airport.

China Eastern Airlines is China's second-largest carrier by passenger numbers. China Eastern and its subsidiary Shanghai Airlines became the 14th member of SkyTeam on 21 June 2011.[5] The parent company of China Eastern Airlines Corporation Limited (SSE: 600115 SEHK: 0670 NYSE: CEA) is the China Eastern Airlines Group, a state-owned enterprise that was supervised by State-owned Assets Supervision and Administration Commission of the State Council.

History and development

The old logo of China Eastern Airlines.

China Eastern Airlines was established on 25 June 1988 under the CAAC Huadong Administration. In 1997, China Eastern took over unprofitable China General Aviation and also became the country's first airline to offer shares on the international market. In 1998 it founded China Cargo Airlines in a joint venture with COSCO. In March 2001, it completed the takeover of Great Wall Airlines.[4] China Yunnan Airlines and China Northwest Airlines merged into China Eastern Airlines in 2003.

Liu Shaoyong in 2014

The Chinese government has a majority ownership stake in China Eastern Airlines (61.64%), while some shares are publicly held (H shares, 32.19%); A shares, 6.17%. On 20 April 2006 the media broke the news of a possible sale of up to 20% of its stake to foreign investors, including Singapore Airlines, Emirates and Japan Airlines, with Singapore Airlines confirming that negotiations were underway.[6][7]

After receiving approval from the State Council of China, it was announced that on 2 September 2007 Singapore Airlines and Temasek Holdings (holding company which owns 55% of Singapore Airlines) would jointly acquire shares of China Eastern Airlines.[8][9] On 9 November 2007 investors signed a final agreement to buy a combined 24% stake in China Eastern Airlines: Singapore Airlines would own 15.73% and Temasek Holdings an 8.27% stake in the airline.[10] Singapore Airlines' pending entry into the Chinese market prompted the Hong Kong carrier Cathay Pacific to attempt to block the deal by buying a significant stake in China Eastern and voting down the deal together with Air China (which already held an 11% stake in China Eastern) at the shareholders' meeting in December 2007.[11][12] However, on 24 September Cathay Pacific announced that it had abandoned these plans.[13]

Air China's parent company, state-owned China National Aviation Corporation, announced in January 2008 that it would offer 32% more than Singapore Airlines for the 24% stake in China Eastern, potentially complicating the deal that Singapore Airlines and Temasek had proposed.[14] However, minority shareholders declined the offer made by Singapore Airlines. It is thought that this was due to the massive effort made by Air China to buy the 24% stake.[15]

On 11 June 2009 it was announced that China Eastern Airlines would merge with Shanghai Airlines.[16] The merger of China Eastern and Shanghai Airlines was expected to reduce excess competition between the two Shanghai-based carriers while consolidating Shanghai's status as an international aviation hub. In February 2010 the merger was completed. Shanghai Airlines became a wholly owned subsidiary of China Eastern Airlines. However, Shanghai Airlines retained its brand and livery. The new combined airline was expected to have over half of the market share in Shanghai, the financial hub of China.

In March 2012 it was announced that China Eastern was forging a strategic alliance with the Qantas Group to set up Jetstar Hong Kong, a new low cost airline to be based at Hong Kong International Airport, which would commence operations in 2013.[17] China Eastern would hold a 50% stake in the new airline, with the Qantas Group holding the other 50%, representing a total investment of US$198 million.[18] However, in June 2015, the Hong Kong authority refused to issue operating license to Jetstar Hong Kong. China Eastern and Qantas subsequently announced the end of the investment.

In April 2013, China Eastern got a temporary permit to operate in the Philippines, but the Civil Aviation Authority of the Philippines required them to obtain a technical permit and an airport slot.[19][20]

In 2012, China Eastern was awarded the “Golden Ting Award” at the China Capital Market Annual Conference 2012, recognizing it as one of the 50 most valuable Chinese brands by WPP and ranking in the top ten of FORTUNE China's CSR Ranking 2013.

The airline announced a 25% fall in earnings for 2014 from their net profit of 2.38bn Chinese Yuan in 2013. It commented that tougher competition from low-cost airlines and a newly launched high-speed rail network is affecting profitability.[21]

On September 9, 2014, China Eastern was introduced the new logo and new livery.[22] In 2014, China Eastern Airlines carried 83.08 million domestic and international passengers with an average load factor of 73%.[23]

In 2015 the airline entered a partnership with Delta Air Lines in which Delta will buy a 3.55% share in China Eastern for $450 million.[24]

Destinations

China Eastern Airlines has a strong presence on routes in Asia, North America and Australia. The airline looks to exploit the domestic market potential as it boosts flight frequencies from Shanghai to other Chinese cities. The airline is also accelerating the pace of international expansion by increasing flight frequencies to international destinations. In 2007 it began operations to New York City from Shanghai, making it the longest non-stop route for the airline.

Codeshare agreements

China Eastern Airlines codeshares with the following airlines:[25]

Fleet

China Eastern Airlines A330-200 at Frankfurt Airport
China Eastern Airlines A320-200
A China Eastern Airlines Airbus A330-300 shortly after departing Sheremetyevo Airport in 2011.
China Eastern Airlines Boeing 737-700
China Eastern Airlines Airbus A330-200 in new livery

As of August 2017, the China Eastern Airlines fleet consists of the following aircraft:[26][27]

China Eastern Airlines Passenger Fleet
Aircraft In Service Orders Passengers Notes
P J Y Total
Airbus A319-100 36 8 114 122
Airbus A320-200 171 52 8 150 158 Deliveries until 2017
Airbus A320neo 70 TBA Ordered 2014 for delivery between 2018 and 2020[28]
Airbus A321-200 73 20 155 175 [29]
12 166 178
12 170 182
Airbus A330-200 5 24 240 264 Three older aircraft will be phased out[30]
13 30 204 234
12 30 202 232
Airbus A330-300 15 24 268 292 Seven older aircraft will be phased out[30]
4 11[30] 32 262 294[31]
Airbus A350-900 20 TBA Order placed 2016 for delivery between 2018 and 2022[32]
Boeing 737-700 39 8 126 134
8 120 128
140 140
Boeing 737-800 81 35 8 156 164
8 162 170
12 150 162
20 138 158
Boeing 737 MAX 60 TBA Ordered 2014 for delivery between 2017 and 2020[33]
Boeing 777-300ER 20 6 52 258 316 First aircraft delivered on 26 September 2014[34]
Boeing 787-9 15 TBA Ordered 2016 for delivery between 2018 and 2021[32]
Comac C919 20 TBA
Total 469 283

China Eastern Airlines was the first Chinese carrier to place an order with Airbus. The backbone of the fleet is the A320 series, which are used primarily on domestic flights.

In 2005, China Eastern Airlines placed an order for 15 Boeing 787 Dreamliners. The airline subsequently cancelled its order owing to continuous delays, instead ordering Boeing 737 Next Generation aircraft,[35] but placed another order in 2016, for 787-9s.[32] On 18 October 2011, China Eastern Airlines placed an order for 15 Airbus A330s.[36][37]

On 27 April 2012, China Eastern Airlines ordered 20 Boeing 777-300ERs pending government approval. The airline received its first 777-300ER aircraft on 26 September 2014.

In 2015 the airline announced plans to acquire a further 15 Airbus A330 aircraft for delivery in 2017 and 2018.[38]

Fleet History

China Eastern Airlines has previously operated the following aircraft:

China Eastern Airlines Passenger Fleet
Aircraft Fleet Introduced Retired Notes
Airbus A300-600R 10 1993 2015 Disposed to Uni-Top Airlines
Airbus A300-600RF 10 1993 2015 Disposed to MNG Airlines
Airbus A310-200 3 1988 2006
Airbus A310-300 2 1988 1994
Airbus A340-300 5 1996 2012 Four aircraft are currently stored
Airbus A340-600 5 2003 2015
Boeing 737-200 3 2001 2005
Boeing 737-300 26 1998 2005 Four aircraft are currently stored
Boeing 767-300ER 3 2003 2011 Bought from British Airways as second-hand aircraft
Most are disposed to MIAT Mongolian Airlines and Orient Thai Airlines
Bombardier CRJ-200ER 5 2004 2016 Four aircraft are currently stored
British Aerospace BAe-146-100 6 1986 2009 Two aircraft are currently stored
British Aerospace BAe-146-300 7 2003 2009 Four aircraft are currently stored
Embraer ERJ-145 10 2005 2016 One aircraft is currently stored
Most are disposed to Airbus
Fokker 100 10 1992 1999 Disposed to TAM Airlines
McDonnell Douglas MD-11 6 1991 2003 After retired, all fleets were converted into freighter
McDonnell Douglas MD-11F 6 1991 2003 Transferred to China Cargo Airlines
McDonnell Douglas MD-82 16 1988 2007
McDonnell Douglas MD-90 9 1997 2010 Disposed to Delta Air Lines

Eastern Miles

Eastern Miles logo

China Eastern Airlines's frequent-flyer program is called Eastern Miles (simplified Chinese: 东方万里行; traditional Chinese: 東方萬里行). Shanghai Airlines and China United Airlines, China Eastern's subsidiary, are also parts of the program. Enrollment is free of charge. Eastern Miles members can earn miles on flights as well as through consumption with China Eastern's credit card. When enough miles are collected, members can be upgraded to Elite. Elite membership of Eastern Miles can be divided into three tiers: Platinum Card membership, Gold Card membership and Silver Card membership. Elite membership can enjoy extra privileged services.[39]

Eastern Miles Elite Membership Tiers
Tier Level BenefitsRequirements
Platinum (Elite Plus)
  • 50% mileage bonus
  • Priority class upgrade: unlimited for domestic flights when conditions permit and 4 times for international flights
  • Priority seat reservation 24 hours before flight takeoff
  • Priority for waitlisting and class upgrade
  • First Class Lounge Access with a companion
  • Extra Luggage Allowance: 40 kilograms (88 lb) for domestic flights and 20 kilograms (44 lb) for international flights
  • Priority baggage handling with First Class tag
  • Usage of check-in formalities at First Class Counter with a companion

160,000 Points or 90 qualifying flights within 12 months

Gold (Elite Plus)
  • 30% mileage bonus
  • Priority seat reservation 48 hours before flight takeoff
  • Priority for waitlisting and class upgrade
  • First Class Lounge Access with a companion
  • Extra Luggage Allowance: 40 kilograms (88 lb) for domestic flights and 20 kilograms (44 lb) for international flights
  • Priority baggage handling with First Class tag
  • Usage of check-in formalities at First Class Counter with a companion

80,000 Points or 40 qualifying flights within 12 months

Silver (Elite)
  • 15% mileage bonus
  • Priority seat reservation 72 hours before flight takeoff
  • Priority for waitlisting and class upgrade
  • Business Class Lounge Access
  • Extra Luggage Allowance: 20 kilograms (44 lb) for domestic flights and 10 kilograms (22 lb) for international flights
  • Priority baggage handling with Business Class tag
  • Usage of check-in formalities at Business Class Counter

40,000 Points or 25 qualifying flights within 12 months

Cargo

China Cargo Airlines Boeing 747-400ERF

After the merger with Shanghai Airlines, China Eastern Airlines signaled that it would combine the two carriers' cargo subsidiaries as well. The airline's new subsidiary cargo carrier, consisting of the assets of China Cargo Airlines, Great Wall Airlines and Shanghai Airlines Cargo, commenced operations in 2011 from its base in Shanghai, China's largest air cargo market.[40] China Eastern Airlines signed a strategic cccooperation frameworkagreement with Shanghai Airport Group, which controls both Shanghai Hongqiao International Airport and Shanghai Pudong International Airport. The airline will allocate more capacity to Pudong Airport to open more international routes and boost flight frequencies on existing international and domestic trunk routes.

China Cargo Airlines

China Eastern Airlines's cargo subsidiary, China Cargo Airlines, is China's first all-cargo airline operating dedicated freight services using China Eastern Airlines' route structure. The cargo airline carries the same logo of China Eastern Airlines.

Incidents and accidents

See also

References

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  2. "Exhibit B." p. 2. "2550 Hongqiao Road Hongqiao International Airport China Eastern Airlines Building" (Archive)
  3. "China Eastern Airlines Corp. Ltd. (CEA)." Yahoo! Finance. Retrieved 2009-10-03.
  4. 1 2 "Directory: World Airlines". Flight International. 3 April 2007. p. 64.
  5. Cantle, Katie (23 June 2011). "China Eastern becomes 14th SkyTeam member". ATWOnline. Retrieved 2011-10-17.
  6. Shanghai Daily
  7. Channel News Asia
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  22. 东方航空正式发布全新VI体系 Archived September 12, 2014, at the Wayback Machine., China Eastern Airlines
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  29. 机型展示
  30. 1 2 3 "东方航空2016年年度报告全文" (PDF). 中国东方航空股份有限公司. 中国东方航空股份有限公司. Retrieved 2 May 2017.
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  45. "Flight captains punished after failed landing". Shenzhen Daily (10 May 2016). Shenzhen Daily. Shanghai Daily. 10 May 2016. Retrieved 11 May 2016.
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