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
Hubs	Shanghai Hongqiao International Airport Shanghai Pudong International Airport
Secondary hubs	Beijing Capital International Airport Kunming Changshui International Airport Xi'an Xianyang International Airport
Focus cities	Changzhou Benniu Airport Chengdu Shuangliu International Airport Guangzhou Baiyun International Airport Hangzhou Xiaoshan International Airport Hefei Xinqiao International Airport Lanzhou Zhongchuan International Airport Nanchang Changbei International Airport Nanjing Lukou International Airport Ningbo Lishe International Airport Qingdao Liuting International Airport Shijiazhuang Zhengding International Airport Taiyuan Wusu International Airport Wuhan Tianhe International Airport
Frequent-flyer program	Eastern Miles
Alliance	SkyTeam
Subsidiaries	China Cargo Airlines China United Airlines Shanghai Airlines
Fleet size	418
Destinations	217
Company slogan	Traveling the globe, making dreams come true
Headquarters	Shanghai Hongqiao International Airport Shanghai, China
Key people	Liu Shaoyong (Chairman) Dong Haoqiang (COO) Lou Feijiang (Assistant COO) Ma Pingqiong (CFO) Luo Kelin (Assistant CFO) Hawei Dawei (Logistics Officer)
Revenue	CN¥85.25 billion (2012)[1]
Operating income	CN¥4.228 billion (2012)[1]
Net income	CN¥2.808 billion (2012)[1]
Total assets	CN¥123.82 billion (2012)[1]
Total equity	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
Transcriptions Standard Mandarin Hanyu Pinyin Zhōngguó Dōngfāng Hángkōng Gōngsī Wu Romanization Tson^平 koh^入 Ton^平 Fon^平 On^上 koen^平 Gon^平 seh^平

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, SSE: 600115 SEHK: 0670 NYSE: CEA) 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]

In 2014, China Eastern Airlines carried 83.08 million domestic and international passengers with an average load factor of 73%.^[6]

History and development

The old logo of China Eastern Airlines.

China Eastern Airlines A330-200 at Frankfurt Airport

China Eastern Airlines A320-200

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.

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.^[7][8]

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.^[9][10] 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.^[11] 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.^[12][13] However, on 24 September Cathay Pacific announced that it had abandoned these plans.^[14]

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.^[15] 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.^[16]

On 11 June 2009 it was announced that China Eastern Airlines would merge with Shanghai Airlines.^[17] 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.^[18] 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.^[19]

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.^[20][21]

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.

On September 9, 2014, China Eastern was introduced the new logo and new livery.^[22]

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.^[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 $450m.^[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 from Shanghai, making it the longest non-stop route for the airline. On 22 November China Eastern Airlines started twice-weekly seasonal flights on the Shanghai–Brisbane route but these flights didn't continue during 2010/11. Instead, the carrier operated charters to Cairns. On 9 August 2011, China Eastern started services to Honolulu from Shanghai, which marked the first ever direct service between mainland China and Hawaii.^[25]

Countries with destinations of China Eastern Airlines (including seasonal and future destinations).

  China

  China Eastern Airlines Destinations

Codeshare agreements

As of January 2016, beside SkyTeam members, China Eastern Airlines has codeshare agreements with the following airlines:

Japan Airlines (Oneworld) [26] Qantas (Oneworld) [27] Virgin America [28] WestJet [29]

Fleet

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

China Eastern Airlines Airbus A321-231 in SkyTeam livery

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.^[30] On 18 October 2011, China Eastern Airlines placed an order for 15 Airbus A330.^[31][32]

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

On July 9. China Eastern announced that an additional 50 Boeing 737-800 are ordered. In 2015 the airline announced plans to acquire a further 15 Airbus A330 aircraft for delivery in 2017 and 2018.^[33]

As of April 2016, China Eastern Airlines's fleet includes the following aircraft:^{[34][35][36][37]}

China Eastern Airlines Passenger Fleet

Aircraft	In Service	Orders	Passengers				Notes
			P	J	Y	Total
Airbus A319-100	37	—	—	8	114	122
Airbus A320-200	159	67	—	8	150	158	Deliveries until 2017
Airbus A320neo	—	70	TBA
Airbus A321-200	51	—	—	20	157	177
Airbus A330-200	5	—	—	24	240	264	'332'; with angled lie-flat business class in 2-2-2 arrangement
	13	—	—	30	204	234	'33E'; with lie-flat business class in 2-2-2 arrangement
	12	—	—	30	202	232	'33H'; with lie-flat business class in 1-2-1 arrangement
Airbus A330-300	15	—	—	24	268	292	'333'; business class in 2-2-2 arrangement
Airbus A350-900	0	20	TBA				Order placed 28/4/2016 with delivery between 2018 and 2022[38][39]
Boeing 737-300	5	—	—	—	148	148
Boeing 737-700	45	—	—	8	126	134
			—	—	140	140
Boeing 737-800	67	53	—	8	162	170	50 additional B737-800 were ordered on July 9
			—	12	150	162
Boeing 777-300ER	9	11	6	52	258	316	First aircraft delivered on 26 September 2014 [40]
Boeing 787-9	0	15	TBA				Order placed 28/4/2016 with delivery between 2018 and 2021[41][42]
Comac C919	—	20	TBA
Total	418	221

Livery Gallery

• 

  Airbus A330-343 in 2011 Xi'an International Horticultural Expo Livery

• 

  Airbus A320-232 in 2011 Xi'an International Horticultural Expo Livery

• 

  Airbus A330-343 in EXPO Shanghai 2010 Livery

• 

  Boeing 737-800 in special livery for promotion of tourism in Enshi Tujia and Miao Autonomous Prefecture

• 

  China Eastern Yunnan Airlines Boeing 737-800 in Purple Peacock Livery

• 

  Airbus A330-343 in People's Daily Online Livery

• 

  Airbus A330-343 in Xinhua News Livery

• 

  Airbus A330-343 in Shanghai Disney Resort Livery

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, China Eastern's subsidiary, is also part 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 VIP. VIP membership of Eastern Miles can be divided into two tiers: Golden Card membership and Silver Card membership. VIP membership can enjoy extra privileged services.^[43]

Eastern Miles VIP Membership Tiers

Tier Level	Benefits	Requirements
Gold	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 Elite Points
Silver	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 Elite Points

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.^[44] China Eastern Airlines signed a strategic co-operation framework agreement 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

• On 15 August 1989, an Antonov An-24 operating a flight from Shanghai to Nanchang crashed on takeoff due to an engine failure, killing 34 of 40 people on board.^[45]
• On 6 April 1993, China Eastern Airlines Flight 583, a McDonnell-Douglas MD-11 flying from Beijing to Los Angeles via Shanghai, had an inadvertent deployment of the leading edge wing slats while cruising. The aircraft progressed through several violent pitch oscillations and lost 5,000 feet (1,500 m) of altitude. Two passengers were killed, and 149 passengers and 7 crew members were injured. The aircraft landed safely at Shemya.
• On 26 October 1993, China Eastern Flight 5398 from Shenzhen to Fuzhou, a McDonnell Douglas MD-82 crashed near Fuzhou airport after a failed attempt to go around on approach, killing two of 80 on board.
• On 11 September 1998, China Eastern Flight 586, a McDonnell-Douglas MD-11, flying from Shanghai Hongqiao International Airport to Beijing Capital International Airport, suffered a nose gear failure after take-off. The aircraft landed back in Shanghai with the nose gear up on a foamed runway.^[46]
• On 21 November 2004, China Eastern Airlines Flight 5210 from Baotou to Shanghai, a Bombardier CRJ200 small passenger jet, crashed in Inner Mongolia one minute after departure, killing all 53 occupants.
• In March 2008, pilots of 21 CEA flights returned their aircraft to the airport of departure, citing various reasons for doing so, as part of a union contract dispute. In retaliation, the government removed the carrier's rights to a range of services in the southern China province of Yunnan. In late October 2008 Chinese media reports indicated that the carrier would shortly be able to resume flights to Dali, Kunming and Xishuangbanna Prefecture .^[47]
• On 7 June 2013, China Eastern Flight 2947, an Embraer EMB-145 flying from Huai'an Lianshui Airport to Shanghai Hongqiao International Airport veered off of runway 18L at Hongqiao Airport during landing. The plane came to a stop on an adjacent taxiway with its nose gear collapsed. No passengers or crew suffered any injuries; however, the plane received substantial damage.^[48]

In popular culture

• A movie named "Crash Landing" was made by Shanghai Film Studio, based on the incident of China Eastern Flight 586. The airline name was eliminated, but the livery of the aircraft is recognizable.
• China Eastern Airlines appears frequently on the Japanese air traffic control video game Air Traffic Controller.

See also

• Civil aviation in China
• List of airlines of the People's Republic of China
• List of airports in China
• List of companies of the People's Republic of China
• Transport in China

References

1. "Form 20-F China Eastern Airlines Corporation Limited". sec.gov. 2012. Retrieved 2013-09-13.
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. "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. "China Eastern Airlines Co Ltd. – 2012 Annual Results Announcements" (PDF). irasia.com. 26 March 2013. Retrieved 2013-09-13.
7. Shanghai Daily
8. Channel News Asia
9. SIA approved to buy into China Eastern Flight Global, 31 August 2007
10. "SIA, China Eastern Airlines announce strategic tie-up". Channel NewsAsia. 2 September 2007. Retrieved 2007-09-02.
11. "Singapore Airlines, Temasek sign China Eastern deal". Channel NewsAsia. 9 November 2007. Retrieved 2007-11-09.
12. "Cathay Pacific to try and block Singapore Airlines: report". Agence France-Presse (Channel NewsAsia). 22 September 2007. Retrieved 2007-09-22.
13. "BBC 中文网 - 服务专区 - 纯文字页". BBC News. Retrieved 2012-04-28.
14. Markets (24 September 2007). "Cathay Pacific abandons China Eastern plan". London: Telegraph.co.uk. Retrieved 2012-04-28.
15. Dyer, Geoff (6 January 2008). "/ Companies / Transport - Air China pursues China Eastern stake". Ft.com. Retrieved 2012-04-28.
16. Anderlini, Jamil (8 January 2008). "Shareholders reject Singapore Air offer". FT.com. Retrieved 2008-01-08.
17. "China Eastern Airlines announces detailed merger plan with Shanghai Airlines". News.xinhuanet.com. 12 July 2009. Retrieved 2012-04-28.
18. "China Eastern Airlines and Qantas announce Jetstar Hong Kong". Jetstar Airways. 26 March 2012. Retrieved 2012-03-26.
19. "Qantas creates Jetstar Hong Kong". Sky News Australia. 26 March 2012. Retrieved 2012-03-26.
20. "China Eastern Airlines bags temporary permit - Civil Aeronautics Board :: Philippines". Cab.gov.ph. Retrieved 2013-07-05.
21. "China Eastern Airlines bags temporary permit | BusinessWorld Online". Bworldonline.com. 2013-04-17. Retrieved 2014-01-17.
22. 东方航空正式发布全新VI体系, China Eastern Airlines
23. "China Eastern Airlines full year profit falls 25% on weak demand". BBC News. 27 March 2014.
24. "East-West Partnership". Airliner World: 15. October 2015.
25. http://www.echinacities.com/news/China-Eastern-Airlines-to-Launch-Direct-Flight-to-Hawaii-from-August-9th
26. "JAL and China Eastern Airlines Expand Codeshare" (Press release). Japan Airlines. 26 September 2011. Retrieved 2013-09-13.
27. Fickling, David (2013-04-03). "Qantas Boosts China Eastern Code Share Doubling Mainland Flights". bloomberg.com. Retrieved 2013-09-13.
28. "Virgin America Launches Codeshare Agreement With China Eastern". bloomberg.com. 2014-12-16. Retrieved 2015-01-29.
29. "WestJet – Our code-share partners". westjet.com. Retrieved 2013-09-13.
30. {{cite web|url=http://www.flightglobal.com/news/articles/china-eastern-abandons-787-order-for-737s-363530/ |title=China Eastern abandons 787 order for 737s |publisher=Flightglobal.com |date= |accessdate=2011-10-18} }
31. "China Eastern orders 15 A330s, drops five A340s". Flightglobal.com. 5 May 2011. Retrieved 2011-10-18.
32. "China Eastern orders 15 Airbus 330s". Channel NewsAsia. Retrieved 2011-10-18.
33. "China Eastern Airlines". Airliner World: 17. October 2015.
34. "China Eastern Airlines Fleet". ch-aviation.ch. Retrieved 2013-10-03.
35. Flight International (13–19 August 2013): 43–58. August 2013. Missing or empty |title= (help)
36. "Fleet Information - China Eastern Airlines". ceair.com. Retrieved 2013-09-27.
37. 28 June 2015. "China Eastern Airlines Fleet in Planespotters.net". planespotters.net. Retrieved 2015-06-28.
38. http://www.bloomberg.com/news/articles/2016-04-28/boeing-airbus-win-wide-body-jetliner-orders-from-china-eastern
39. http://www.ch-aviation.com/portal/news/45902-china-eastern-orders-twenty-a350s-fifteen-b787s
40. Shih, Kai-Chin. "China Eastern 777-300ER Interior". Talkairlines. Talkairlines. Retrieved 24 July 2014.
41. http://www.bloomberg.com/news/articles/2016-04-28/boeing-airbus-win-wide-body-jetliner-orders-from-china-eastern
42. http://www.ch-aviation.com/portal/news/45902-china-eastern-orders-twenty-a350s-fifteen-b787s
43. "Welcome to Eastern Miles". Easternmiles.com. Retrieved 2012-04-28.
44. Cantle, Katie (30 September 2010). "New China Eastern cargo carrier to launch Jan. 1 from Shanghai". Atwonline.com. Retrieved 2012-04-28.
45. "ASN Aircraft accident Antonov 24RV B-3417 Shanghai-Hongqiao Airport". Aviation-safety.net. 15 August 1989. Retrieved 2012-04-28.
46. "ASN Aircraft accident McDonnell Douglas MD-11 B-2173 Shanghai-Hongqiao Airport (SHA)". Aviation-safety.net. 11 September 1998. Retrieved 2012-04-28.
47. Aviation Week & Space Technology Vol. 169 No. 16, 27 October 2008, "Rerouted", p. 18
48. Accident: China Eastern E145 at Shanghai on Jun 7th 2013, runway excursion, nose gear collapse. The Aviation Herald. 7 June 2013.

External links

• Official Website (Global)
• Official Website (Chinese Version)
• Official Website (US Version)
• China Eastern Yunnan Airlines (simplified Chinese)
• Investor Relations Asia Pacific
• China Eastern Airfreight Business Management System