China Eastern Airlines

China Eastern Airlines
中国东方航空公司
Zhōngguó Dōngfāng Hángkōng Gōngsī

IATA MU ICAO CES Callsign CHINA EASTERN
Founded	1988
Hubs	Kunming Wujiaba International Airport Shanghai Hongqiao International Airport Shanghai Pudong International Airport Xi'an Xianyang International Airport
Focus cities	Beijing Capital International Airport Hefei Luogang International Airport Nanjing Lukou International Airport Ningbo Lishe International Airport Shijiazhuang Daguocun International Airport Taiyuan Wusu Airport Wuhan Tianhe International Airport Wuxi Shuofang Airport
Frequent-flyer program	Eastern Miles
Alliance	SkyTeam
Subsidiaries	China Cargo Airlines China United Airlines Jetstar Hong Kong Joy Air Shanghai Airlines
Fleet size	298 (+139 orders)
Destinations	110
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)
Website	www.flychinaeastern.com

China Eastern Airlines Corporation Limited (Chinese: 中国东方航空公司, inside China colloquially known as 东航) (SSE: 600115 SEHK: 0670 NYSE: CEA) is an airline headquartered on the grounds of Shanghai Hongqiao International Airport in Changning District, Shanghai, China.^[1] 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.^[2] China Eastern also has hubs at Kunming Wujiaba International Airport and Xi'an Xianyang International Airport. China Eastern Airlines is China's second-largest carrier by passenger numbers and the world’s third-biggest carriers by market value. On 16 April 2010, China Eastern Airlines announced an initial agreement to join SkyTeam.^[3][4] On 21 June 2011, China Eastern, along with is subsidiary Shanghai Airlines, officially joined the SkyTeam airline alliance, becoming the 14th member and the second Chinese carrier to join (the other being China Southern Airlines).^[5]

In 2010, China Eastern Airlines carried 64.93 million domestic and international passengers with an average load factor of 78%. The airline reported a net profit of CNY5.3 billion ($807 million) in 2010.^[6][7]

History and development

China Eastern Airlines A320-200

China Eastern Airlines A330-200

China Eastern Airlines B737-700

The airline was established on 25 June 1988, under the CAAC Huadong Administration. In 1997, China Eastern took over the unprofitable China General Aviation and also became the country's first airline to offer shares on the international market. It founded China Cargo Airlines in a joint venture with COSCO in 1998. In March 2001, it completed the takeover of Great Wall Airlines.^[2] 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 April 20, 2006, the media broke the news of a possible sale of up to 20% of its stake to foreign investors, including Singapore Airlines, Emirates Airline and Japan Airlines, with Singapore Airlines confirming that negotiations were underway.^[8][9]

After receiving approval from the State Council of China, it was announced that on September 2, 2007, Singapore Airlines and Temasek Holdings (holding company which owns 55% of Singapore Airlines) would jointly acquire shares of China Eastern Airlines.^[10][11] On November 9, 2007, investors signed a final agreement to buy a combined 24% stake in China Eastern Airlines: Singapore Airlines will own 15.73% and Temasek Holdings - 8.27% stake in the airline.^[12] 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 holds an 11% stake in China Eastern) at the shareholders' meeting in December 2007.^[13][14] However on September 24 Cathay Pacific announced that it had abandoned such plans.^[15]

Air China's parent company, the China National Aviation Corporation, a state-owned company, 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.^[16] However, minority shareholders declined the offer made by Singapore Airlines. It is thought that this is due to the massive effort made by Air China to buy the 24% stake.^[17]

On 11 June 2009, it was announced that China Eastern Airlines would merge with Shanghai Airlines.^[18] The merger of China Eastern and Shanghai Airlines was expected to reduce excess-competition between the two Shanghai-based carriers and to consolidate 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 will retain its brand and livery. The new combined airline is 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 will commence operations in 2013.^[19] China Eastern will hold a 50% stake in the new airline, with the Qantas Group holding the other 50%, with a total investment of US$198 million expected.^[20]

Destinations

China Eastern Airlines has a strong presence on routes in Asia, North America and Australia. They also have flights to London and Stockholm. 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 November 22, China Eastern Airlines started a 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. In addition, the carrier is planning to launch services to Rome and hopes to open more routes to Europe, US and Australia^{[citation needed]}. The airline is seeking regulatory approval to begin flights to Hawaii.^[21]

Codeshare agreements

As of April 2012, China Eastern Airlines has codeshare agreements with the following airlines, beside SkyTeam members:

Passenger fleet

A China Eastern Airlines Boeing 737 (B-5530) in Chengdu Shuangliu International Airport

China Eastern Airlines is an important customer of Airbus. It was the first Chinese carrier to have ordered from the manufacturer. The backbone of the fleet is the A320 series, which are primarily used for domestic flights. In 2005, China Eastern Airlines placed an order for 15 Boeing 787 Dreamliners. However, the airline have cancelled its order owing to the program's continuous delays and switch to Boeing 737 Next Generation.^[22] On 18 October 2011, China Eastern Airlines placed an order for 15 Airbus A330.^[23][24]

On April 27th, 2012, China Eastern Airlines ordered 20 Boeing 777-300ERs from Boeing, pending government approval. Meanwhile it will phase out all five of its Airbus A340-600s.^[25]

China Eastern Airlines's fleet includes the following aircraft (as of April 23, 2012):

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.^[28]

Cargo

China Cargo Airlines Boeing 777F

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, will commence operations in 2011 from its base in Shanghai, China's largest air cargo market.^[29] 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 August 15, 1989, a China Eastern flight from Shanghai to Nanchang, a Antonov 24 crashed on take off due to its No.2 engine failure, killing 34 of 40 on board.^[30]
• On April 6, 1993, China Eastern Airlines Flight 583, a McDonnell-Douglas MD-11 flying from Shanghai to Los Angeles, 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.
• On October 26, 1993, Flight 5398 from Shenzhen to Fuzhou, a McDonnell-Douglas MD-82 (Reg. B-2103) crashed near Fuzhou airport, after a failed attempt to go around on approach, killing 2 of 80 on board.
• On September 11, 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.^[31] A clip from the landing is available online.
• On November 21, 2004, Flight 5210 from Baotou to Shanghai, a Bombardier CRJ-200 (Reg. B-3072) 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 Kunming, Xishuangbanna and Dali.^[32]

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 (video game)

See also

	Aviation portal
	Companies portal
	People's Republic of China portal

• Civil aviation in the People's Republic of 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

External links

Wikimedia Commons has media related to: China Eastern Airlines

• Official website (Chinese)
• Official website (Worldwide)

v t e Airlines of the People's Republic of China Authorities: Civil Aviation Administration of China Civil Aviation Department (Hong Kong) Civil Aviation Authority (Macau) Passenger Air China Air Macau2 Beijing Capital Airlines Chengdu Airlines China Express Airlines Cathay Pacific1 China Eastern Airlines China Flying Dragon Aviation China Southern Airlines China United Airlines Chongqing Airlines Dalian Airlines Dragonair1 East Star Airlines Grand China Air Grand China Express Air Hainan Airlines Hebei Airlines Henan Airlines Hong Kong Airlines1 Hong Kong Express Airways1 Jetstar Hong Kong1 Joy Air Juneyao Airlines Kunming Airlines Lucky Air Okay Airways Shandong Airlines Shanghai Airlines Shenzhen Airlines Sichuan Airlines Spring Airlines Tianjin Airlines Tibet Airlines West Air Xiamen Airlines Cargo Air China Cargo Air Hong Kong1 China Cargo Airlines China Postal Airlines Grandstar Cargo Great Wall Airlines Shanghai Airlines Cargo Shenzhen Donghai Airlines Yangtze River Express Airlines with footnotes are headquarted in Hong Kong1 or Macau2 Special Administrative Regions See also Defunct airlines of the People's Republic of China