China Eastern's new-generation partnerships provide a unique platform for its long-haul network

Long-haul is increasingly a risky proposition, especially for new and small entrants, so well-established China Eastern is fortunate to be in the position of having a relatively light long-haul network but future aircraft deliveries to allow it to expand into this zone. Perhaps more important is that Qantas and Etihad are effectively ready for a deep partnership when China Eastern has the resources to work through the deal. It remains interested in both and is still negotiating with Qantas. No doubt there are other interested carriers, too.

China Eastern's long-haul network is still small, constituting only 17% of its international seat capacity (mostly within Northeast Asia) and 3% of overall capacity at what is one of the world's 10 largest airlines. But the network could use some help given its loss-making status - unquantified, although in 2012 North American losses decreased by about RMB100 million (USD16 million) while European losses increased by RMB100 million (USD16 million). But China Eastern has a long list of priorities, including watching its key presence in Japan, a market that has suffered a downturn after recent political spats, as well as expanding a subsidiary's tidy operation at Beijing's other airport at Nanyuan, and a deeper partnership with high-speed rail.