China Eastern Airlines
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- 2550 Hongqiao Road, Hongqiao International Airport
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- Shanghai Pudong International Airport
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Air Europa Lineas Aereas
China Express Airlines
China Southern Airlines
China United Airlines
CSA Czech Airlines
Delta Air Lines
Hong Kong Airlines
KLM Royal Dutch Airlines
Royal Brunei Airlines
Shanghai-based China Eastern Airlines is one of China's 'big three' state-owned airlines, with hubs at Shanghai's Pudong and Hongqiao airports, as well as Kunming Airport in southwest China. The airline operates a fleet of Airbus, Boeing, Embraer and Bombardier aircraft to support an extensive network, serving over 350 domestic routes and 40 international destinations, including cities in Australia, Europe, Korea, Japan, North America and Southeast Asia. China Eastern merged with Shanghai Airlines in 2010 and joined China Southern in the SkyTeam Alliance in Jun-2011.
Location of China Eastern Airlines main hub (Shanghai Pudong International Airport)
China Eastern Airlines share price
363 total articles
China and France have agreed to a significant expansion of flights between their countries. Chinese airlines, which have no more than 50 weekly flights to France, will be permitted to grow to 126 weekly flights within a few years. This tranche of rights will likely double the number of Chinese airlines in France (currently four) and take Chinese airlines to serving French cities other than Paris.
Air France will likely grow partnerships with SkyTeam's China members, although Air France will need to make concessions on its existing China JVs. It is unclear whether Air France will revisit considerations of investing in China Southern.
Chinese airlines will become France's second largest source of foreign long haul flights, and in the long term China could surpass the US. For China, France could become its third largest long haul market after the US and Australia. France is China's third major aeropolitical expansion in recent months, after the UK and Australia. This could give China leverage to press the US and Canada to expand traffic rights, although these markets are far more convoluted.
It is surely no coincidence that Delta Air Lines and Korean Air announce their joint venture a mere two days after their SkyTeam partner China Southern Airlines – the largest in Asia, second largest in SkyTeam and sixth largest in the world – agrees to an investment and broad strategic partnership from Delta's rival, American Airlines, a member of oneworld.
Delta and Korean Air have long flagged their JV and the 29-Mar-2017 announcement is only a Memorandum of Understanding. The JV will have to be strong, with a high level of integration and trust, since it will involve profit sharing and not just revenue sharing.
Yet aside from that Delta and Korean have offered no new details, or even a time frame. Their announcement merely formalises what they have essentially been saying for months.
If it is to be leverage against China Southern-American, it should be noted that the two partnerships will be very different in the medium term and will not create significant competition with each other. The Delta-Korean JV comes with unfortunate timing for Korean Air, which continues to face slackening investor confidence and severe pressure in the Korea-China market.
China-US air growth slows as Xiamen Airlines flies Fuzhou-New York, making the world a smaller place
The world becomes a smaller place on 15-Feb-2017 with the launch of Xiamen Airlines' Fuzhou-New York JFK service. The route is a not a headline grabber like the ultra long hauls of Singapore-San Francisco or Doha-Auckland. But linking the two cities brings a nonstop flight to what is, by some calculations, the largest unserved trans-Pacific market.
The new flight reflects on current themes in the market between Asia and North America: the growth from China's secondary cities, more Chinese airlines being catapulted onto the world stage, and impacts to one stop competitors.
Fuzhou-New York will initially be only flown three times a week, supporting competitors' retorts that they have a frequency advantage – or at least for now. Competitors have also claimed a better product, but Xiamen's 787-9 is China's fifth widebody to offer direct aisle access business class. Soft service is catching up, and likewise for commercial planning: Xiamen's 787-9s do away with first class. This report looks at the growth of China and the rest of Asia to North America as growth momentum slows with China's bilateral capacity being reached.
The most important regulatory development in Chinese aviation in 2016 – and possibly one of the top for the decade – was awarding China Eastern Airlines home carrier status for Beijing's second airport, Beijing Daxing, due to open in 2019. There are usually few surprises in Chinese aviation: if word does not leak out, it is softly dripped. But few expected that China would award China Eastern in this way. China Eastern is due to become the only Chinese airline with dual home hubs in Beijing and Shanghai, granting a remarkable advantage.
Rather than allow airlines to operate from both airports, Air China and its Star Alliance partners will remain at their existing Beijing Capital hub and benefit from significant slot growth. China Eastern, China Southern (which was also named base carrier at Daxing) and SkyTeam partners will gradually move to the new Beijing Daxing.
Yet this move, expected to be backed by added traffic rights, risks the two airports competing with each other rather than singularly growing the Beijing hub, which has better geography as a connecting point for Europe and North America. China Eastern may indirectly receive a second victory: fragmenting Beijing adds relative strength to China Eastern's hub at Shanghai, where it is the only intercontinental home airline. China can make sweeping policy changes, but until then China Eastern's advantage is undeniable.
Qantas has been transforming in Asia. Its partnership with Emirates and shift of European stopover hub from Asia to Dubai drove a need for Qantas to restructure its Asia network to support the local market, and not onward connections to Europe. Widebody capacity has become available as Qantas further decreases widebody services in the domestic market, which was overcompetitive and impacted by a decline in the resource sector, which was a key corporate contract focus.
In calendar 1Q2017 Qantas will operate more flights to Asia than at any time this decade, including prior to its Emirates-necessitated restructure.
Seat capacity has reduced slightly, reflecting the use of smaller aircraft (A330s instead of A380s) but Qantas still has more seats for the local market since it no longer sells onward flights to Europe. Qantas' most recent Asian additions are the relaunching of Melbourne-Tokyo (taking the service over from Jetstar, which will instead open new flights to Vietnam) and Sydney-Beijing – an important market for its JV with China Eastern as Virgin Australia signals its intent to fly to Beijing in 2017, in partnership with HNA.
Chinese New Year air traffic a boon to airlines but reflects challenges of year-round sustainability
The Chinese New Year travel season, billed as the world's largest migration, once again fills the headlines with astounding numbers of passenger movements. Some airlines set maximums on pricing, for fear of being seen as price gouging if revenue management systems followed their normal pricing curve upwards.
Even the most sceptical investors would be forgiving for contemplating airline ownership during the travel rush. The question, and lurking problem, is what happens the rest of the year.
China's concentrated and en masse travel periods present a challenge for sustainability. Airlines local and foreign are often reduced to hoping that routes will be annually profitable based on a few weeks of travel during Chinese New Year, the brief summer peak, and the autumn holidays. With load factors consistently high, yields are weakened, either on point-to-point traffic or as Chinese airlines aggressively discount connecting/transfer traffic.
On a volume basis, international traffic remains strong, expanding by an estimated 9.3 million passengers in 2016 for 22% growth. Chinese airlines continue to pivot to the international market, and Air China now has more capacity internationally than domestically.