China Eastern Airlines


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MU: Eastern Airlines Air China

MU: Eastern AirlinesChina Eastern Airlines Corporation Limited, incorporated in April 1995, is an air carrier company that operates primarily from Shanghai's HongQiaoInternationalAirport and PudongInternationalAirport. The primary focus of the Company's business is the provision of domestic, Hong Kong regional and international passenger airline services. During the year ended December 31, 2003, the Company's passenger traffic volume totaled 18,002.7 million passenger kilometers. Its cargo and mail traffic volume totaled 1,296.6 million ton kilometers. During April 2003, China Eastern acquired a 45% equity interest in Eastern Aviation Import and Export Company. In December 2003, China Eastern entered into a joint venture agreement with CEA Holding to establish China Eastern Air Catering Investment Company Ltd. In December 2003, the Company acquired a 45% equity interest in Shanghai Dong Mei. In February 2004, China Eastern entered into a joint venture agreement with CEA Holding to establish China Eastern Real Estate Investment Co. Ltd. (CEA Real Estate). Search Live China Flights Schedule

Passenger Operations

In 2003, China Eastern's passenger operations generated revenues of approximately 76.3% of its operating revenues. The Company operated over 3,090 scheduled flights per week (excluding charter flights), serving a route network that covered 81 cities within China and abroad. In 2003, the Company operated approximately 210 routes. In 2003, China Eastern operated approximately 1,894 domestic flights per week on 152 routes. The Company's domestic routes generated approximately 54.4% of its passenger revenues. China Eastern's busy domestic routes generally link Shanghai to the commercial and business centers of China, such as Beijing, Guangzhou and Shenzhen.

In 2003, the Company also operated approximately 400 flights per week on 14 routes to and from Hong Kong, originating from Shanghai and 13 other major cities in eastern and northern China. China Eastern's Hong Kong regional routes accounted for approximately 15.9% of its passenger revenues in 2003.

In 2003, the Company operated approximately 296 international flights per week on 44 routes, serving 30 cities in 11 countries, primarily linking Shanghai to major cities in east and southeast Asian countries (Japan, Korea, India, Singapore and Thailand) and certain strategic locations in Europe, the United States and Australia. In 2003, China Eastern launched passenger routes of Shanghai-Phuket and Shanghai-Melbourne. In addition, the Company terminated the Shanghai-Munich-Madrid route and increased the flight frequency on the Shanghai-Paris passenger route in order to retain European passengers. The launch of the international transit route from Sydney to Paris via Shanghai improved its capacity in providing transit services. China Eastern also enhanced its services on the China-United States routes by replacing the old MD-11 aircraft with Airbus A340-600 aircraft. Revenues derived from operations on international routes accounted for approximately 29.6% of the Company's passenger revenues. Revenues derived from operations on its 11 Japan routes accounted for approximately 9.5% of its passenger revenues and approximately 32.1% of its international passenger revenues in 2003. China Eastern's Korea and Japan international routes and Hong Kong regional routes generally have been its higher yielding routes. Search Live China Flights Schedule

A majority of the Company's international and Hong Kong regional flights and a substantial portion of its domestic flights either originate or terminate in Shanghai, the central hub of its route network. China Eastern's operations in Shanghai are conducted primarily at Hong Qiao Internationa lAirport and Pudong International Airport. All of its international flights originate or terminate at PudongInternationalAirport. The Company also has nine provincial hubs in eastern and northern China, each of which primarily serves, and is located in, a principal commercial center of Anhui, Jiangsu, Jiangxi, Shandong, Shanxi, Hebei, Zhejiang and Hubei provinces.

In this segment, the Company competes with Air China, China Southern Airlines, Dragon Air, United Airlines, All Nippon Airways, Japan Airlines System, Northwest Airlines, Inc., Thai Airways International, Singapore Airlines, China Southern Airlines, KLM-Royal Dutch Airlines, Air France, Lufthansa German Airlines and Qantas Airways Ltd.

Cargo and Mail Operations

China Eastern's cargo and mail business generated revenues of approximately 23.7% of its operating revenues for 2003. The Company's cargo and mail business utilizes the same route network used by its passenger airline business. China Cargo Airlines Limited also maintains seven cargo routes. China Eastern carries cargo and mail on its freight aircraft, as well as in available cargo space on its passenger aircraft. The Company's significant cargo and mail routes are international routes. Revenues derived from operations on international cargo and mail routes accounted for approximately 79% of China Eastern's total cargo and mail revenues in 2003. Revenues derived from operations on routes to Japan accounted for approximately 23.4% of the international cargo and mail revenues in 2003. In 2003, the Company successively launched cargo routes of Shanghai-Beijing-Luxembourg and Shanghai-Anchorage-Los Angeles-Seattle-Dallas-Chicago.

After the establishment of China Cargo Airlines Limited, China Eastern has converted six MD-11 passenger aircraft into freight aircraft that are designated for cargo and mail operations, three of which were converted in 2003. During 2003, the Company also wet-leased a Boeing B747-200 freighter aircraft for its cargo operations.

In the cargo and mail business, China Eastern competes with All Nippon Airways and Japan Airlines System. Search Live China Flights Schedule


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