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China Eastern to hasten international expansion pace

China Eastern Airlines Airbus A321

China Eastern Airlines Airbus A321

By Rob Finlayson

China Eastern Airlines plans to speed up its international expansion pace this year as international market demand gradually recovers and domestic market demand slows. + China Eastern GM Ma Xulun predicted international market demand will improve over last year. He noted the global economy is slowly recovering while domestic economic growth is slowing down, leading to the slowdown of domestic market demand. Also, the rapid construction of China’s high-speed rail is negatively ...

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Discuss this Article 1

Night Watchman
on Mar 23, 2013

China Eastern is well equipped to launch / expand International operations.

To this end, its fleet includes, e.g. :

•--- 13 x A330-200 (with 8 more order to be delivered) ;
•--- 15 x A330-300 (with 15 more on order, as per order of October , 2011 ? ) ;
•--- 5 x A340-600 (doing very well, but to be phased out, and replaced by B777-300ER, with a growth plan entrusted to this component, of which there appear to be 20 on order & to be delivered – that number seems good -- ... allegedly placed at rock-bottom prices, .... all wrapped up in a re-marketing commitment by Boeing on the A340-600 ; but no-one on the outside really knows these alleged details, which are speculative, and could be media trash).
------------

Anyway, that entry of B777-300ER into China Eastern’s fleet, whatever the commercial & financial conditions, is good for Boeing.

However, a hard, irrefutable combination of facts, WITHOUT SPECULATION (save as stated) , is that :
•--- In 2005, China Eastern Airlines placed an order for 15 x B787 ;
•--- the airline cancelled the B787 order, owing to the program's continuous delays ;
•--- and switched, reportedly, to a batch of B737-800NG (in an order of 43, still to be delivered, over & above 22 x B737-800 already in the fleet, & alongside some 47 x B737-700 ; on domestic flights, at this stage, B737-MAX is no good to the airline, which, in any case, needs PUC urgently ;
however, people said to be close to the dossier, have, reportedly said that all that is ‘cosmetics’ ; the 20 x B777-300ER would appear to be “compensations orders” for the 15 x B787 cancelled, in a transaction based on the knock-down promotion-cum- launch price for B787’s of US$ 120 million per unit -- highly possible, indeed, probable, but speculative ; not least because this order for 20 x B777-300ER is seemingly separate from the B737-800 NG orders mentioned above, and, reportedly, still subjected to the on-going Government approval process ; accordingly, .....“wait & see”).

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