CHINA: China Eastern looking to tap SIA’s expertise

China Eastern Airlines expects to improve its financial and operational performance greatly on international routes through its planned cooperation with Singapore Airlines, according to CEA Board Secretary Luo Zhiping. "Currently we [lose] between CNY1 million ($134.000)-CNY2 million in one flight from Shanghai to New York," Luo said according to ATW Online. "And our average load […]


China Eastern Airlines expects to improve its financial and operational performance greatly on international routes through its planned cooperation with Singapore Airlines, according to CEA Board Secretary Luo Zhiping.

"Currently we [lose] between CNY1 million ($134.000)-CNY2 million in one flight from Shanghai to New York," Luo said according to ATW Online. "And our average load factor of business class/first class is 30-40 per cent in international routes while this figure is more than 90 per cent [for] SIA, so we hope to raise our figure to 70-80 per cent in partnership with SIA."

SIA and parent Temasek recently signed a definitive agreement to buy 15.7 and 8.3 per cent stakes respectively in CEA, with the Singapore carrier pledging signifi cant cooperation with the Shanghai-based carrier.

The airlines are considering operating a joint Singapore-Shanghai-New York route that would include cooperation on sales, cabin layouts and service. Luo added that approval by CEA shareholders of the SIA stake purchase is expected in January.