20 Jul 2021

China Aviation Industry Newsletter 20 July

AlisCargo Airlines signs partnership with China Eastern Airlines AlisCargo Airlines has signed a partnership with China Eastern Airlines. The first phase of the alliance foresees air connections between Milan's Malpensa airport and Jinan Yaoqiang. AlisCargo CEO Francesco Rebaudo stated “China Eastern leases all our capacity for flights from China to Italy. They take care of selling the flights on the Chinese market. We will operate for them as a pure charter, with three frequencies per week. Instead we sell capacity for flights from Malpensa to China. We already have contracts with a number of freight forwarders. There is a strong interest in an initiative that will favor the export of Italian products ”. Chinese airlines target domestic demand Major Chinese airlines are increasing domestic routes to tap the peak summer season, aiming for further domestic demand to offset reduced international travel activity. China Eastern expects to operate 180,000 flights in July and August to domestic destinations. The Civil Aviation Administration of China (CAAC) said this month it will extend an 8% cut on the benchmark difference between the sales and purchase price of jet fuel used in domestic flights operated by domestic airlines. Analysts have estimated that this translates to about an average of more than 30 yuan/t ($4.64/t) in savings for airlines. China Southern Airlines to Be Country’s First to Test IATA Covid Pass China Southern Airlines recently has signed an agreement with the International Air Transport Association (IATA) on a travel pass, making it the first airline in the Chinese mainland to participate in the IATA Travel Pass scheme. The move is set to promote the integration of China's international travel health certificate with international standards, according to China Southern. MoFo Advises on China Eastern Airlines’ Issuance of SGD500 Million Credit Enhanced Bonds MoFo advised Eastern Air Overseas (Hong Kong) Corporation Limited, a wholly-owned subsidiary of China Eastern Airlines Corporation Limited (670.HK), in its issuance of SGD500 million 2.00% Credit Enhanced Bonds due 2026. Acumen Aviation © 20 July 2021 All Rights Reserved.