COMPANY China Eastern Airlines Corporation, Ltd.
BRAND VALUE US$ 2.0 Billion
YEAR-ON-YEAR CHANGE 8%
YEAR FORMED 1988
China Eastern Airlines plans to enter the growing but underserved market for low- cost air travel by converting one of its operating units, China United, into a budget carrier.
The airline increased capacity to Japan, Korea and North America, while trimming some domestic routes as business traffic softened because of the slower Chinese economy and increased rail competition. In related initiatives, the airline:
- Introduced a visual brand identity with a logo featuring stylized swallows intended to give the brand a more international look.
- Added direct service between Shanghai and Toronto, in anticipation of increased trade and tourism.
China Eastern Airlines is an SOE (State Owned Enterprise) and one of China’s three largest airlines. It was listed on the New York, Hong Kong and Shanghai Stock Exchanges in 1997.
Net income declined 21 percent in the full year 2013 to $386 million on revenue of $14.4 billion, a 6 percent increase. For the first half of 2014, net income dropped 98 percent, although revenue increased slightly to $7.0 billion.