On Nov 6, the second day of the 6th China International Import Expo (CIIE), China Eastern Air Holding Company Limited (China Eastern) inked multiple purchase orders surpassing over $2.5 billion in total value. The expo’s total contract value, as well as the number and value of agreements under the Belt and Road Initiative, all hit record highs.
As one of the Chinese central state-owned enterprises based in Shanghai and the city's largest aviation company, China Eastern continued its roles as a "core support enterprise," "purchaser," "service provider," and "designated air carrier" for the Expo, based on its longstanding commitment to support the event as evidenced in the previous five CIIEs.
During this year's CIIE, China Eastern signed 14 purchase agreements with 13 suppliers from nine countries and regions, including Chile, Turkey, the United Arab Emirates, Singapore, Russia, Germany, Switzerland, the United States, and Hong Kong, China. These agreements involve a wide range of imports and services, including the procurement and maintenance of aircraft engines, aviation fuel supply, in-flight catering, and seafood and agricultural products from countries involved in the Belt and Road Initiative.
China Eastern inked multiple purchase orders surpassing over $2.5 billion in total value at the 6th China International Import Expo, on Nov 6. [Photo/sasac.gov.cn]
Purchase orders focused on core aviation business
Since the beginning of this year, China's civil aviation has seen steady and swift recovery. With good market prospects, China Eastern signed agreements focused on core aviation products and services characterized by high technological content and a commitment to eco-friendliness, including engine procurement and maintenance services, as well as auxiliary power unit (APU) purchase and authorized maintenance.
At this CIIE, China Eastern signed a contract with Honeywell for the selection of 131-9A APUs for 100 A320/A321NEO aircraft. These APUs are renowned for their reliability and low maintenance costs throughout their lifecycle, resulting in significant annual fuel savings. Honeywell has provided optimal conditions in terms of APU component procurement, maintenance costs, and support services, helping China Eastern further reduce existing APU maintenance costs, enhance APU maintenance capabilities, and contribute to higher-quality aircraft operations.
As early as the third CIIE, China Eastern signed a contract with Honeywell to provide 131-9A APUs for 36 Airbus A320NEO aircraft, as well as training and related services.
At the agreement signing ceremony, the person in charge of Honeywell said that it’s such a pleasure to once again reach cooperation with our long-term partner China Eastern through the CIIE, and this will further deepen the partnership between the two parties."
China Eastern also inked an agreement with another long-term partner, GE Aviation, for ongoing cooperation on the GEnx engines and maintenance, striving to foster a cost-effective engine operation support system.
King crab and salmon orders worth $1.5 billion signed with countries along the Belt and Road
As 2023 marks the 10th anniversary of the Belt and Road Initiative, one-third of China Eastern's purchase agreements this year came from the Belt and Road countries, amounting to a total order value of $1.577 billion.
During the CIIE, China Eastern signed a $1 billion contract with Russia's Antry Group for king crab and a $500 million salmon order with Chile's Aquachile, both substantial purchases at this year's expo.
Over the years, China Eastern has leveraged its logistics innovations and reforms in Chinese civil aviation to establish a fresh product logistics industrial chain characterized by "direct from origin", serving as an air bridge for trade cooperation between China and the Belt and Road countries.
"China Eastern's partnership with Aquachile can be dated back to 2018. With the assistance of China Eastern Logistics, the amount of salmon sold by Aquachile to the Chinese market has steadily grown. We believe that this collaboration with China Eastern will set a new example for commercial trade cooperation between China and Chile," said the head of Aquachile at the signing ceremony. At the invitation of China Eastern, Aquachile participated in the CIIE for the first time.
Additionally, China Eastern's agreement with Antry Group from Russia will pioneer a new model for scheduled charter flight transportation of king crabs. The airlines will rely on its professional capacities to bring global high quality fresh food to Chinese consumers and open up new markets for international partners.
Furthermore, as China Eastern's international routes recover rapidly, China Eastern is increasing its procurement of in-flight catering and aviation fuel. During this CIIE, China Eastern signed agreements with dnata catering, one of the world's largest aviation service operators based in the United Arab Emirates, and China Aviation Oil Singapore.
China Eastern inks multiple purchase orders surpassing over $2.5 billion in total value at a centralized signing ceremony during the 6th China International Import Expo, on Nov 6, 2023. [Photo/sasac.gov.cn]
Shared opportunities in China through CIIE
While each CIIE lasts only a few days, for China Eastern, the value of the expo lies in collaborating with global partners to continuously empower high-quality development of enterprises.
Take fresh produce procurement for example. China Eastern signed large orders for Chilean cherries worth hundreds of millions of dollars at previous expos. The airlines enabled Southern Hemisphere cherries to reach the tables of thousands of Chinese households through its intercontinental express supply chain. Since April 2023, China Eastern Logistics has also launched a salmon charter route from Santiago to Chengdu, Sichuan Province and Zhengzhou, Henan Province, allowing Chilean salmon to reach Chinese consumers in a shorter time and with higher quality. The success of the earlier fresh produce logistics express line paved the way for substantial purchases of Chilean salmon in this year's expo.
Since the first CIIE, China Eastern has consistently utilized its "Global Flight" advantage to build mutually beneficial and long-term cooperative relationships with enterprises along the industrial chain.
China Eastern purchased more and more products and services globally and has established a wider range of cooperation around the world through the CIIE. The company will take the opportunity and contribute its wisdom and strength to maintaining the stability of the global aviation industrial and supply chains and boosting new dynamics in global economic development.
(Executive editor: Xie Yunxiao)
