CEA China Eastern Airlines Corp Ltd

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Certain statements contained in this announcement may be regarded as “forward-looking statements” within the meaning of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The forward-looking statements included in this announcement represent the Company’s views as of the date of this announcement. While the Company anticipates that subsequent events and developments may cause the Company’s views to change, the Company specifically disclaims any obligation to update these forward-looking statements, unless required by applicable laws. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this announcement.

“To ‘see that our people will always have a strong sense of fulfillment, happiness, and security’, and for our common sustainable development, we will continue to follow the five development concepts of “innovation, coordination, green development, opening up and sharing”, fully implement the 2030 Agenda for Sustainable Development, and join hands with stakeholders to head towards the new journey of sustainable development.”

The new era embarks on a new journey. In 2017, the 19th CPC National Congress proposed that the principal contradiction facing Chinese society in the new era is that between unbalanced and inadequate development and the people’s ever-growing needs for a better life. As we enter the new era, the needs should be increasingly broadened. Not only have their material and cultural needs grown; their demands for democracy, rule of law, fairness and justice, security, and a better environment are increasing. Meanwhile, the vision “to build a community with a shared future for mankind, and to build an open, inclusive, clean, and beautiful world that enjoys lasting peace, universal security, and common prosperity” shares the common goal with the 2030 Agenda for Sustainable Development, proposing new requirements and striving direction for enterprises including China Eastern Airlines that are committed to sustainable development by fulfilling social responsibilities in the new era.

We are deeply aware that safety is a significant part of people’s needs for a better life. In 2017, China Eastern ensured the safety in all dimensions, with considerable increase in safety quality. In the new era, the connotation and denotation of safety has become ever more abundant, the time and space of safety ever wider, and the internal and external factors affecting safety ever more complicated than any time in the past. Thus, for the safety work in the new era, we must pursue a holistic approach to national security, put national interests first, take protecting our people’s security as our mission and safeguarding political security as a fundamental task, and resolutely safeguard China’s sovereignty, security, and development interests. With zero- tolerance for hidden safety hazards, we endeavor to build safety ecology and safety culture.

The Belt and Road Initiative proposes that we need to develop a safe and efficient network of land, sea and air passages, lifting their connectivity to a higher level. The passenger flow, logistics, capital flow and information flow carries by the civil aviation industry is internationalized, and acts as an important channel of cultural and people-to-people exchange, economic and trade exchanges, and technical promotion. Based on the overall situation, we regard building a Silk Road in the air as the threshold and effective way to enable China Eastern to serve the Belt and Road. In 2017, we continued to build the air transport hub network that matches the Silk Road in the air and the transformational path that connects with the Silk Road in the air. In the new era, we propel the construction of the Belt and Road, further promote the building of all-dimensional, multi-tiered and composite connectivity networks, and will serve as a pioneer in connectivity between China and countries along the Belt and Road and that among the countries along the Belt and Road.

The interaction between globalization, the internet and the aviation industry has directly transited humans to the era of information, changing everyone’s life. Nowadays, the new normal of internationalization and internet-based upgrading has also opened new development space for the aviation industry. Through the supply-side structural reform, China intends to provide you with broader network, better products and services, create new opportunities and generate new values. In 2017, we were concerned for technical optimization and upgrading, and focused on making businesses serve people to pursue providing the best customer experience and transportation plan in our internet-based development. In the new era, the fundamental issue of business model transformation and upgrading for us is to center on customer value and ensure the development results to meet people’s ever-growing needs for transportation.

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In the international arena, the international climate treatment process represented by Paris Agreement has entered the implementation phase, winning recognition for green economy and low-carbon development across the world. In order to facilitate China to achieve legally binding targets for cutting gas emissions and fully tap the potential of the aviation industry in emission reduction, we continued to promote green aviation and energy conservation through innovative thinking and technical improvement, actively gave our voice on behalf of China aviation industry on international meetings, and strived to facilitate addressing the global climate change issues in 2017.

Our businesses serve the building of national strength, national defense and people’s wellbeing. A longer flight, a bigger obstacle and even more challenges will not shake our resolution and confidence in responsibility fulfillment. In 2017, when the country and the people need us, we responded instantly and took off in the fastest speed to take actions. We completed several emergency transportation tasks, evacuating Chinese nationals and foreign friends troubled by Hurricane Maria in Dominica and erupted volcanoes in Bali Island. With strength and courage, we fulfilled our responsibilities as a representative of a great China. The task of ending extreme poverty and hunger as required by the United Nations Millennium Development Goals (MDGs) was completed in 2015; in the new stage, a new poverty alleviation task has been proposed in the Sustainable Development Goals (SDGs). Under such circumstances, we take local economy and transportation development level into account to continuously work on poverty alleviation by supporting the aviation cause with our own business advantages. China Eastern has promoted poverty alleviation through aviation support in Yunnan Province for over 15 years, helping poor areas connect to the world.

Much though we have achieved, we need to enhance efforts to explore more. With a development history of 60 years, China Eastern has launched a new journey toward sustainable development. To “see that our people will always have a strong sense of fulfillment, happiness, and security” and for our common sustainable development, we will continue to follow the five development concepts of “innovation, coordination, green development, opening up and sharing”, fully implement the 2030 Agenda for Sustainable Development, and join hands with stakeholders to head towards the new journey of sustainable development.

Liu Shaoyong

Chairman

China Eastern Airlines Corporation Limited

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About the Report

Reporting Change

This report is prepared in accordance with The GRI Sustainability Reporting Standards issued by the Global Sustainability Standards Board (GSSB). The report focuses more on the disclosure of how we handle material topics and elaborates on specific measures and performances in relevant issues; meanwhile, the report further maps social responsibilities of China Eastern Airlines Airlines against the Sustainable Development Goals (SDGs).

Reporting Objectives

Since 2009, China Eastern Airlines has released the corporate social responsibility report annually. It discloses the Company’s CSR concepts and practices, promotes understanding, communication and interaction between the Company and its stakeholders, facilitates the establishment of trust and cooperation based on the same value identification, and fosters sustainable development of the Company and the society. This is the 10th corporate social responsibility report released by China Eastern Airlines Corporation Limited.

Reporting Period

The data and the contents in the report mainly cover the Company’s management and practice from January 1, 2017 to December 31, 2017. Some data and contents may extend beyond the time scope if necessary.

Reporting Cycle

The report is published annually. The latest report was released in March, 2017.

Reporting Scope

The entire company (including its branches and wholly owned subsidiaries) and some practices may from the holding subsidiaries.

Eastern Air Logistics Co., Ltd. (Eastern Logistics) was emerged from China Eastern Airlines Corporation Limited in February 2017. Part of the data in the report may cover the management and practice of Eastern Logistics in January 2017.

Compilation Conformance

This report was prepared in accordance with Guidelines to the State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities issued by State-owned Assets Supervision and Administration Commission of the State Council (SASAC), Environmental, Social and Governance Reporting Guide(HK-ESG) issued by Hong Kong Exchanges and Clearing Limited, Guidelines on Preparation of CSR Reports and Notice on Further Improvement of Poverty Alleviation Work Performance Disclosure of Listed Companies issued by Shanghai Stock Exchange, GB/T 36001 Guidance on Social Responsibility Reporting, GRI Sustainability Reporting Standards (GRI Standards) is sued by the Global Sustainability Standards Board (GSSB), Guidance on Social Responsibility (ISO 26000:2010) issued by International Organization for Standardization (ISO), the UN 2030 Agenda for Sustainable Development, and supplement guidelines in aviation service industry. With systematic integration of crucial guidelines and standards, the report has served as a response to stakeholders’ expectations and requirements and highlighted industrial features and corporate characteristics.

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Data Source

Relevant information, data and case studies were collected from China Eastern Airlines and its subsidiaries and branches. All the materials have been reviewed by relevant departments.

Reference

To facilitate presentation and reading, “China Eastern Airlines Co., Ltd.” in this report also was referred to as, “China Eastern”, “the Company” and “We”. “China Eastern Air Holding Company” was referred to as “China Eastern Group”. The subsidiary “Shanghai Airlines Co., Ltd.” was referred to as “Shanghai Airlines”. “China United Airlines Co., Ltd.” was referred to as “China United Airlines”. “Eastern Airlines Technology Co., Ltd.” was referred to as “the Technology Company”. “China Eastern Airlines Wuhan Co., Ltd.” was referred to as “the Wuhan Company”. “Shanghai Eastern Flight Training Co., Ltd. (China Eastern Flight Safety Technology Institute)” was referred to as “the Flight Training Company (Institute)”. “China Eastern Business Jet Co., Ltd.” was referred to as “the Business Jet Company”. “Shanghai Airlines Tours International (Group) Co., Ltd.” was referred to as “Shanghai Airlines Tours International”. “Eastern Air Logistics Co., Ltd.” was referred to as “the Logistics Company”. All branches were referred to as “the name of region + branch”.

Report Access

The report is available in Chinese and English versions. For any discrepancies between the two versions, the Chinese version shall prevail. The report was released in printed and electronic formats. You can download the electronic report on the website of Shanghai Stock Exchange and the Company’s website (www.ceair.com). If you need a printed report or have any suggestion, please contact us as follows:

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Contacting Department: Party Publicity Department of China Eastern Airlines

Telephone: 021-22331435

Fax: 021-62686883

Address: 92, Konggang No.3 Road, Changning District, Shanghai

Zip Code: 200335

报告编制流程

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About China Eastern

Headquartered in Shanghai, China Eastern Airlines Corporation Limited originates from the first squadron of Shanghai in 1957. The Company is a Sino-foreign joint venture exclusively initiated by China Eastern Group and one of the three state-owned backbone airlines of China. Major businesses of China Eastern cover domestic and approved international and regional flights of passenger, freight, mail, and luggage transport as well as extended services. Other businesses include general aviation services, aircraft maintenance, aviation equipment manufacturing and maintenance, agency services for domestic and foreign airlines, insurance and agency services, E-commerce, air markets, wholesale, retail and other businesses related to air transport. The Company has ten branches, 21 subsidiaries and 59 overseas outlets and offices. The number of passengers served by China Eastern has exceeded 100 million, ranking 7th in the world.

Eastern Airlines Logistics Co., Ltd. emerged from China Eastern Airlines Corporation Limited in February 2017; in June 2017, Eastern Airlines Logistics Co., Ltd. realized a diversified equity structure.

Fleet structure

Note: Given that Eastern Airlines Logistics Co., Ltd. emerged from China Eastern Airlines Corporation Limited, the freight aircrafts quantity of 2017 of China Eastern Airlines Corporation Limited is 0.

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China Eastern 2017

60th Anniversary of China Eastern

In January 2017, China Eastern held a symposium in Shanghai to retrospect the glorious development history of China Eastern and look forward the promising future. On the meeting, 60 outstanding employee representatives, who keep up with the times in thinking and practice in the past 60 years, were awarded. The Company also called for all cadres and employees to be confident in building a world-class airline and a happy China Eastern.

Air Medical Experts

In April 2017, China Easternsigned a cooperation agreement with Shanghai Volunteering Physician League (SVPL ) to officially launch the project of “Air Medical Experts”. China Easternbuilt the first air medical expert team consisting of over 120 people. Moreover, China Eastern further improved the air emergency rescue service system and will conduct first aid service against sudden disease outbreaks in the air more efficiently and professionally.

Free-Flight Escort of C919

In May 2017, one business jet of China Eastern took off with C919 - the first large passenger airplane independently developed by China, and implemented the special task of free-flight escort, exploring flight path and monitoring C919.

Pilot Project of Mixed Ownership Reform in Aviation Sector

In June 2017, China Eastern Group officially signed the capital increase agreement, the shareholder agreement and the articles of association with four investors, i.e. Legend Holdings Corporation, Prologis, DEPPON LOGISTICS Co., LTD. and Greenland Group, symbolizing the completion of mixed ownership reform in national civil aviation sector, a pilot project of mixed ownership reform in the first batch of seven sectors. In July 2017, the mixed ownership reform of Eastern Logistics was included as a typical high-level SOE reform case in the political commentary To Reform in the End by the CPC Central Committee.

Initiating R&D Center

In June 2017, China Eastern Airlines Technology R&D Center Co., Ltd. was founded and put into operation. It offers a wide range of R&D trainings in eight areas including aviation technology, aircraft maintenance, air service, ground service, leadership development, operation support, business marketing and air security. It will build a comprehensive development platform integrating production, teaching and research, and a science and technology innovation center that has influential in global civil aviation industry.

Building a New Air Transport Hub in Beijing

In June 2017, the base construction project of China Eastern Beijing New Airport (Beijing Daxing International Airport), with a total investment of RMB 13.2 billion, was officially initiated construction. In December 2017, the ground breaking ceremony was held for the construction of the core area. The project covers about 930 mu (620,000m ² ) and the construction scale reaches 1.17 million m ² . The base was planned and constructed according to the target of 40% of air passenger turnover for Beijing New Airport (about 30 million person-times). This is a strategic initiative for China Eastern to participate in the building of a new air transport hub in Beijing in line with national positioning and the construction of the Xiongan New Area.

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Becoming the Important Force in Global Aviation Industry

In July 2017, with an investment of 375 million Euros, China Eastern Group jointed hands with Delta to purchase about 10% shares of Air France-KLM Group, and assigned one Board director to Air France-KLM Group. The new layout of global aviation industry that China Eastern Group actively participates in has gradually formed.

The 20th “Dabai” (Boeing B777-300ER Airplane)

In July 2017, No.B-7882 Boeing B777-300ER Airplane arrived at Shanghai Pudong International Airport from Seattle-Tacoma International Airport, symbolizing the complete delivery of 20 Boeing B777-300ER Airplanes that were purchased by China Easternin April 2012.

The internet-based China Eastern

In September 2017, China Eastern held the internet-based strategy seminar to study the development direction of the Company in upcoming five and ten years, systemically plan the internet-based strategy, and make efforts to build modern airline enterprises ecology. In 2017, China Eastern comprehensively deepened strategic cooperation with Alibaba, Tencent, JD.com and Ctrip, etc. to plan a shared future of “Internet + aviation”.

Taking You Home

In September 2017, Hurricane Maria hit The Commonwealth of Dominica (a Caribbean island country). After receiving the notification issued by the Ministry of Commerce and Civil Aviation Administration of China (CAAC) on assigning airplanes to rescue Chinese nationals back home from Dominica, China Eastern instantly initiated the contingency response mechanism and dispatched two airplanes to Antigua and Barbuda (an island country located in Central America). From September 28 to October 1, China Eastern dispatched the two airplanes after less than 24 hours of preparation and the two airplanes continuously worked for 72 hours. On Chinese National Day, China Eastern rescued 381 Chinese nationals trapped by the hurricane in Antigua and Barbuda.

The air transport task, flying over 19 countries with a distance of 35,000 m ² , has made several records in overseas flight rescue such as the longest flight, the longest flying time, the shortest preparation time, flying over the most countries, China civil aviation flight’s first landing in Antigua and Barbuda, and the first flight of China Eastern passing over the Atlantic Ocean, etc.

On October 30, the State-owned Assets Supervision and Administration Commission (SASAC) praised China Eastern Group for our great contribution to the rescue and the General Office of the Ministry of Commerce also sent a commendatory letter to China Eastern Group.

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The successful contingency rescue is a specific manifestation of China Eastern maintaining “Four Consciousness”, studying and implementing new ideas, new thinking, and new strategies in the governance of the CPC Central Committee with Comrade Xi Jinping as the core. It is also a vivid interpretation of Six Powers of SOEs, fully displaying the political and social responsibilities of China Eastern as a central SOE, the new image of Chinese SOEs in the new era, and the image of China as a great and prosperous nation.

The contingency rescue work was widely and thoroughly reported by the media such as People’s Daily, the Xinhua News Agency and China Central Television (CCTV), winning great attention and compliments from relevant governmental departments and the society.

Note:

“Four Consciousness”: maintain political integrity, think in terms of the big picture, follow the leadership core, and keep in alignment.

“Six Powers”: the power that the Party and the nation can trust most; the power to unswervingly implement the Party Central Committee’s decisions and plans; the power to apply a new vision of development and deepen reform in all areas; the power to implement the strategy of “Going Global” and the Belt and Road Initiative, etc.; the power to enhance overall national strength, promote economic and social development, and ensure and improve people’s livelihood; the power to facilitate the Party to win historic victories.

Watching the CPC National Congress in the Air

On the opening day of the 19th CPC National Congress in October 2017, China Eastern cooperated with people.cn to provide passengers on board with live broadcast service through airplane WIFI, wining high compliments from passengers.

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Aircraft Maintenance “Dream Team”

In November 2017, China Eastern won several prizes in the First Professional Aircraft Maintenance Skills Competition of China Civil Aviation, including two group prizes (one first prize and one second prize) and nine individual prizes (three first prizes, four second prizes and two third prizes). The contestants from China Eastern won honors such as National Civil Aviation Youth Expert in China’s Civil Aviation, National Civil Aviation Gold-Medal Winner, National Civil Aviation Technical Expert, etc.

New Breakthrough in Reform

In December 2017, China Eastern canceled the Passenger Transport Marketing Commission and the Department of Service Management, and set up the Business Commission, the Sales Commission and the Customers Commission. This is a major decision made for corporate reform and reflects China Eastern’s endeavors to adapt to the new competition situation, respond to the requirements of internationalized and the internet-based development, and improve customers’ experience and its core competitiveness.

Sustainable development is a goal shared by all humans; however, the human society and the earth are facing great economic, environmental and social challenges. The 2030 Agenda for Sustainable Development and major policies and initiatives proposed by China such as poverty alleviation and the Belt and Road Initiative have set up the guideline and framework for global sustainable development. While promoting global sustainability, China, as the biggest developing country and the most active economy, not only plays the role of a participant, but serves as a leader that offers Chinese wisdom and Chinese approach to solving the problem of sustainability facing mankind. As a backbone state-owned airline, China Eastern is deeply aware that, the Company’s advantages and joint efforts with stakeholders will possibly turn challenges into opportunities and promote sustainable development.

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1.1 Focus Area 1: Promoting Connectivity

The proposal of the Belt and Road Initiative considerably expands our vision in opening up and creates broad space for Chinese enterprises to compete in global market. The transport connectivity is the premise and foundation of policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bond among countries along the Belt and Road. Nowadays, aviation transport has not only been a transport way, but become an express pass for regional economy to join global economy. The technical attributes and special functions of aviation transport decide that Chinese civil aviation will make distinctive contributions in connectivity of the Belt and Road Initiative.

China Eastern has always put the cause of civil aviation at the national strategy level, committed ourselves to the construction of the Belt and Road, and actively built the Silk Road in the air, striving to building a network of land, sea and air passages for integration and opening up, and making contributions to global connectivity.

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1.2 Focus Area 2: Combating Climate Change

Global climate change proposes severe challenges to social development and people’s livelihood. The greenhouse gas emissions generated by the aviation industry is one of top ten emission sources in the world, accounting for 2.5 percent of the total. Aviation fuel is the main source of greenhouse gas emissions in aviation industry and it costs the most. Global climate change is also a factor directly affecting operational stability of aviation industry. Extreme weather poses hidden safety hazards and increases the probability flight delays in aviation transport.

The United Nations Sustainable Development Goals (SDGs) calls for the whole society to combat climate change. China has also joined Paris Agreement and plays an increasingly significant role in dealing with global climate change. As one of the top three state-owned aviation transport groups in China, China Eastern has continuously paid attention to the development and application of bio-fuel, explored business extensions of the market-oriented business model and the internet thinking in energy conservation and emission reduction, and actively given the voice of Chinese airlines in international industry meetings, endeavoring to solve the issue of global climate change.

Practicing emissions reduction in an innovative way

Innovation is the driving force for China Eastern to achieve maximum comprehensive value of development and environmental protection. China Eastern has been committed to technical innovation in a series of carbon emission reduction technology optimization projects and made continuous achievements in technical innovation for energy conservation, realizing fuel saving, emission reduction, efficiency improvement and cost reduction. The paperless application system of China Eastern EFB cockpit has entered the third development phase. The paper flight mission documents are replaced by electronic flight mission documents; the cockpit is completely paperless, reducing over 400,000 tons of carbon emissions in average per annum. Moreover, China Eastern has made full use of the concepts of Industry 4.0 and the “Internet +”, conducted deep research on previous engine operation data, and independently developed the smart engine cleaning equipment - EngineCare technology to reduce engine operation & maintenance costs, improve aviation fuel utilization rate, cut down on carbon emissions, and practice the ecological development road of “green flight, scientific environmental protection”.

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Actively participating in carbon trading

The carbon trading market mechanism is an effective supplementary approach and a brand new way of energy conservation and emission reduction for airlines. As the first large airline to participate in domestic carbon trading, China Eastern is concerned for and engaged in the formulation of rules of domestic and foreign carbon trading market mechanisms. Through discussing and analyzing domestic and foreign policies on climate change, China Eastern finalizes our own plans to response to the 13th Five-Year Plan of China and to contribute to the fulfillment of China’s promise to Paris Agreement . China Eastern has also formulated the Regulations on Carbon Emission Management to regulate carbon emission management and control carbon trading management processes. In addition, China Eastern successfully completed the settlement of carbon trading in Shanghai during 2013 to 2016.

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1.3 Focus Area 3: Implementing Aviation Poverty Alleviation

The transport development promotes the chain development of infrastructure, energy and environment in poverty-stricken areas and generates positive knock-on effects. Among all kinds of transport ways, aviation transport is such a kind with the highest speed, the most convenience and the lowest pollution. Aviation transport is conductive to local employment, investment and economic trade, promotes the development of regional economy and urbanization, and contributes to poverty elimination and people’s livelihood. China Eastern has been dedicated to poverty alleviation in Shuangjiaing County and Cangyuan County in Lincang, Yunnan Province for years. Aviation poverty alleviation is one of priorities of China Eastern to draw on our advantages in main businesses to promote poverty alleviation, and also one predominant feature of China Eastern in fixed-point poverty alleviation. Compared with cash and in-kind contributions, aviation poverty alleviation is an indirect way of poverty alleviation, and it is a poverty alleviation model with the most operability and sustainability, which is summarized by China Eastern through years of practice in poverty alleviation. Transport poverty alleviation is one of the most powerful measures of poverty alleviation to enable our people to have a strong sense of fulfillment, playing a vital role in poverty alleviation work in poor areas.

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Corporate value system and strategy is the spirit and core of a company and decides the development direction of a company. Only by combining sustainable development goals with corporate development and integrating them into corporate vision, mission, values and strategies can a company consider social and environmental factors in decision-making and value creation processes, embracing the inclusiveness of CSR goal and business goal. Upholding the development vision of “Creating a world-class airline, building a happy China Eastern”, China Eastern has continuously identified the relationship between the Company’s businesses and social responsibility and their impact on sustainable development to enrich CSR connotations and form CSR concepts and management with the Company’s characteristics.

2.1 Corporate Strategy and Governance

China Eastern has gradually improved and finalized the new development framework, namely to take comprehensively deepening reform as the mainline, focus on internationalized and internet-based development, regard transformational development, brand building and capability improvement as the three guarantees for realizing the development vision of “Creating a world-class airline, building a happy China Eastern”. Meanwhile, the Company actively responds to the call of the 19th CPC National Congress to “turn Chinese enterprises into world-class, globally competitive firms”. According to the strategic two-stage development plan for the period 2020 to the middle of this century proposed on the 19th CPC National Congress, and our new development framework, we perceived the new mission and new responsibility of a central SOE, focus on the principal contradiction and prominent problems in different development stages, and have accordingly identified the three strategic stages of reform and development.

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The Strategic Process of Reform and Development of China Eastern in The New Era

China Eastern strictly complies with domestic and overseas listing rules and relevant laws and regulations, and constantly improves the modern corporate governance structure consisting of shareholders’ meeting, board of directors, board of supervisors and management which form a check-and-balance mechanism. The Shareholders’ Meeting, Board of Directors, Board of Supervisors and the management perform their respective duties independently in accordance with the Articles of Association. There are Nomination and Remuneration Committee, Audit and Risk Management Committee, Planning and Development Committee and Aviation Safety and Environment Committee to assist and support the Board of Directors. the Board of Directors consisted of 11 directors, among whom four were independent directors.

In 2017, the Company amended the Articles of Association and the Rules of Procedure for the Board of Directors , determined the legal status of Party organization in corporate governance, and meanwhile revised a series of management regulations according to the changes of supervision rule and corporate development needs. The Company held two shareholders’ meetings, eight regular conferences and meetings for board of directors and 18 meetings for special commissions under the board. A total of 46 critical corporate issues were discussed and reviewed; some of independent directors were assigned to conduct field researches and inspect on overseas business outlets in various aspects including financial management, internal risk control, marketing and sales, and flight operation guarantee, etc.; Tang Bing, Director and Vice General Manager of China Eastern, was appointed as the director of Air France-KLM Group.

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Organizational Structure of China Eastern

According to the supervision requirements for listed companies issued by the stock exchanges, the Company continuously improves the information disclosure system and mechanism. In 2017, the Company released 70 interim announcements and four regular reports through Shanghai Stock Exchange; 88 announcements, ten circulars and four regular reports through Hong Kong Exchanges and Clearing Limited; and 64 announcements and one annual report through New York Stock Exchange. With these efforts, the Company ensures timely, real, accurate and intact information disclosure.

The Company conducts open and transparent communication with investors in various ways such as face-to-face communication, telephone calls and meetings, telegraph, network and investor open day. In 2017, the Company organized multiple road shows at home and abroad and held face-to-face communication with about 77 investors from 48 organizations; and held telephone meetings with 242 Chinese and international analysts. In 2017, the Company received visit from 57 analysts and fund managers in 26 batches, and was invited to hold face-to-face communication with over 140 investors on investor communication meetings organized by investors.

Establishing and improving the law-based governance and compliance mechanism is the essential premise for the corporate sustainability. China Eastern has always complied with business ethics, continuously improved compliance governance, enhanced employees’ legal awareness, and cultivated a corporate culture of clean governance and compliant operation. To respond to the deepening internationalized development, China Eastern observed laws and regulations on anti-trust and anti-unfair competition in countries and regions where we operate according to international compliance; moreover, we participate in domestic and overseas market competition with independent, equal, standard and orderly operations to jointly maintain a good market order and competition environment with other enterprises of different ownership.

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In 2017, we steadily promoted the “1234 legal and compliance projects” to continuously establish and improve the compliance management system and the legal risk prevention system for internationalized operation; and enhanced work on compliance management in key areas such as anti-trust, anti-unfair competition, safe operation and environmental protection. In 2017, the contract fulfillment rate of the Company reached 100%, with no occurrence of law suits against trust and unfair competition.

According to the development rules of civil aviation and the operation characteristics of airlines, China Eastern integrates Party building into corporate governance, safety, service, operation and management, providing strong guarantee for the Company’s reform and development. The Company organizes thorough study and implementation of the Thought on Socialism with Chinese Characteristics for a New Era led by Chinese President Xi Jinping, and the essential spirits of the series of important speeches delivered by President Xi. The Company has put Party building in the first place among annual work priorities for three consecutive years and formulated systems such as the Rules for the Implementation of Party Building Work Responsibility System and the Rules for the Implementation of Reporting, Review and Assessment of Party Building Work . After the 19th CPC National Congress in 2017, China Eastern implements the requirements of “Six Focuses”, “Five Implementations” and “Five Full-Coverage Operations”.

The Company keeps on making it regular practice and an institutionalized requirement for all Party members to gain a good command of the Party Constitution, Party regulations, and related major policy addresses and to meet Party standards. From April 2016 to December 2017, the Company organized all management personnel to give approximately 600 lectures on Party theories and practices, over 3,600 learning symposiums, and about 8,800 learning and training activities in different forms. The selection and awarding of knowledge competitions and Party micro-courseware won attention and exerts much influence. Besides, the Company actively explores the mode of “Internet + Party building”. The China Eastern Party Building website and the official WeChat account of China Eastern Party Building won the first prize for national SOE management innovation projects. The “Three-Leader” team (Three-Leader refers to Captain, Chief Steward and Group Leader) building was continuously deepened; remarkable outcomes were made in the “Blue Sky Party Group” project, and the role of “demonstrative Party Branch” was manifested. Besides, Party building was enhanced in overseas subsidiaries and outlets to streamline the organizational structure and the mechanisms with more efforts.

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China Eastern promotes the clean Party’s working style and anti-corruption, and bears zero tolerance to address the practice of formalities for formalities’ sake, bureaucratism, hedonism, and extravagance. In 2017, the Company subdivided and standardized the decision-making content, operation procedure and requirements of the Standing Committee for Discipline Inspection Commission, and established the three-dimensional communication mechanism in which the Discipline Inspection Office of the Company communicates vertically with discipline inspection organizations of all subsidiaries, branches or business units and horizontally with discipline inspection personnel to continuously improve the capability of the Company’s discipline inspection team. The Company established the mechanism of seasonal reporting on discipline inspection work to the Party group and the mechanism of study on Party working style and anti-corruption, and timely listen to the instructions of the Party group.

In 2017, the Company promoted the full and strict governance over the Party, enhanced daily management and supervision of leaders and cadres, and kept clean governance archives for leaders and discipline inspection cadres. In 2017, the Company held 27,774 talks, among which 19,239 daily talks, 5,384 talks over honest work and 3,151 talks of reformatory education and early warning.

The Company conducted the discipline inspection campaign initiated by the central Party, took actions according to the feedback of the discipline inspection group of The State-owned Assets Supervision and Administration Commission of the State Council (SASAC), and fully implemented rectification measures. China Eastern organized discipline inspection tours in branches and subsidiaries and conducted field researches on their progress of implementing the central Party leadership’s eight-point decision on improving Party and government conduct. The headquarters and subsidiaries, branches and business units of China Eastern organized 1,396 warning activities, 912 inspection tours and 119 special treatment activities to deepen the improvement of clean governance, risk prevention and control through “Culture + System + Science and Technology”.

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The Company continuously promoted the comprehensive risk management, and focuses on four aspects including system building, risk evaluation, internal control assessment and capability building to further improve the Company’s management and control in key risk areas. As the comprehensive management department for internal risk control, the Auditing Department of the Company promotes different levels of subjects of liabilities in the Three Defensive Lines of internal risk control to fulfill due responsibilities.

In 2017, the Company further improved the top-down design and fulfilled the responsibilities of risk prevention and control as the subject of liabilities; we established the second-level risk management commission to set up the linkage mechanism and enhance capabilities of identification and management & control of major operation risks; we improved the risk evaluation system, focused on corporate strategic goals and current operation goals, and conducted risk evaluation in major and important corporate matters; by enhancing work on internal control assessment and internal auditing, we aimed to set up the linkage mechanism with risk management; by deepening the team building and training of the internal risk control team, we promoted the development of the internal risk control panel.

Work on Risk Management

The informatization work is a major carrier and an important support to promote the transformation of China Eastern from a traditional enterprise to an internet-based enterprise. The Company promoted work on “giving full play to the guiding role of IT to create a digitalized China Eastern” in full swing. Relying on a professional information team, the Company built a closed-loop service support system covering from IT planning, project management, system implementation to operation and maintenance support.

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In 2017, China Eastern launched the internet-based strategy consulting project and held the internet-based strategy seminar to further clarify the internet-based strategy positioning and implementation path. Moreover, we completed the internet-based strategy designing, expanded the consumption internet, the industry internet and the social networking internet, and planned eight internet-based application scenarios, taking an important step to build an internet-based China Eastern. We strive to realize the ecosystem data linkage and build an internationalized and internet-based information ecosystem.

In 2017, China Eastern Internal Mobile APP and Mobile HCC won the application innovation prize by China Computer Users Association; China Eastern was the first airline to use robots to provide services at Hongqiao VIP Check-in Counter, including providing aviation transport knowledge, checking boarding card and member points.

Note: Mobile HCC is a mobile APP closely connected to the HCC operation control system. The APP is mainly used to help frontline employees at the Ground Service Department to receive service task orders, record time of task beginning and completion, and synchronize the time to the HCC operation control system. The data are visually displayed in Gantt chart on the computer or screen terminal at the flight dispatching station to guarantee the full process of visible monitoring of ground service.

Some Informatization Measures

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2.2 Integrating CSR into the Organization

Social Responsibility Management Framework of China Eastern

We adhere to the concept of “caring for employees, putting customers first, satisfying shareholders, and earning the public’s trust”, continuously promote social responsibility management work and integrate the concept of social responsibility into our development vision of “Creating a world-class airline, building a happy China Eastern”. We have divide social responsibility work into different aspects and assign them to the organizational structure in order to ensure that responsible management departments fulfill their respective corporate social responsibilities in their daily operation and management, and have built and improved the social responsibility management and information disclosure system.

In 2017, we seized the opportunity of compiling our CSR report 2017 to conduct special training seminars on social responsibility fulfillment among CSR personnel from departments, subsidiaries and branches. The training content covers global CSR development trends, social responsibilities of aviation industry, analysis of CSR topics and information disclosure, etc. The attendees prioritized the material topics in the database of China Eastern, and participated in communication and discussion about CSR management progress and remarkable CSR practice in 2017.

2.3 Materiality Assessment

According to GRI Sustainability Reporting Standards , the Company has made analyses and modification of material topics in 2017 based on materiality disclosure in 2016, and major strategies and stakeholders’ expectations in 2017.

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Identification of Material Topics

Step 1: Review

Step 2: Identification

Step 3: Evaluation

Step 4: Validation

CSR Report

Stakeholder Engagement

Based on 29 major material topics disclosed in the Company’s CSR report in 2016, we fully considered the feedback of internal and external stakeholders during the reporting period to complement the list of major material topics, and highlighted and subdivided core topics, providing references for the analysis of material topics in 2017.

Furthermore, we made a deep analysis of macro policies and trends of global sustainable development in 2017, mapped the requirements and practices of sustainability in aviation industry, and sorted out and formulated the 44 material topics in the database according to the requirements of sustainability topic management and information disclosure stipulated in relevant international and domestic standards and guidelines, and based on corporate strategies and development focuses in 2017.

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According to the principles of materiality and stakeholder engagement, we prioritized the identified material topics and adopted group discussion, on-site interviews, telephone interviews and other ways to investigate 59 internal and external stakeholders and get to know their grading of topics in terms of materiality. We conducted a comprehensive prioritization of material topics in terms of influence on stakeholder assessments & decisions and significance of economic, environmental, and social impacts. Finally, we concluded the preliminary assessment results of material topics.

Based on the corporate strategy and business policy, we verified the preliminary results of the assessment of material topics, and listed top 19 material topics of great significance to both the Company and stakeholders through comprehensive analyses.

Material Topics of China Eastern in 2017

Note: The bigger the font is, the higher importance the topic is.

29

30

31

32

33

34

35

Note: Three-Leader refers to Captain, Chief Steward and Group Leader.

36

37

38

39

2.4 Stakeholder Engagement

Taking factors such as daily corporate operation and management, scope of topics and the impacts into account, we identify internal and external stakeholders that are of vital importance to the Company’s development and vice versa. We keep close communication with stakeholders, listen to their expectations and accept their supervision; according to stakeholders’ feedback, we improve our decisions and continuously improve CSR management.

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41

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3.1     Recognition and Honors

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3    Implementation: CSR Creating Comprehensive Values

China Eastern pursues the sustainable development, reviews and reflects on the core areas of traditional corporate management from the CSR perspective, such as aviation safety, passenger service and employee development, and continuously integrates environmental and social topics including addressing climate change, sustainable resource utilization, targeted poverty alleviation into the Company’s development. The process of establishing approaches to topic management is also that of maximizing the positive influence and minimizing the negative impact of China Eastern; it is a process of creating brand new values for China Eastern.

3.1    Safety

3.1.1    Aviation safety

Aviation safety is an organic component of national safety and the essential condition for airlines to achieve high quality development. Bad weather, mechanical malfunction, human error, aircraft default and other events of force majeure will possibly exert adverse impacts on aviation safety of airline. Regarding flight, ground and air defense safety as an important mission and the foremost responsibility to safeguard people’s life and property is the foundation for airlines to maintain stable operation and good reputation.

Management approach

The general principle of aviation safety of China Eastern is “coordinating development and safety, enhancing the sense of crisis, and thinking of danger in times of safety. In order to safeguard aviation safety, China Eastern coordinates external and internal safety, traditional and non-traditional safety, technical and non-technical safety, improves the safety system and enhances safety capability to achieve the Company’s overall goal of sustainable safety development.

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China Eastern has established the Aviation Safety and Environment Committee under the Board of Directors to administer affairs related to implementing national policies of aviation safety, clarify safety management responsibilities of main institutions, and study, deliberate, propose suggestions for and supervise the implementation of the Company’s aviation safety work plan and major issues.

Guided by the Safety Committee and the Safety Supervision Department, Safety Management System (SMS) of China Eastern is adopted to coordinate safety management responsibilities of main management institutions and operational units to work on SMS construction and operation, covering safety policy, safety risk management, closed-loop safety management and safety enhancement, etc. In 2017, the Company made detailed assessments of the actual SMS operation status of 14 operational units, searched for their highlights and deficiencies in SMS system construction and operation, and formulated the Safety Management System Efficiency Improvement Plan of China Eastern , contributing to continuous improvement in safety management system.

In 2017, China Eastern formulated relevant safety regulations such as the Implementation Plan for Promoting the Integrated Operation of Air Defense System , Guidance on Crew Resource Management (CRM) etc. , improved the contingency manual and procedure of flight safety and production guarantee, and formulated the Flight Safety Contingency Response Process and Checklist . According to the feedback collected during the implementation, the Company revised regulations such as the Aviation Security Plan and the Hazardous Chemicals Manual .

In 2017, China Eastern formulated the Safety Management Responsibility Checklist for Main Safety Management Cadres of China Eastern to clarify the main responsibilities of all levels of safety management cadres and give full play to their leading role. The Company revised the Regulations on Reward and Punishment for Aviation Safety and the Regulations on Safety Assessment Management to enhance positive motivation to improve the enthusiasm of operational units in safety management.

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China Eastern conducts regular internal safety audit of safety risk management & control and inspection of hidden safety hazards. In 2016, China Eastern passed through the biennial certification of the IATA Operational Safety Audit (IOSA). In 2017, China Eastern continuously conducted LOSA for flight routes, inspected 450 flights, and listed the issues that needed to be addressed as the focus of inspections, focusing on rectification of hidden hazards and problems.

In 2017, to guarantee aviation transport for the 19th CPC National Congress, main leaders of China Eastern organized management personnel to conduct safety inspection in 12 first-level units. They inspected aspects such as cadres’ performance, the construction of “Three Bases”, risk management & control and inspection of hidden hazards, contingency management, etc. A total of 212 problems were detected. Among them, 103 problems were rectified, 109 problems were being rectified within the given period. The rest eight units completed self-inspection work.

Aviation Safety Safeguard Measures for All Business Segments of China Eastern in 2017

In 2017, China Eastern analyzed the current situation, challenges and business strategy and development needs of the “Three-Leader” team, and completed the construction of the “Three-Leader” team capability building model, providing the foundation and standard management system for talent selection, cultivation and appraisal. In addition, the Company organized the pilot capability enhancement activity, inspected and made survey among 19 flight units, analyzed the cause behind the problem, and formulated the improvement plan, solving the problem of inadequate capability of pilots.

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Key Measures of China Eastern to Enhance Pilots’ Flight Safety Capability in 2017

Application of Major Safety Technology of China Eastern in 2017

China Eastern actively promotes safety culture development. Through setting up rational material and spiritual rewards, the Company motivated employees to take their initiative to report safety information. In addition, the Company held safety theme forums, opened WeChat accounts of safety culture to spread safety information and deeply kept safety concepts into people’s minds, playing the guiding and driving role of culture in work safety.

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China Eastern won the award of “Diamond Flight Safety Award” by CAAC

Zero flight accident rate reached for ten consecutive years

700%

137,384 hours

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16.5045 million hours

3.1.2    Occupational health and safety

Occupational health and safety involves employees’ life, safety and health damage caused by labor conditions. During aviation transport, the health condition of the pilots may affect flight safety. Thus, the occupational health and safety of crew is of vital importance to aviation transport enterprises. Meanwhile, the ground activities such as aircraft maintenance may also pose risks to occupational health and safety, and it is also an important aspect of aviation transport enterprises.

Management approch

China Eastern respects employees’ legal right of health and continuously enhances management of occupation health and safety. In 2017, according to Rules for the Approval of the Operational Eligibility of Large Public Air Transportation Carriers (CCAR-121-R5) , the Company formulated pilot fatigue risk management regulations; based on Law of the People’s Republic of China on the Prevention and Control of Occupational Diseases , China Eastern formulated the Medical Security Plan for Employees in Shanghai and unified the internal clinic model. According to employees’ feedback, the Company makes continuous improvement in management approach to safeguard employees’ rights of health.

Measures of China Eastern for Promoting Occupational Health and Safety in 2017

No flight hygiene and unsafe incident occurred

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78.43 %

over 2,500 person time

827 people

43 people

3.1.3    Passengers’ health and safety

The life, health and property safety of passengers is one of the essential expectations from passengers for aviation transport. Passengers’ health conditions may be affected by small, closed air space, long flight time and some other factors. Airlines should take actions to safeguard passengers’ health and safety.

Management approach

China Eastern embarks on passenger health and safety safeguard from hygiene & safety of airplane food and air first-aid, and keeps on improving service to reduce passengers’ health and safety risks during flight.

In case of emergencies, China Eastern always puts passengers’ interests in the first place. China Eastern formulated the Contingency Response Manual , established the treatment plan for passengers’ accidental injuries and diseases, and equipped AED first-aid facilities on every flight, forming the air-to-ground quick response mechanism. The Company also stipulated first-aid and contingency rescue procedure in the Flight Attendant Manual. During flight, in case of passenger safety emergencies, the flight crew will make a preliminary analysis of the passenger’s situation and take basic first-aid actions according to the contingency plan and work manual. When the aircraft weight fails to meet the landing requirement, the crew will implement alternative landing through oil drainage. In 2017, China Eastern completed the air-to-ground cloud video of landing work. The crew can contact with the ground ACC (external station support) through video for 24 hours a day, providing more support and solutions for cabin and flight safety emergencies.

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In order to ensure the quality and hygiene of airplane food to protect passengers’ health and safety, China Eastern strictly follows international and national standards, implements the full process of safety supervision over airplane offerings, and forms the stringent food supplier review and supervision system.

Safeguard Measures of China Eastern for Passengers’ Health and Safety in 2017

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Number of medical emergency rescue events 71

Alternative landing or returning plan to save passengers’ life

3 times

Food inspection

659 times for 76 food suppliers

3.2 Economy and Business

3.2.1 Internationalized development

With the deepening of the economic globalization, China will adhere to the opening-up policy and deepen reforms comprehensively to develop an open economy. Aviation transport is not only a mode of transportation, but also one of the important channels for the rapid integration of regions and countries into global economy. China Eastern regards internationalized development as one of our important development strategies to help develop a new pattern of all-around opening-up. Meanwhile, internationalized development has also become an important way for the Company to seek our sustainable development, achieve win-win cooperation by combining more resources, and respond to the increasing market demand.

Management approach

The Company actively participates in the development of the Belt and Road and has confirmed the “Three-Step” internationalization path of “gradually promoting the internationalization of the network, the internationalization in relevant aspects, and the internationalization of investment and cooperation” to conduct in-depth international cooperation and accelerate the pace of internationalization. The Company continues to promote the “Pacific Plan” and the “Europe Profitability Plan”, and arranges international routes in Japanese and South Korean market, North American market, European market, Australian market and Southeast Asian market to realize significant enhancement of operation capacity and international influence.

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By the end of 2017, the Company has operated a total of 9 flight destinations in Europe, including Paris, Frankfurt, London, Rome, Amsterdam, Madrid, Prague, Moscow, and St. Petersburg, and there are 67 flights to Europe each week.

Management internationalization

• Building a team to promote the internationalization of various professional fields

• Establishing a management and communication model for the promotion of internationalization

• Implementing a special training management model for global project to enhance management abilities in business development, talent development, and operation guarantee

Talent internationalization

• Optimizing organization model of overseas operation

• Improving the internal international talent reserve mechanism

• Introducing high-level overseas talents

• Establishing a sound career development system for overseas talents

Cooperation internationalization

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•     Realizing strategic cooperation with Delta Air Lines to invest in Air France-KLM Group

•     Delegating personnel to hold the position of vice president of China Affairs in SkyTeam Airline Alliance for in-depth participation in the affairs within the Alliance and start staff discount ticket projects within the Alliance

Measures for Internationalized Development in 2017

8 flight destinations covered at home and abroad

4 %

3.2.2 Flight Punctuality

Flight punctuality is an important embodiment of civil aviation services and is among the highest concerns of customers when accessing to aviation transport service. In addition to factors such as weather, air traffic control, and airport management, the airlines’ operation and management level also affects flight punctuality to some extent. Therefore, flight punctuality management is the focus of airlines’ work to improve management and customer service.

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Management approach

China Eastern has always attached importance to the flight punctuality management by controlling the flight unpunctuality risks and factors according to relevant provisions of CAAC. In 2017, the Company made amendments to relevant rules and regulations such as General Conditions of Passengers and Baggage Carriage of China Eastern and the Contingency Plan for Unpunctual Flights , and improved responsibilities for service security and management and control modes. In order to promote the implementation of such rules and regulations, the Company solicited opinions on flight punctuality management work from all units and branches & subsidiaries, answered and discussed questions concerning standards refinement, operation optimization, and flight delay judgments, and conducted a random inspection of the implementation of such rules and regulations as well as proposed suggestions on improvement.

Marketing

•     Informing passengers of unpunctual flight in time

Ground Service

•     Promoting electronic luggage retrieve

•     Establishing a quick transit system

•     Developing a “command channel of ground service”

Cabin Service

•     Adjusting departure times and routes at peak times

•     Further implementing the “Close the hatch five minutes early” policy

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Fight

•     Realizing air-to-ground 24 hours contact to support solutions for cabin and flight safety emergencies

Operation

•     Promoting 30 node monitoring of operating quality

•     Further refining flight schedules

Aircraft maintenance

Informationization

•     platform

•     Operating qualification compliance verification platform

•     Operating electronic deployment platform

Measures for Flight Punctuality Management in Various Business Processes

☐    In June 2017, the flight punctuality quality monitoring platform was launched. by December 31, 633 flights have been adjusted in Shanghai airport terminals

3.3 flight delays per day

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71.99 %

0.32 %

higher than the industry punctuality rate

235,600 flights

8.121 million

3.2.3 Product and service innovation

Internet technology plays an increasingly important role in changing people’s daily life, and business travel and travel methods as well. In this respect, in order to respond to the diversified and individualized demands and expectations of customers, and enhance customer recognition and satisfaction, airlines need to provide passengers and other consumers with faster, more comfortable, and more intelligent transportation services by making continuous innovations on products and services through information technology.

Management approach

China Eastern set up Transformation Office to promote the business to keep pace with the market and the trend of the times in 2013. At the end of 2017, the Company upgraded the Transformation Office as the Leading Group Office of Comprehensively Deepening Reform to further assist in the promotion of supply-side reform. The Company also systematically integrated the functions of channels, markets, products, and services by establishing Sales Committee, Customer Committee, and Business Committee to improve services for passenger. As one of China’s first pilot enterprises conducting industrialization and informatization, we insist on product innovation by virtue of the ever-changing information technological innovation to improve service abilities and efficiency. Focusing on personalized customer experience, we promoted the intellectualization of the business operation model and the openness and interconnection of ecological relationships.

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Since the introduction of the Internet-based development strategy, the Company has always focused on technological innovation, based on which more intelligent and efficient travel experiences are provided for customers. The Company has also improved full-process self-service, developed more interactive channels , and improved customer engagement . The Company has also provided a series of convenience services on official website, including seat reservation, service for special passengers, flight information printing, self-service refund and rescheduling of unpunctual flight , prepayment for overweight luggage, application for free Wi-Fi onboard, and rescheduling of baby ticket; provided APP online intelligent customer service and manual service. Moreover, besides on official website, mobile phone App, M website, overseas websites, SMS check-in, WeChat official account check-in, and CUSS check-in, China Eastern also launched self-check-in service on the applet of WeChat to improve convenience for passengers’ check-in.

Self-service flight information acquisition

Self-service refund and rescheduling

Self-check-in

Self-service luggage check-in

Self-serve boarding

Self-service ID verification

Self-help transit

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Self-service printing of flight delay/cancellation records

Self-service inquiry of luggage and leftovers

•    Optimize rules for self-service refund and rescheduling of unpunctual flight

•    In 2017, 75,576 customers conducted self-service refund and rescheduling, up by 319 %

•    China Eastern self-check-in equipment is available in 8 languages including Chinese, English, Japanese, Korean, German, French, Italian and Russian, as well as Traditional Chinese.

•    Advance the intelligent guidance system of airport terminal by realizing transfer navigation in Pudong Airport and T2 boarding gate navigation by high-end robot attendant in Shanghai Hongqiao International Airport

•    Remind document checking of international flights for passengers

•    Complete identification and inspection functions of Permanent Residence Permits for foreigners and Taiwan Travel Permit for Mainland residents

•    Complete the “Direct Transfer of International Flight to International Flight within 24 Hours without Inspection” project, which takes only 5 steps and approximately 20 seconds through self-check-in

•    Receive 639,000 person-times in 2017

•    Update self-service mode of printing flight delay information by increasing five channels including China Eastern Airlines’ official website, overseas website, mobile phone APP, M website, and passenger service center.

•    Print 375,910 flight delay information in 2017

•    Add new item fuzzy search function and picture matching function

Self-service Functions Provided by China Eastern

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Self-check-in rate of domestic flight

71.19 %

•

Self-check-in coverage rate of international flight

over 90 %

In 2017, we further upgraded the Fly-Fi Service platform from the original individual WeChat security model to the corporate security model by conducting follow-up work of software development, testing, training, and on-line operations and achieving functions of automatic login, self-service inquiry and automatic reply.

As the largest fleet in China,

Fly-Fi fleet has a total of 74 airplanes

Covering all international long-distance routes and

166 domestic key business routes

Totally serving about

44,000 flights

Receiving

545,000 person time

The quality of luggage transport is always the core for China Eastern to improve customer services. In 2017, we put into operation the luggage control hall of the global luggage operation control center to develop the “intelligent luggage service” mode and further promote the process monitoring of luggage transport quality;

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Meanwhile, we also established a full-process luggage control mode and launched a real-time tracking system for check-in luggage by adopting Internet information technology to improve luggage transport and management abilities.

Full-process luggage control mode

Luggage sorting, loading and unloading

•    Strengthen information checking to control luggage misplacement, wrong transport, missed loading and missed transport

•    Electronic luggage retrieve

•    Realize full covered scan of luggage sorting and loading for all outbound flights at airports in Hongqiao, Pudong, Kunming, Xi’an, Lanzhou, Taiyuan, Nanjing, and Hefei

Luggage handover

•     Electronic handover of luggage : Implement operation of luggage strip change in the luggage sorting area by connecting Bluetooth printer with a PDA on hand

Abnormal Luggage Searching

•     Online virtual warehouse building : Conduct image upload and centralized management of unclaimed luggage

•     Tracking and positioning of abnormal luggage without blind spots : Get access to the follow-up handling of abnormal luggage timely after arrival to reduce information transfer; withdrew and search abnormal luggage through luggage location positioning.

Claim settlement of abnormal luggage

•     Improvement of claim settlement management of abnormal luggage : Complete the connection of abnormal luggage management system and financial sharing platform

•     Centralized claim settlement services : Promote centralized settlement of complex claims and achieve integration of follow-up disposal

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China Eastern Promotes the Full-process Luggage Control Mode by Applying Information Technology

Error Rate of Abnormal Luggage Transport (per 1,000 persons)

3. 2.4 Improvement of Passenger Experience

As the receiver of aviation transport service, passengers are one of the most important external stakeholders of airlines. CAAC proposes to adhere to the “three bottom lines” of flight safety, integrity, and sincere service, among which sincere service is the essential requirement for civil aviation as a service industry, and the starting point and ultimate goal of flight safety and integrity.

Management approach

China Eastern adheres to people-first development concept by providing sincere service and creating new customer experience. Through cooperation with airlines like Delta Air Lines and Air France-KLM Group and continuous improvement of management and operation methods, we have improved our service standards and business processes, strengthened training for first-line employees, and improved service quality, striving to create better travel experiences for passengers and other customers. On the basis of original Marketing Committee, Customer Service Center and Service Management Department, we established Customer Committee to enhance our management abilities of customer experience service in 2017.

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Formulating service standards

Developing service system

Product optimization

Service upgrade

Service quality monitoring

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Service improvement

China Eastern Improves the Full-process Service Quality

The Company continues to improve the standards on VIP lounge construction, formulates and publishes relevant rules and regulations such as Setting Standards for China Eastern Airlines on Construction of VIP Lounge and Supporting System to continuously improve the service level for high-end customers. In 2017, the Company launched the new self-operated VIP lounge and united VIP lounge at Beijing Capital International Airport, the VIP lounge at the T1 terminal of Hongqiao Airport and the high-end check-in area on F Island, and built the first VIP Kids Club in the flagship VIP lounge at Pudong Airport. We also formulated and implemented management regulations for the use of VIP cars, shuttles, and air conditioners, and managed the temperature in the cabin through routine inspections and spot checks to improve passengers’ comfort.

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In 2017, we carried out an optimization of airplane offerings and foods, and established four sub-projects, namely, in-depth optimization of routes, multi-dimensional adjustment and optimization of airplane meals, all-round improvement of airplane offerings, and increase of varieties of airplane beverages, to further optimize the meal standards on long-distance flights. We proposed innovative ideas for meals by providing local specialties and serving customers immediately to improve the quality of catering. At the same time, we shortened the dishes update interval and implemented the all-cabin meal replacement model on the business routes of Shanghai-Beijing, Shanghai-Shaanxi, and Shanghai-Guangzhou from every 15 days to every 10 days. During the rotation period, 4 menus were replaced by 6 menus.

Optimizing Children’s Meals and Creating Foods that Appeal to Children

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“Mum taste” Dishes Offered in Economy Class Makes Two Cabin Passengers Slobber, and the Most Popular One is the Double-flavored Rice with Cured Meats.

China Eastern accelerates customer response in an all-round manner and actively creates a smooth and comfortable experience for customers. We optimize the customer complaints management and control system, receive, distribute, investigate, handle, answer and archive customer complaints through the complaints system, and supervise the complaints analysis and exchange mechanism of CAAC to rapidly rectify the units with customer complaints and conduct regular evaluation on the units according to the regulations on rewards and punishment as well as complaint assessment indicators. We also hold regular seminars on customer complaint analysis and service improvement and carry out regular assessments in accordance with relevant regulations.

For the complaints on the problems, such as airplane radio and customers’ orders when getting off the airplane, we launched a variety of live-audio iPad radio broadcasts and cooperated with the Air Security Management Department to implement the order maintenance process by giving priority to two-cabin customers when getting off the plane.

In 2017, a total of 27,415,191 messages involving 790,841 flights were sent to customers to get their feedback, and 227,979 replies were collected.

3.2.5 Special Passenger Service

Special passenger service is of significance for us to improve the accessibility of aviation services. The airlines should provide services for special passengers according to their needs and provide equal and safe travel for them.

Management approach

Based on the standardized process and practical experience, we sorted out the regulations on serving special passengers from the Cabin Service Manual as the guidance for cabin crew to provide services for special passengers. We equipped all aircrafts with aisle wheelchairs and renovated the toilet doors of most aircrafts to provide convenience for special passengers.

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In 2017, we further standardized the working procedures for serving disabled passengers and improved service methods and skills. Specifically, we sorted out and revised the Human Organ Donation Process , implemented regulations prescribed in the Notice on Further Confirming Pregnancy Certificates for Pregnant Travelers , and refined special service standards for small animal transport and formulated and issued the Notice on Further Clarifying the Transport Standards for Small Animals to provide guidance on solving the unsafe transport incidents of small animals.

Special passengers including stretcher passengers, passengers who need oxygen blowpipes, wheelchair passengers, the disabled, passengers with pets, service dogs/guide dogs, the blind/deaf, pregnant/ parturient women, the sick, mobility impaired and children who travel as unaccompanied minors may apply for flight service through the hotline 95530, China Eastern official website, M website and App

Providing comprehensive escort service such as airport transfer, guidance, boarding, and assistance in filling documents for young (12-16 years old) and middle-aged and elderly passengers

Establishing priority service counter for revolutionary disabled soldiers and disabled on business policemen to facilitate their purchase of discounted tickets

Providing more than 20 special meals for passengers with special needs such as baby meals, children meals, vegetarian meals, meals for diabetic, Indian meals, Muslim meals, etc.

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Convenient Services Provided by China Eastern

received online in 2017

3.2.6 Customer Privacy Protection

To ensure the transport safety and smooth operation of passenger transportation services, airlines will require passengers to provide personal privacy information, thus they and their agents have obtained a large amount of personal privacy information. It is then a must for the airlines and their agents to protect customer privacy and information security.

Management approach

We formulated the Regulations on Frequent Flyer Information Utilization and Operational Risks Management to ensure the safety and standardization of the use of data and related information, and control the risk of using membership data and the safety risks of frequent flyers’ membership rewards points and membership information. We also established strict requirements for agents such as uploading passenger information through safe channels, and forbid the illegal use of passengers’ privacy information. Furthermore, we continued to optimize our information security management system by mapping the standards of the ISO/IEC 27001:2013 Information technology—Security techniques—Information security management systems—Requirements, gaining certificate from CNAS and ANAB.

3.2.7 Sustainable Value Chain

The interests of an enterprise are closely related with its value chain partners. On the one hand, the enterprise relies on upstream partners, such as suppliers to supply materials, technologies, or services, and provides products and services for its customers on such basis. The suppliers’ product quality and behavioral practices then exert impact on the enterprise’s daily operations. On the other hand, through procurement decisions and actions, the enterprise can also guide the value chain partners to integrate social responsibility principles and concepts into their management process, thus helping more organizations and related parties to obtain more sustainable business values. As a state-owned enterprise, China Eastern enjoys rich management experience and industry resources, and is liable to guide its suppliers, agents and partners to practice sustainable development model.

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Management approach

We incorporate the specific requirements of social responsibility into the entire assessment system and supplier management system, formulate and continuously modify relevant provisions such as the Procurement Regulation of China Eastern Airlines Corporation Limited and Detailed Rule for Procurement of China Eastern Airlines Corporation Limited , and improve the strict access and assessment mechanism. New suppliers are required to sign the Suppliers’ Letter of Commitment on Social Responsibility and Suppliers’ Letter of Commitment on Integrity to notify them of their obligations in respect of environmental protection, public welfare and labor protection.

In 2017, we further integrated the specific requirements of social responsibility into the evaluation system of suppliers’ performance, optimized the assessment template by giving bonus marks to the suppliers who have been actively fulfilling social responsibility during the appraisal, and strengthened the cooperation with strategic suppliers. Meanwhile, we supported local procurement, and provided small-sized suppliers with cooperation opportunities and managerial experience to help local suppliers develop orderly and healthily.

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Management approach

China Eastern formulates and executes the Cooperation Agreement of China Eastern with B2B Websites on Electronic Ticket Sales and Sales Agency Agreement of Domestic Passenger Transportation that stipulate the agent’s responsibilities and obligations and breach of contract. The Company prohibits agents from bundling of its products, exercises strict control of products provided by agents and the implementation of its pricing policies, and sets up a special team to deal with breach of contract.

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3.2.8 Industrial Development Promotion

The healthy and sustainable development of the industry is at the stake of all civil aviation enterprises that can not only stimulate innovation and efficiency of enterprises in the industry, but also can promote economic growth and improve people’s living standards in the long run. Shanghai is one of the cities with the highest level of internationalization and the most developed trade and business. It is also a global center for technological innovation. China Eastern, as one of the three major state-owned airlines, has the responsibility to play its role in promoting the overall development of the industry by relying on the strength of economic development in Shanghai and the scientific and technological innovation resources in the Yangtze River Delta.

Management approach

The Company conducts good cooperation with its partners to promote rational allocation of resources and increase the value of the entire industry chain. Meanwhile, China Eastern has joined many industrial associations to devote itself in formulating industrial standards and is dedicated to developing a platform for talents communication and cultivating skilled talents for the civil aviation industry.

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Airlines cooperation

•    Deepening cooperation with Delta Air Lines

•    Promoting the joint project with Air France-KLM and Qantas

SkyTeam Airline Alliance affairs involvement

•    Assuming the post of vice president of China Affairs, SkyTeam Airline Alliance

•    Continuing to expand the code sharing cooperation within and outside the SkyTeam Alliance, comprehensively managing code sharing routes, prices, cabin seats and open-up condition, and promoting complete cabin matching with partners

Industrial cooperation

•    Ministry of Industry and Information Technology, Civil Aviation Authority and other industry competent authorities: jointly discussing the development of WI-FI use and installation standards on board

•    Cooperating with CAAC East China Regional Administration: discussing on the prescription of old aircraft management system

•    Cooperating with COMAC : holding aircraft maintenance assessment meeting regularly to jointly discuss on the stipulation of provisions for maintenance; assisting in aircraft selection work to promote the improvement of aircraft performance; training outstanding talents; and organizing youth middle management to participate in the project of post skills training

• Conducting university-enterprise cooperation: Sign an internship agreement with Qingdao Foreign Affairs Service Vocational School to provide internship opportunities for professional students

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3.3 Environment and Society

3.3.1    Combating Climate Change

During the air transportation, greenhouse gas emissions caused by the use of aviation fuel impacts the climate. Nonetheless, the global warming and extreme weather could lead to flight delays and difficulties of take-off which will significantly affect the normal aviation activities. In this respect, to take measures to improve fuel efficiency and reduce carbon emissions is the main way for airlines to mitigate climate change.

Management approach

We attach great importance to environmental protection, energy conservation and emission reduction, and regard them as important measures to accelerate our transformation and development and realize “beautiful China and Happy China Eastern”. We set the Aviation Safety and Environment Committee under the Board of Directors to carry out regular researches and audit, propose suggestions, and conduct supervision over major environmental issues related to aviation-related carbon emission at home and abroad through regular meetings. We organized the Energy Saving and Emission Reduction Leading Group with the general manager as the head, and established a leading group office. We established the three-tiered management network system under the Planning and Development Department with management personnel from functional departments, management sectors of all secondary units, and management personnel at different positions, through which we constantly carry out environmental protection work with a focus on energy saving and emission reduction.

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We formulated a comprehensive energy management plan, improved Regulations on Energy Saving and Emission Reduction , and delivered the requirements and measures among all departments and subsidiaries based on the three-tiered management network system. In 2017, we set an indicator of per ton of fuel consumption per kilometer for annual energy saving and emission reduction assessment, and refined and decomposed this indicator for specific tasks. In addition, as the first large airline participating in carbon trading in China, China Eastern formulated and improved the Regulations on Carbon Emission Management to promote the completion of carbon trading. In 2016, the Company was honored as Outstanding Enterprise for Energy Conservation and Emission Reduction in Shanghai transport industry during the 12th Five-Year Plan Period.

Combating climate change

Reducing carbon emissions

Fleet optimization: Introducing energy-saving and environmental friendly fleet and eliminating old aircrafts

Technology optimization: Optimizing aircraft performance and conducting energy-saving technological transformation

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Operation optimization: Conducting routes optimization and fuel cost analysis, etc.

New energy adoption: Purchasing new energy vehicles

Conducting carbon trading

Finishing the settlement for our carbon emissions in the EU in 2016

It is expected to complete the 2017 Shanghai carbon emission quota task by 2018.

Low-carbon and energy-saving week

Organizing publicity activities themed “Energy Saving, Green and Sharing” with positive response of all branches

Major Measures for Addressing Climate Change

Fleet optimization

•     Fleet structure optimization

✓ Developing a simplest and youngest fleet with an average age of 5.5 years

✓ Launching and promoting the leaseback projects of 28 old aircrafts, introducing 6 737MAX8 aircrafts, and preparing to introduce the latest aircrafts such as B787, A350, B737MAX and A320Neo

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Technology optimization

•    Installing winglet

Modifying the wing of aircraft to reduce flight resistance (induced resistance) and the thrust required during flight, and then realize reduction of fuel consumption, carbon emissions, and landing noise

✓    From 2016 to 2017, a total of 133 winglets were installed, reducing 120,000 tons of carbon emissions

•     Engines modification

rformance of the engine to improve its efficiency and reduce fuel consumption rate and emissions

✓    From 2016 to 2017, a total of 15 EPs and 4 SelectOnes were modified, reducing 13,000 tons of CO ₂ emissions; 174 SelectTwo were modified, reducing 60,000 tons of CO ₂ emissions

•     Smart cleaning equipment

Completing the research and development of EngineCare to effectively improve engine performance and reduce fuel consumption and carbon emissions

✓    Compared with traditional washing equipment, the fuel consumption rate of CFM56-5B and CFM56-7B is respectively increased by 47% and by 45%

Operation optimization

•     Routes optimization

✓    Completing 32,571 flights in total, which shortens the flight distance by 1.755 million kilometers, saves 2,209.31 hours of flight, reduces fuel consumption of 6,699.98 tons, and reduces carbon emissions of 21,104.94 tons

✓     Cost control of direct operation

✓     Alternate landing Management

✓    Landing on alternate airports at near in sunny days, which reduces fuel consumption resulting from fuel overloading. A total of approximately 1,000 tons of fuel was saved throughout the year

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•     Aircraft performance monitoring

✓    Accurately monitoring and analyzing the differences in fuel consumption of different types of aircraft through APM (Aircraft Performance Monitoring), which reduces the fuel consumption in the operation

•     Virtual aircrafts application

✓    Deploying 4,192 virtual aircrafts with more than 140 physical hosts, which saves electricity of about 7.34 GWh per year and reduces carbon emissions of 5,935 tons approximately

Major Measures for Reducing Carbon Emissions

3.3.2    Pollution Prevention

Compared with other manufactures, airlines tend to have less pollutant discharge. Exhaust gas and waste water during flight and ground activities as well as hazardous waste discharge caused by aircraft maintenance have impacted the environment. Therefore, airlines should actively identify, prevent and manage pollutants generated during the operation process to promote environmental compliance and perform responsibilities and obligations of environmental protection.

Management approach

For development, China Eastern always adheres to the national policy of environmental protection and the principle of prevention first by combining resource protection and pollutants control together, making overall plans. We conduct special management, implement the responsibility system of pollution prevention and control for the pollutants source departments, and dispose and control sewage and waste residue, etc. with technology upgrading.

We formulate the Regulations on Environmental Protection in conformity with the Atmospheric Pollution Prevention and Control Law of the People’s Republic of China . Accordingly, we strictly control the emission of toxic and harmful exhaust gas and dust. Any such emissions (if necessary) shall not be approved unless such gas and dust are purified and within the prescribed amounts. Moreover, in accordance with the Water Pollution Prevention and Control Law of the People’s Republic of China , we strengthen the treatment of sewage, reduce the amount of sewage, and continue to carry out comprehensive treatment of closed-circuit recycling of domestic wastewater and production wastewater. In 2017, Eastern Technology formulated the Provisions for Hazardous Waste Management to standardize and harmlessly dispose the hazardous waste caused by the maintenance. In 2017, no violation of environmental laws and regulations happened.

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Sewage

Dangerous Chemicals

Hazardous waste

Classifying the hazard wastes, recording the amount generated each year, submitting it to the environmental protection authorities of Changning and Pudong for approval, and completing the treatment as soon as possible

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Exhaust gas

Hazardous Waste

Setting up a special environmental assessment group to carry out environmental assessment on solid waste caused by maintenance in Shanghai Classifying the hazard wastes, recording the amount generated each year, submitting it to the environmental protection authorities of Changning and Pudong for approval, and completing the treatment as soon as possible

Measures for Pollution Prevention

Classification of hazardous waste

Management practice

Hazardous waste reduction

Ground operation

Office waste

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Waste drugs and medicines

Hazardous waste from relocation

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Hazardous waste caused by maintenance

Management Method of Hazardous Waste

Sewage discharged

4,242 tons

488 tons

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266 electronic devices

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3.3.3    Sustainable Utilization of Resources

Increasing the sustainable utilization rate of resource and materials such as energy, water, and airplane offerings, and reducing the consumption of non-renewable resources are effective ways for airlines to improve environmental performance and coordinate short-term and long-term demands.

Management approach

China Eastern adheres to green development and the concept of saving-oriented resource utilization and attaches great importance to environmental protection, energy conservation and emission reduction. We formulated the Regulations on Environmental Protection Management and the Regulations on Energy Management to promote the sustainable utilization of resources and improve energy efficiency.

Energy Management

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Water Resource Management

Launching a new project for cleaning wide-body aircraft, saving 95% of water consumption

Beijing Branch conducted a Rainwater Collection Project in maintenance area

Material Usage

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Measures for Sustainable Utilization of Resources

Classification of non-hazardous waste

Management approach

Cabin operation

Food waste

Collecting and handing over waste to the catering company for burial or incineration

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Ground operation

Management method of Non-hazardous Waste

Refine management of meal distribution offered on board

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Measures for environmental protection in cabins

Measures for Sustainable Utilization of Airplane Offerings

Reusable Bags for Storing Slippers

3.3.4 Work Conditions and Social Safeguard

Employees are the builders and contributors of corporate development and harmonious labor relations are crucial to promoting social stability and the healthy and rapid development of enterprises. The specific production mode of aviation transport determines that the working conditions of flight crew are different from that in other industries. Therefore, providing employees with good working conditions and benefits is not only the basic requirement for protecting employees’ rights and interests, but also the necessity for stimulating the vitality of employees.

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Management approach

The Company strictly complies with the Labor Law of the People’s Republic of China and strictly forbids child and forced labor of any form. The average salary is higher than the local minimum wage in all regions. In 2017, we formulated and released regulations concerning the remuneration and benefits for flight personnel and flight safety management personnel. We guaranteed employees’ rights to enjoy the legal leave, maternity leave, and parental leave in conformity with relevant rules and regulations.

We formulated the Plan for Continuous Implementation of A Happy China Eastern to provide care and benefits for employees from five aspects: welfare, salary system, psychological care, care for employees with financial difficulties, and special care. In 2017, we continued to promote various service measures, extend service time, expand service content, and increase service range and service experience. At the same time, we focused on care for employee from single service offering to management optimization. In 2017, our leaders visited 757 basic units, and nearly 136,000 employees and invested 3.46 million yuan for employees with financial difficulties.

Through the workers’ representative congress, we guide employees to participate in democratic management, enhancing the cohesiveness of the company and employees’ sense of well-being and happiness. In 2017, the proportion of employees as members of labor union reached 97.36% (excluding overseas employees and laborers).

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Caring for Employees

Staff Basketball Competition in 2017

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3.3.5    Diversification and Equal Opportunity

It is of importance for enterprises to protect employees’ rights of equal and non-discriminatory employment as it has extremely important social significance for promoting social fairness and justice. In this respect, recruiting international talents and creating a diversified workforce are not only of significance for our international development, but also have a far-reaching impact on our expansion of overseas markets and promotion of the Belt and Road initiative and globalization.

Management approach

We advocate equal employment, and formulate and implement relevant regulations on salary system, working conditions, employee training and development, and the establishment and dissolution of labor relations based on job requirements. We advocate a diversified cultural atmosphere, respect individual differences, provide fair development and promotion opportunities for employees with different genders, ages, ethnicities, religions, and nationalities, and strive to enhance the inclusiveness of workplace.

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Age Distribution of Employees

Above 51 years old of age

41-50 years of age

31-40 years of age

Below 30 years of age

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Proportion of Female Executives from 2015 to 2017

3.3.6    Employee Training and Development

Continuously improving the employee training system is conducive to developing a fair, equitable and respected working environment and atmosphere for employees, promoting the integrated development of employees, and enhancing their sense of belonging and achievements. Employee training and development so as to talent attract and retain are of vital significance for enhancing the competitiveness of enterprises . It is also the key to keeping sustainable and healthy corporate development to systematically train different levels of high-quality and professional talents, especially when the whole aviation industry faces comprehensive development, and China Eastern is also under transformation and rapid business development.

Management approach

With the aim of “achieving common development with employees”, China Eastern provides employees with multi-level and comprehensive training and builds a multi-channel career development path for employees. We established a corporate university training system and operation management system to manage employee trainings. In 2017, we drafted the “ Swallow Program” Follow-up Training Mechanism for Backup Talents after Taking Office (Draft) and initially formed a tracking evaluation feedback system based on the establishment of talent development files, exchange and interaction mechanism, evaluation feedback mechanism, and results utilization mechanism. We also developed guidelines for assessing employees’ performance and career development and improved the assessment mechanisms. Moreover, all units, departments and branches have carried out a series of training and skills contest based on their business needs respectively. As of October 31, 2017, the training program has completed 93.31%, and the post-training assessment rate was 97.73% (part of the employees participating in the training were from subsidiaries and were not included for analysis).

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Improving employee training system

Continuing the teaching team building

Optimizing the curriculum system

Boosting the development of talent assessment

Efficiently managing educational resources

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Strengthening reserve talents training

Cultivating backup talents: Improving the “Swallow, Wing, Flying and Eagle” backup talents training system

Cultivating highly skilled talents: Conducting professional ability assessment, arranging evaluators and team of supervisors, and developing highly skilled talents base

Cultivating management talents: Holding Management Forum, promoting Sailing Program for newly promoted managerial staff, carrying out Spark Program, and launching training programs and management open class projects for middle-level and high-level executives

Improving supporting facilities

Building an R&D center and a smart park

Completing the construction of China Eastern Library and putting it into operation

Launching the online learning App officially

Enhancing employees’ professional skills

Ground Service Department: Enhancing the inadequate safety capability of employees, and increasing channels for diversified training by developing management requirements, business operation standards or processes into corresponding online micro classes

Cabin Service Department: Carrying out various types of service skills training for flight attendants in different levels, and organizing on-the-job trainings for all flight crew; establishing an independent training management platform to achieve visualization of performance assessment data

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Measures for Employee Training and Development

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Number of Trainings for Employees in 2017

Trainings

Number of participants (Person-time)

Training on management

Professional training on crew, operation, ground service, etc.

Other trainings

3.3.7     Targeted Poverty Alleviation

The Sustainable Development Goals (SDGs) proposed to end all forms of poverty. Targeted poverty alleviation is an important way for China to achieve this goal. Since the 18th CPC National Congress, the Party Central Committee has attached great importance to poverty alleviation, among which targeted poverty alleviation is a major strategic task during the period of the 13th Five-Year Plan. Central SOEs, as an important social force for poverty alleviation, are keen on innovation in poverty alleviation practices with the purpose to achieve the goal of poverty alleviation. In this sense, it is an important task for central SOEs to implement the national poverty alleviation strategy and fulfill the political and social responsibilities.

Management approach

In accordance with the overall requirements of the State Council Leading Group Office of Poverty Alleviation and Development and the SASAC on poverty alleviation work, the Company established a poverty alleviation work system, and formulated and implemented the Administrative Measures for Poverty Alleviation and Retired Cadres and Notice on Strengthening Targeted Poverty Alleviation and Development Work and other systems. In 2017, we issued the Circular on Deepening the Supervision and Enforcement of Poverty Alleviation , conducted research on the implementation of the poverty alleviation policy, assisted project approval and implementation, and conducted special supervision and inspection in the field of poverty alleviation.

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We always adhere to “One Aim”, fully coordinate “Three-Level Managements”, and give full play to “Three Forces” to effectively implement “Six Projects”, promote the self-sufficient effects of targeted poverty alleviation, thus furthering prompting social development in poverty-stricken areas and helping improve the lives of local people there.

Management Achievements

We focused on targeted poverty alleviation in two counties: Shuangjiang county and Cangyuan County in Yunnan province. After our 15 consecutive years of poverty alleviation there, the annual per-capita income of Shuangjiang and Cangyuan counties rose from nearly 200 yuan to more than 8,000 yuan. In 2017, we invested direct funds of 11.69 million yuan and 1.601 million yuan worth of goods and materials for poverty alleviation there. We implemented nine poverty alleviation projects and got 2,427 local registered poor residents out of poverty; we also helped introduce118.692 million yuan worth of various types of funds as well as 7 projects (including projects with full, partial funds and introduced projects), benefiting 1,851 registered poor families.

One Aim

Three-Level Managements

Three Forces

Six Projects

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Guided by the spirit of the Central Government and in accordance with the overall requirements of the State Council Leading Group Office of Poverty Alleviation and Development and the SASAC, China Eastern insisted on targeted poverty alleviation and actively fulfilled the political responsibilities and social responsibilities of the central SOEs to make contributions to realizing the goal of resolutely winning the battle against poverty and building a moderately prosperous society on time

Identifying Cangyuan County and Shuangjiang County as targeted poverty alleviation counties

Seven branches including Northwest Branch, Yunnan Branch, Jiangsu Branch, Anhui Branch, Jiangxi Branch, Shanxi Branch and Gansu Branch conducted targeted poverty alleviation in 10 poverty-stricken areas such as Shangri-La and Tianshui respectively

All units and employees volunteered to carry out charitable activities

Main force: China Eastern

Minor forces: our employees

Supplementary force: social resources outside the Company

Poverty alleviation by developing competitive industries

Dilapidated house renovation

Education support

Media and promotion

Helping the disabled

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Aviation transport

Targeted Poverty Alleviation System of China Eastern

The chairman Liu Shaoyong went to Shuangjiang and Cangyuan county in Yunnan province to carry out targeted poverty alleviation and launched a new round of poverty alleviation projects

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3.3.8     Community Engagement

The development of the enterprise is inseparable from the support of the local community. Engagement in and support of community development is the responsibility of an enterprise. For airlines, the community covers not only the location of the company, but also the landing areas. The routes of China Eastern have reached 177 countries around the world. With the opening of routes, our communities have also expanded. It is our responsibility and also a must for gaining community support to actively engage in community affairs and promote community development.

Management approach

We get deep into the community to actively carry out charitable activities and provide care and help for the disadvantaged groups. We have formulated and released related regulations, such as Regulations on Management of “Love in China Eastern” Public Welfare Activities , Management Measures on Application of “Love in China Eastern” Public Welfare Activities and Articles for “Love in China Eastern” Registered Volunteers . In 2017, the Company continued to improve the regulations on management of “Love in China Eastern” public welfare activities, increased public welfare activities, enriched the connotation of activities, innovated in the public welfare model, and released the mobile platform of “Love in China Eastern” to provide opportunities for volunteers to participate in the planning of various activities.

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All departments, branches and subsidiaries also actively adopted various ways to serve the local community. The Passenger Cabin Department of Wuhan Branch has provided free trip to candidates for college entrance examination to the examination centers for 12 years in a row. Gansu Branch and Wuhan Branch made joint efforts to build pair-helping communities and visited poor residents there. The “Pavilion Aiwan” Volunteer Team of Zhejiang Branch, relying on the aviation health care resources, provided care services and emotional care for elderly people, such as the empty-nesters, the severely handicapped or disabled, and dying patients in communities, hospitals, and nursing homes.

Since the launch in 2010 to December 2017, “Love in China Eastern” has implemented 7,527 projects, with 363,864 person-times participation, 395,716 people benefiting in total and with total service time of approximately 1,100,322.4 hours. In November 2017, the subprojects of “Love in China Eastern”, “Civil Aviation Knowledge into the Campus”, “Pavilion Aiwan” and “To Dream of Wings” won the Silver Prize and Bronze Prize of the 1st National Civil Aviation Youth Volunteering Service Project Competition. In December 2017, the project of “Love in China Eastern” was successfully nominated for the National Youth Volunteering Service Demonstration Project and was the finalist winner.

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“Love in China Eastern” Public Welfare Project Finals

Continuing to deepen the “Love in China Eastern, Campus Line” project, and promoting the cooperative projects proposed in the “Love in China Eastern · Integrity Ticket” project and the “Go West” College Graduates Volunteer Program

During the Spring Festival, we carried out the “Warmer Winter Action” voluntary campaign and organized “Go Home with Warm” activities in Shanghai, Beijing, Xi’an, and Kunming to send passengers a blessing for the Spring Festival, conduct volunteer activities to provide consulting services to passengers, and guide travelers to withdraw and check in luggage.

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Conducting the “Love in China Eastern • Healthy Children” campaign with Shanghai Children’s Hospital and Delta Air Lines together, providing gratuitous treatment and for eight children with congenital heart disease from Cangyuan county, Yunnan and free travel and accommodation for their surgeries in Shanghai.

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Number of Staff Participating in Public Welfare Activities (person time)

3.3.9     Special Flight Guarantee

As an essential part of the public transportation system and emergency rescue system, civil aviation plays an important role in ensuring the smooth progress of major events and the stable development of the society. With rich experience in transportation and abundant resources, China Eastern has been committed to taking important transportation and emergency rescue flight missions.

Management approach

China Eastern actively takes on various emergency transportation and rescue tasks. In strict accordance with the requirements of the Civil Aviation Administration of China, the Company has been always started emergency response timely, arranged properly from top to bottom, and carefully prepared. In 2017, we participated in the disaster relief of Dominica Hurricane and the rescue work of the Bali volcanic eruption disaster and were highly praised by related departments and the public. In 2017, we set up a guaranteeing service working group, held a special meeting to conduct unified deployment and arrangements for the service work during the 19th CPC National Congress, and released the Notice of China Eastern on Effectively Completing the Work concerning the Four Guarantees to identify the specific job requirements for service.

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Special missions in 2017

135 flights

4 Appendix

Performance Indicators

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109

110

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Note: Eastern Logistics was emerged from China Eastern Airlines Corporation Limited in February 2017. Economic performance indicators including total assets, operating revenue, total profits, utilization rate of aircrafts, taxes and fees, and total tax payment, and environmental performance indicators excluding the recycling quantity of aviation fuel, only cover the data of January 2017 of Eastern Logistics; the statistics caliber of employee data was the data obtained at the end of the reporting period, which excluded the data of Eastern Logistics.

GRI Standards Content Index

This Report has been prepared in accordance with the GRI Standards: Core option.

HK-ESG Index

见附件。

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Assurance Statement

Feedback Sheet

Dear Sir/Madam,

Thank you for reading China Eastern Airlines Corporate Social Responsibility Report 2017. To provide more meaningful information, facilitate monitoring our CSR work and improve our management and practice of social responsibility, we sincerely await your opinions and suggestions.

Please fill the feedback sheet and mail it to us according to the following address:

Department: Party Publicity Department of China Eastern Airlines

Tel: 021-22331435 Fax: 021-62686883 E-mail: ceanews@163.com

Address: No. 92, Konggang No.3 Road, Changning District, Shanghai(200335)

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2. What’s your assessment of China Eastern Airlines Corporate Social Responsibility Report 2017?

4. What is your assessment of this report in terms of the response to and the disclosure of topics concerned by stakeholders?

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