CHEAF China Eastern Air (PK)

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.

China Eastern Airlines Corporation Limited

Corporate Social Responsibility Report 2019

High-quality Development for a Sustainable Future

What does sustainable development mean for China Eastern Airlines?

The aviation transport industry bears an important mission of advancing humanistic exchange, economic and trade exchange, and cultural communication. It also reconstructs individual lifestyle and corporate ecology. The sustainable development of the aviation transport industry needs to balance aviation resources, social needs, environmental factors and economic benefits. How to reduce negative impacts on society and the environment and maximize its positive impacts on sustainability are important challenges that we have been thinking about. We believe that responsible and sustainable operations make more positive contributions to sustainable development and also brings us more innovation opportunities, stronger partnerships and more sustainable growth.

1 About the Report

This CSR report is the 12th of its kind released by China Eastern Airlines Corporation Limited since 2009. By disclosing the Company’s CSR concepts and practices, it aims to promote better communication and interaction with stakeholders, facilitate the establishment of trust and cooperation based on the same value identification, and foster the sustainable development of the Company and the society.

The contents of this report mainly cover the Company’s management and practice from January 1, 2019 to December 31, 2019. Some data and contents may extend beyond the time scope if necessary.

The Report is published annually. The latest report was released in April, 2019.

The report covers the entire company (including its branches and wholly-owned subsidiaries) and some practices may come from China Eastern Group and the holding subsidiaries.

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), the 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) issued by the Global Sustainability Standards Board (GSSB), Guidance on Social Responsibility (ISO 26000:2010) issued by International Organization for Standardization (ISO), Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 4.0) by Chinese Academy of Social Sciences, the 2030 Agenda for Sustainable Development, and supplement guidelines in aviation service industry. With systematic integration of crucial guidelines and standards, the report responds to stakeholders’

expectations and requirements and highlights industrial features and corporate characteristics.

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

To facilitate presentation and reading, “China Eastern Airlines Co., Ltd.” in this report also is referred to as, “China Eastern”, “the Company” and “We”. “China Eastern Air Holding Company” is referred to as “China Eastern Group”. The subsidiary “Shanghai Airlines Co., Ltd.” is referred to as “Shanghai Airlines”. “China United Airlines Co., Ltd.” is referred to as “China United Airlines”. “Eastern Airlines Technology Co., Ltd.” is referred to as “the Technology Company”. “China Eastern Airlines Technology R&D Center Co., Ltd” is referred to as “China Eastern R&D Center”. “Shanghai Airlines Tours International (Group) Co., Ltd.” is referred to as “Shanghai Airlines Tours International”. All branches are referred to as “the name of region + Branch”.

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:

Department of Corporate Culture and Brand Management of China Eastern Airlines

Telephone: 021-22331435

Fax: 021-62686883

Address: No.36 Hongxiang 3rd Road, Minhang District, Shanghai, China

Zip Code: 201100

2 Message from the Chairman

As the world is undergoing the greatest changes in a century, global governance faces a complicated situation. Multilateralism and economic globalization have been challenged amid the rising trade protectionism and unilateralism. Climate change, inequality and imbalance and other sustainable development challenges grow more intense, with more uncertainties and instabilities. However, the trend of economic globalization is inevitable, and peace and development continue to be the main themes of the times.

The year 2019 witnessed the 70^th anniversary of the founding of the People’s Republic of China and it was also a critical year to build a moderately prosperous society in all respects. Facing increasingly intense global challenges, China has firmly stepped up efforts in deepening reform in all areas and accelerated the innovative, green and high-quality development. China Eastern is deeply aware of the importance of reform and development and pursues a development pattern of higher quality, efficiency, equality and sustainability. Throughout the year, China Eastern received the routine inspections from the Central Leading Group for Inspection Work and launched the campaign on the theme of “staying true to our founding mission”, embarking on a new stage for high-quality development in the new era with stronger belief and resolve.

High-quality development is the only way to build a world-class enterprise with global competitiveness. And safety is the most important foundation for a high-quality, efficient and sustainable development. For years, China Eastern has thoroughly implemented the important decisions and deployment of the CPC Central Committee on civil aviation safety, and put safety first and always. In accordance with the highest safety standards, we conducted the strictest safety drills to improve the management of the safety system. In 2019, we operated 988,000 safe flight for 2.394 million hours, ensuring flight safety and air defense security, with the zero serious accident rate of aviation transport for the tenth year. As a response to the major hidden safety hazards of B737MAX, we first grounded B737MAX and suspended the use of the aircraft, which led to global consensus of grounding the B737MAX series fleet. This move fully demonstrated our resolution of zero tolerance for hidden safety hazards, achievements in safety governance system and competency improvement, and the responsibility fulfillment of central state-owned enterprises (SOEs), winning nationwide and worldwide recognition.

In the big trend of global economic integration, aviation transport plays a greater role in promoting global connectivity and economic development. We, with strong sense of responsibility and mission, have been committed to serving the national and even global development. As an air

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bridge connecting the world, we have stepped up our efforts in building global flight network and a Silk Road in the air. In 2019, we successively launched new routes to Budapest, Yangon, Mandalay and other international destinations. Moreover, we built China Eastern base and put it into operation at Beijing Daxing International Airport (BDIA), making several records such as “the first accredited airline at BDIA”, “the only airline in China engaged in the whole process of test flight”, and “the first airline to switch operations to BDIA and put into operation”. As the satellite hall of Shanghai Pudong International Airport was officially put into operation, China Eastern initiated the operating model of “two hubs with four airports in Beijing and Shanghai” and unveiled a new chapter in serving the Belt and Road Initiative, the coordinated development of the Beijing-Tianjin-Hebei Region, the Yangtze Delta integration, and the construction of Xiong’an New Area. This also provided us with strong momentum for high-quality development.

Benefiting the people with fruits of development and better meeting people’s needs for a better life are the fundamental goals of our high-quality development. We have made unremitting efforts to achieve these goals. We keep promoting supply-side structural reform and building a considerate airline, in order to achieve a high level of dynamic balance between supply and demand, and improve passengers’ sense of safety, achievement and happiness. New technologies, new applications and new forms of business related to AI, big data and Internet of Things emerge as the new round of technological revolution and industrial revolution pace up. To some extent, this accelerates the innovation-driven revolution of aviation industry. In 2019, we launched the integrated service system for smart travel, becoming the world’s first airline to promote the “5G+AI” new technology. We became the first to provide facial recognition check-in service and battery-less luggage tags, and redefined the new standards of smart, scenario-based and convenient aviation service, unlocking unlimited possibilities of smart air travel. As a Shanghai-based airline, we guaranteed aviation transport service for the 2^nd China International Import Expo (CIIE). Through the platform, we signed agreements with 14 suppliers from 9 countries and regions. Thus, we have realized “purchasing, flying and serving worldwide”.

In the new era, “green development” has become the common form for pursuing high-quality development. Shouldering the responsibility of ecological protection, we spare no efforts to prevent and control pollution. In 2019, we continued our Battle for Blue Sky by enhancing efforts in energy conservation and emission reduction, with focus on the energy consumption reduction per unit of production. We invested nearly RMB 50 billion to introduce more eco-friendly and efficient new planes. At the same time, we improved our energy conservation and consumption reduction administration system. Throughout the year, 195,500 tons of jet fuels were saved, which equals to

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reducing about 610,000 tons of carbon emissions. We actively fulfilled the responsibility of a central SOE to help win the fight against poverty and provided constant assistance for poverty-stricken areas, striving to achieve “high-quality, high-level and sustainable” effects in poverty alleviation. Apart from more investment and projects, we expand the route network to cover 68 airports in poverty alleviation areas, connecting the radiating poverty-stricken counties with the outside world.“Poverty alleviation through aviation support” supported the opening up, economic and social development of impoverished areas. In 2019, China Eastern’s fixed-point poverty alleviation counties—Shuangjiang County and Cangyuan County in Yunnan Province, were lifted out of poverty ahead of schedule and nine poverty alleviation villages supported by China Eastern in Shaanxi, Shanxi, Jiangxi, Gansu, Yunnan, Anhui and Jiangsu, etc. were also lifted out of poverty.

In early 2020s, rising to the sudden outbreak of “Coronavirus disease 2019 (COVID-19)”, the Chinese government took the most resolute and forceful measures to effectively prevent it from spreading throughout the world and sparing no efforts to protect Chinese people’s safety and health. Firmly upholding the decisions and deployment of the CPC Central Committee and the State Council, we have always put people’s safety and health first and resolutely taken effective measures to ensure the pandemic prevention and control while promoting work and production resumption, regardless of the difficulties. With a relatively low passenger load factor at this time, we fully guaranteed accessible flights for all domestic routes and some major international routes. Prudent steps were taken to protect the health and safety of our customers and employees during the pandemic. “China Eastern stands by for the call of the motherland.” We were the first in civil aviation industry in China to fly a chartered flight for medical personnel bound for Wuhan. The chartered air freight volume of China Eastern occupied over 40% of the industry. We unblocked a “channel in the air to save lives”, transporting medics and supplies to aid the battle against COVID-19 in Wuhan. Fighting in places where the nation and people most need us is a glorious tradition for China Eastern as a central SOE and also the gene of China Eastern people. While ensuring effective prevention and control, we took scientific and orderly steps to promote work and production resumption and unite social forces to fight against COVID-19, making active contributions to building a community with a shared future for mankind.

Chinese President Xi Jinping highlights sustainable development is the “golden key” to solving global problems. China is now standing at a historical convergence point; the year 2020 is the conclusive year to build a moderately prosperous society in all aspects and a critical year to achieve the two centenary goals. The new journey, new challenges, new revolution, new opportunities and new driving force in 2020 bring new hopes for economic and social development.

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Stepping into a new stage of high-quality development in the new era, we will firmly pursue the vision of innovative, coordinated, green, open and shared development in the context of global sustainable development. While advancing the goal of “building a world-class airline and a happy China Eastern”, we will continue our efforts to help build China’s strength in transportation and civil aviation, supporting China to implement the 2030 Agenda for Sustainable Development and contributing more to global sustainable development.

Liu Shaoyong

Chairman

China Eastern Airlines Corporation Limited

March 11, 2020

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3 About China Eastern

3.1 Company Profile

Headquartered in Shanghai, China Eastern Airlines Corporation Limited (hereafter referred to as China Eastern) is one of the three state-owned backbone airlines of China. Originating from the first civil aviation squadron established in Shanghai in January 1957, it is the first Chinese airline to be listed in New York, Hong Kong and Shanghai. With 62 years of development, it has ranked top 10 among global airlines. Currently, it operates a fleet of over 730 aircraft with an average of 6.4 service years, which is one of the youngest fleets in major airlines worldwide. Moreover, it boasts the largest-scale in-flight Wi-Fi wide-bodied fleet with leading commercial and technical models in China.

During recent years, China Eastern has taken deepening comprehensive reform as the main task. Led by international and internet-based development, we focused on transformation and development, brand building and capability enhancement for leapfrog development, and realized a “Golden Decade (2009-2018)” for China Eastern’s development. We are committed to pursuing the vision of “building a world-class airline and a happy China Eastern”, and have sped up the transformation from a traditional air carrier to a modern air service integrator. Currently, we have four hubs in China, namely Shanghai, Beijing, Xi’an and Kunming. The scope of our businesses in China cover all airports at municipalities and provincial capitals as well as those with above 10-million-passenger turnover. At present, we operate 109 outlets (46 domestic and 63 overseas) across the globe. Relying on the SkyTeam Airline Alliance, we have established an aviation transport network covering 1,150 destinations in 175 countries and regions. The annual passenger turnover of China Eastern exceeds more than 130 million, ranking top 10 among global airlines. China Eastern has always provided global travelers and customers with quality and convenient aviation transport and extended services.

Focusing on providing high-quality aviation transport service, China Eastern is committed to becoming a smart air travel service supplier that pursues internationalized and internet-based development. It has won “Flight Safety Diamond Award” —the highest flight safety award in China, rated as Top 50 Most Valuable Chinese Brands by the world’s famous brand rating agency—WPP for eight consecutive years and Global Top 500 Most Valuable Brands by the UK’s brand rating agency—Brand Finance for four consecutive years. Additionally, China Eastern has received awards at home and abroad for operating quality, service experience, and social responsibility fulfillment, etc.

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Fleet structure in 2019

Note: The data of freight aircrafts of China Eastern Group’s subsidiaries are excluded.

3.2 Corporate Strategy

Adopting the new development vision, China Eastern has advanced the development plan of “1232”, that is, regarding comprehensively deepening reform as the main task, focusing on internationalized and internet-based development, and setting transformation and development, band building and capability improvement as the three guarantees to realize the vision of “building a world-class airline and a happy China Eastern”. In 2019, as China’s economy progressed into high-quality development from the rapid growth, China Eastern embarked on a new stage of high-quality development in the new era based on the new achievements of the “Golden Decade”, with the strategic goal of building a world-class enterprise with global competitiveness.

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Connotations of China Eastern’s High-quality Development

3.3 Corporate Governance

China Eastern has continuously improved corporate governance structure in strict accordance with the listing rules in China and overseas and related laws and regulations. In 2019, in line with Code of Corporate Governance for Listed Companies and Guidelines for Articles of Association of Listed Companies (2019 Revision), the Company systematically revised the Articles of Association, Rules of the General Meeting of Shareholders, Rules of Deliberation of the Board of Supervisors, rules of deliberation of specialized committees of the Board of Directors and other important regulations. The Company took orderly steps to promote the elections of the Board of Directors and the Board of Supervisors.

The Board of Directors attaches great importance to ESG administration. In 2019, the Aviation Safety and Environment Committee was set up for implementing national laws and regulations on aviation safety and environmental protection, conducting inspections and supervision over the Company’s aviation safety work, researching, reviewing and proposing advice on the Company’s aviation safety work plans, major safety issues as well as major environmental issues related to aviation carbon emissions at home and abroad, and supervising the implementation of related advice. The Audit and Risk Management Committee is responsible for inspecting and supervising the Company’s financial reporting, risk management as well as internal control, internal legal system

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building, inspecting and evaluating the Company’s overall risk management (especially risk management and control systems for major decisions, events and businesses), and supervising the implementation of these systems.

In 2019, the Company held 14 meetings of the Board of Directors, including five Board meetings; two shareholder meetings, and 22 meetings of specialized committees. In order to further improve corporate governance and enhance duty fulfillment of directors, supervisors and senior executives, China Eastern organized independent directors to conduct five field researches at home and abroad, including in China Eastern base at BDIA, China United Airlines, China Eastern R&D Center, etc. Directors, supervisors and senior executives were organized to attend 22 trainings of duty fulfillment for listed companies.

Board of directors and core management

…

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Corporate Governance Framework

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Organizational Framework

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中国东方航空股份有限公司    China Eastern Airlines

办公室    General Office

董事会办公室 Board Office

人力资源部 Human Resources Department

财务会计部 Accounting Department

规划发展部 Planning and Development Department

法律合规部 Legal Compliance Department

全面深化改革委员会办公室 The Leading Group Office of Comprehensively Deepening Reform

安全监察部 Safety Supervision Department

运行管理部 Operation Management Department

飞行技术管理部 Flight Technology Management Department

机务工程部 Maintenance Engineering Department

审计部 Auditing Department

保卫部 Security Department

党委组织部（统战部）Party Work Department (United Front Work Department)

党委宣传部（企业文化与品牌管理部）

Party Publicity Department (Corporate Culture and Brand Management Department)

纪委办公室 Commission of Discipline Inspection Office

党委巡查工作办公室 Party Committee Inspection Office

群团工作部 Labor Union Office

机关党委 Party Committee Office

机关纪委 Discipline Inspection Office

子公司 Subsidiaries

上海航空有限公司 Shanghai Airlines Co., Ltd.

东方航空云南分公司 China Eastern Airlines Yunnan Co., Ltd.

中国东方航空江苏有限公司 China Eastern Airlines Jiangsu Co., Ltd.

东方航空技术有限公司 Eastern Airlines Technology Co., Ltd.

中国东方航空武汉有限责任公司 China Eastern Airlines Wuhan Co., Ltd.

中国联合航空有限责任公司 China United Airlines Co., Ltd.

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东航技术应用研发中心有限公司 China Eastern Airlines Technology R&D Center Co., Ltd

一二三航空有限公司OTT Airlines Co., Ltd.

分公司 Branches

西北分公司 Northwest Branch

北京分公司 Beijing Branch

山东分公司 Shandong Branch

安徽分公司 Anhui Branch

江西分公司 Jiangxi Branch

山西分公司 Shanxi Branch

浙江分公司 Zhejiang Branch

甘肃分公司 Gansu Branch

四川分公司 Sichuan Branch

广东分公司 Guangdong Branch

业务单位 Business units

上海飞行部 Shanghai Flight Division

地面服务部 Ground Services Department

运行及客户中心 Operation and Customer Center

商务委员会 Business Committee

销售委员会 Sales Committee

客户委员会 Customer Committee

总值班经理室 Chief-on-duty Manager Office

客舱服务部 Cabin Service Department

空保管理部 Air Security Management Department

信息部 Information Department

综合管理部 Integrated Management Department

虹桥建设指挥部 China Eastern Hongqiao Construction Headquarters

北京大兴国际机场东航基地项目建设指挥部 China Eastern Base Project Construction

Headquarters in Beijing Daxing International Airport

Note: In 2019, Shanghai Airlines Tours International (Group) Co., Ltd., a wholly-owned subsidiary

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of China Eastern, altered its ownership structure as the shareholding ratio of China Eastern was adjusted to 35%. China Eastern Business Jet Co. Ltd., originally wholly-owned by China Eastern, was renamed OTT Airlines Co., Ltd.

3.4 Party Building

In 2019, the Party committee of China Eastern took implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the main task, gave full play to Party organizations’ role in leadership and oversight, and incorporated the Party’s leadership into corporate governance, contributing to high-quality corporate development with high-quality Party building.

The Party Committee of China Eastern continued to improve Party building quality and level and transformed the political and organizational advantages of Party organizations into a strong drive of corporate reform and development; underlined the integration of Party building into production and operation and promoted Party building to improve corporate profitability and competitiveness. With these efforts, China Eastern fully fulfilled the mission assigned by the CPC Central Committee and used operational performance and outcomes of reform and development to evaluate effects of Party building.

During routine inspections from the Central Leading Group for Inspection Work and the campaign on the theme of “staying true to our founding mission”, the Party committee of China Eastern integrated the vision for “Big Enterprise, Strong Party Building” with the implementation of the Party building accountability system, so as to form a new pattern of Party building. In response to the 51 problems in four categories detected during special inspections and 20 pieces of advice given by the inspection group, we conducted corresponding rectifications, with a completion rate of 94.8 percent. During the campaign, we held 15 seminars, organized thematic reading classes, and used online resources (developing and operating Party Building Website on PC terminal and Mobile APP, and operating China Eastern Party Building Account on WeChat) to encourage Party members and officials to study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, ensuring that the Company is reforming and developing towards a right political direction.

The Party committee of China Eastern combines Party building at grassroots with production and operation and ensures primary-level CPC organizations play a leading role. In 2019, the “Blue Sky Party Group” organized 183 exchange meetings and cumulatively 1,980 crew members participated in the activity. The “Blue Sky Party Group” project received the first prize of

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Outstanding Research Projects by Central SOEs Party Building and Ideological Work Research Institute and was included in the collection of excellent cases of primary-level Party organization secretaries’ practices. Moreover, we continuously enhanced the team building of officials and issued the Opinions on Further Motivating Officials to Fulfill Responsibility in a New Era to firmly advance full and rigorous governance over the Party.

3.5 Anti-corruption

China Eastern earnestly implements the requirements of improving Party conduct and clean governance and anti-corruption of central SOEs. Based on the opinions of the Central Leading Group for Inspection Work (CLGIW) on special inspections of China Eastern and the actual situation of China Eastern, we formulated the Work Plan of Discipline Inspection Group for Making Rectifications and Enhancing Supervision based on the Opinions of the 13^th CLGIW on Special Inspections of China Eastern, the Work Plan of Discipline Inspection Group for Implementing Rectifications based on the Opinions of the 13^th CLGIW on Special Inspections of China Eastern, and the Work Priorities of Promoting and Supervising Internal Inspections and Rectifications in 2019, which stupilated the inspection and rectification supervision should be integrated into daily supervision work scope, and proposed to promote the Party conduct and clean governance and anti-corruption work by means of investigation, circular, spot check, undercover interview and discipline inspection advice. At the same time, we established the working group for Party conduct, clean governance and anti-corruption led by the head of Discipline Inspection Group, so as to promote exchange of supervision resources and enhance anti-corruption efforts.

Measures for Anti-corruption

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3.6 Investor Relations Management

In strict accordance with the regulatory requirements for listed companies, China Eastern fulfills its responsibilities of information disclosure and continuously improves the disclosure quality. In 2019, the Company further enhanced basic administration and organized the document compilation of regulatory laws and regulations on state-owned capital and operation of listed companies as well as internal rules and regulations. Moreover, the Company systematically sorted out related party transactions for the period 2020-2022, corresponding decision-making and announcement procedures. According to the regulatory rules of New York, Hong Kong and Shanghai Stock Exchanges, the Company issued 103 reports, including the annual report, interim report, as well as announcement documents of major capital projects, aircraft purchase right transfer and daily related party transactions, etc. in 2019.

In 2019, the Company also enhanced market value management. We held the first meeting of Market Value Management Committee where the detailed working rules of market value management committee, work scheme for market value management and the 2019 work plan for market value management were reviewed and approved. Regarding private placement of shares, we coordinated market value management and investor relations management. To enhance communication with professional investment institutions and investors at home and abroad and improve investor relations management, we held two teleconferences for domestic and overseas analysts, organized four overseas roadshows, talked with 70 institutional investors, and received 146 investment banking analysts and institutional investors in 20 batches for research and exchange; we attended 26 strategy meetings of security companies, and had effective communication with investors on Shanghai Securities E-info Platform (sns.sseinfo.com). All the endeavors have improved our corporate image in the capital market.

3.7 Compliance Management

Legal compliance is the cornerstone for a company to achieve stable and healthy operation. China Eastern has firmly observed business ethics and steadily advanced the building of a law-based China Eastern to ensure legal compliance. In accordance with the working rules of the SASAC for the decision-making system of the Four Major Issues (major issues, major officials appointment, major project arrangements, and use of large-volume capital), the Company formulated the Interim Regulations of China Eastern on Legal Review of Decision-making of the Four Major Issues, and revised the Implementation Plan for Comprehensively Promoting the Law-based China Eastern

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(2019 revision), Measures for the Administration of Legal Dispute Cases, Interim Measures for Assessment of Law-based Governance and other systems, so as to enhance top-level design of legal compliance.

In order to better serve the internationalization strategy, China Eastern strictly follows Chinese laws and regulations, and laws and regulations of relevant countries and regions on anti-monopoly and anti-unfair competition to enhance overseas compliance management for maintaining stable and orderly market order and environment. Meanwhile, China Eastern continues to enhance administration of contracts and lawsuit disputes to protect its legal rights and interests. In 2019, the contract fulfillment ratio reached 100%; no lawsuit dispute over monopoly and unfair competition occurred.

3.8 Technological Innovation

China Eastern pays great attention to promoting the high-quality development through technological innovation. In 2019, we organized trainings based on R&D plans and promoted R&D with the drive of business operation. Through building a R&D innovation platform, we endeavored to improve R&D innovation efficiency and speed up the transformation of technological outcomes.

In 2019, China Eastern issued the regulations and implementation rules for research projects of the R&D Center; established the review committee for high-value projects and approved five projects of this kind; the Company also enhanced intellectual property protection and management; obtained three software copyrights and one registered trademark, and applied two invention patents and one registered work.

China Eastern continues to advance the application of big data technology. China Eastern Safety Analysis Platform (MSAP) has effectively improved data security and shaken off the dependence of aviation big data on foreign analysis software; the Company persists in the deep integration of innovation and business development, and launched the first online English language learning platform for flight attendants.

China Eastern has completed the development of application of eight special airport scenario databases; adopted low-cost aviation material alternatives and maintenance & repair projects; and

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accomplished the analyses of 13 research projects including the Analysis on Risks of Tail Strike during Takeoff. In response to two Boeing 737MAX crashes, the Analysis Report on the Aircraft’s Abnormal Big Angle of Attack studies the flight data of different aircrafts operated by China Eastern to analyze the causes behind it. The report provided data evidence for China Eastern’s unprecedented decision on suspending Boeing 737MAX aircraft before Boeing adopted follow-up measures and disclosed the causes of the crashes.

3.9 Risk Control

China Eastern highly values comprehensive risk control and spares no efforts to prevent and tackle major risks, improve its capability, which is a solid guarantee for building a world-class enterprise with global competitiveness in a faster pace. In accordance of the SASAC’s Notification on 2019 Task of Central State-owned Enterprises for Comprehensive Risk Control, and the Notification on 2019 Task of China Eastern Group for Comprehens ive Risk Control, we conducted risk evaluation for Year 2019, and identified five major risks based on two dimensions: possibility of risk occurrence and the estimated risk impact. The five major risks: safety operation risk, business operation risk, cyber information security risk, legal compliance risk and major project management risk were identified. Furthermore, we formulated a chart for major risks and took targeted measures to constantly improve risk resistance ability and safeguard the stable and robust development.

Risk Control Measures

3.10 Informatization

China Eastern is committed to being a smart air travel company that provides informatized, digital and internet-based services. We have established the informatization work mechanism and organizational management system, improved information infrastructure, and promoted the integration of information technology and corporate operation. With these efforts, the cybersecurity protection capability and informatization-driven innovation and development capability has been enhanced, facilitating the Company to achieve a high-quality development.

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While promoting informatization, we value the role of innovation. We pay attention to Intellectual property and patent protection, nurture culture for innovation, and continuously enhance our innovation capability in a fair internal competition environment. Since applying emerging technologies into production in November 2018, we have launched independent R&D projects including “Dong Dong” third-generation robot, China Eastern Smart Customer Service, AI Competence Platform, AI Flight Receipt and Invoice Verification, etc. In 2019, our Information Department accomplished 48 system certifications of software copyright, with 21 systems under certification.

3.11 Flighting COVID-19, China Eastern in Action

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As of March 25, 2020, China Eastern has operated 154 chartered flights for COVID-19 fight, transporting 15,937 medical personnel and 3,634.54 tons of pandemic prevention and control materials; the controlling shareholder China Eastern Group donated RMB 10 million for the prevention and control of the pandemic.

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4 At-A-Glance 2019

4.1 Highlights

4.1.1 Spotlight: Contributing to a better future with BDIA

On September 25, 2019, Beijing Daxing International Airport (BDIA) was officially put into operation. As a Shanghai-based airline, China Eastern participated in and witnessed the whole process of BDIA construction. With these solid work efforts, China Eastern sent wishes to our motherland to celebrate the 70th founding anniversary of the People’s Republic of China.

BDIA is a typical exemplar of the practices of socialism with Chinese characteristics for a new era, and a vital portal to demonstrate China’s governance, strength and potentials.Upholding the guidelines of “refined project, model project, safe project, and anti-corruptionproject”, China Eastern implemented the goals of building “a safe, green, smart andhumanistic airport” proposed by Civil Aviation Administration of China (CAAC) and tookscientific and orderly steps to participate in project planning, project construction, operationpreparation, and general aviation operation, etc. The Company had created several recordsof No.1 and won the praise of CAAC for its excellent performance in BDIA construction.

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As an airline based at BDIA, along with other SkyTeam Alliance members, China Eastern strives to build BDIA into a core hub for SkyTeam Alliance in the Asia-Pacific region. The aviation hub in Daxing will connect 1,150 destinations in 175 countries and regions across the globe.

Relying on the new “power source” of BDIA, China Eastern developed a strategic layout connecting two hubs and four major airports in Shanghai and Beijing, and plan for a new upgrade based on technology-driven smart services and airport industry development. In these endeavors, China Eastern aim to build a higher-level global network, serve national strategies such as the coordinated development of the Beijing-Tianjin-Hebei Region and the high-quality development of Yangtze Delta integration, and contribute to the construction of Xiong’an New Area.

4.1.2 Milestones 2019

China Eastern launched a series of publicity activities on the theme of “Striving towards the New Era as A Pillar Airline”, “Growing up with My Motherland”, and so on. Diverse activity forms such as series clips, cartoons and interactive H5 pages were adopted to eulogize the motherland, promoting the patriotism in the whole society.

From March to June, China Eastern received the routine inspections from the 13^th Central Leading Group for Inspection Work (CLGIW) and launched the campaign on the theme of “staying

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true to our founding mission”. Through CLGIW discipline inspections and the theme campaign, China Eastern made efforts to boost morale for building a world-class carrier and promote the high-quality development.

In March, after judging that B737MAX aircraft had serious hidden risks, China Eastern immediately decided to remove the series of planes from service. It is the first airline in the world to suspend the use of B737MAX aircraft. The move timely prevented China Eastern, Chinese civil aviation and even global civil aviation from suffering serious safety risks. In May, China Eastern officially raised its demand for claims with Boeing, which was the first airline in China to do so.

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In March, Liu Shaoyong, Chairman and Party Group Secretary of China Eastern Group, Chairman and Party Secretary of China Eastern, and a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), submitted two proposals at the “Two Sessions” in 2019. The two proposals are “Supporting the Healthy Development of Homemade Passenger Jet Sector, and Improving Its Core Competitiveness” and “Improving the Air Passenger First Aid System”. On May 8, Chairman Liu delivered a speech of “China Eastern’s Development—the Reform of a State-owned Enterprise” at East China Normal University; In November, Chairman Liu attended the Dialogue session on the 2nd China International Import Expo (CIIE) to discuss this topic with domestic and foreign entrepreneurs. Li Yangmin, General Manager and Chairman and Deputy Party Group Secretary of China Eastern Group, General Manager and Deputy Party Secretary of China Eastern, delivered speeches of “How China Eastern Achieve Internationalization and Internetization” and “Improving Core Competitiveness of Central SOEs in Worldwide Competition” respectively on Chinese Civil Aviation Development Forum and “SOE Leaders’ Talk” Symposium. Besides, Li Yangmin attended the Dialogue talk show on CCTV News to share the highlights of China Eastern during BDIA construction.

In 2019, China Eastern invested more resources in fixed-point poverty alleviation and achieved much more than expected. Its route network realized full coverage of poverty-stricken areas. Poverty alleviation through aviation support has played a crucial role in GDP growth of impoverished areas. China Eastern invested RMB 18.2517 million in poverty alleviation, and helped lift the fixed-point poverty-alleviation counties—Shuangjiang County and Cangyuan County—out of poverty in the end of April.

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On September 16, the world’s largest independent satellite hall—Shanghai Pudong International Airport Satellite Hall was officially put into operation. As the largest Shanghai-based airline, China Eastern was deeply engaged the design and construction of the satellite hall, including overall planning, infrastructure construction, process design, technological application, and other links. China Eastern is the first to park at the satellite hall’s parking lot and operate the first flight departing from there, symbolizing that China Eastern has initiated the new operation model featuring “Terminal 1+Satellite Hall 1”. In future, China Eastern will rely on worldwide route network to provide global travelers with smarter, better and more convenient travel experience, and join hands with related parties to build Shanghai into a world-class aviation hub.

In September, China’s first and oldest airport—the 109-year-old Beijing Nanyuan Airport was officially closed down. On the day of Beijing Nanyuan Airport’s shutdown, China United Airlines transferred to BIDA and operated its first flight from Daxing, becoming the first airline in China to settle and operate at BIDA.

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In November, China Eastern provided quality aviation transport service for the 2^nd CIIE. It played an important role in guaranteeing chartered flights, passenger service, exhibit transport, and volunteer service. On the expo, the Company received 14 orders. The image of a central SOE, characterized by “flying, purchasing and serving worldwide”, was fully displayed. China Eastern’s distinctive vision and corporate practice manifested China’s opportunities and efforts to build an open world economy through cooperation, with innovation and for mutual benefits.

In 2019, China Eastern actively engaged in the development along the Belt and Road and created new achievements in building a Silk Road in the air. In March, the A350-900 wide-bodied passenger jet had its inaugural flight from Shanghai to Rome; in June, the first non-stop route bound for Hungary opened; in December, two new routes were added to the existing route network of China Eastern, namely, the Shanghai Pudong-Chengdu-Budapest route and the Shanghai Pudong-Xi’an-Budapest route.

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In 2019, China Eastern reached strategic cooperation with several units and made significant progress in deepening SOE mixed-ownership reform. In March, we reached an agreement with Greenland Group on the shareholding ratio of Shanghai Airlines Tours International. In September, we accomplished the cross-shareholding with JuneYao Group; both parties agreed that either party shall be the other party’s strategic shareholder and the capital for mutual cooperation exceeded RMB 13 billion. The cross-shareholding case has become an exemplar for the integrated development of state-owned capital and non-state-owned capital. In October, we signed a memorandum of cooperation with three world-class airlines -Air France, KLM Airlines and Virgin Atlantic- on advancing airline joint venture.

In 2019, China Eastern firmly upheld the philosophy of “putting life first and foremost” and took actions to save lives through aviation support. On February 13, we sent an emergency flight to transport a seriously ill two-day newborn baby to Xi’an Children’s Hospital for medical treatment. In March and in July, we conducted two diversion landings by dumping oil in the air for the emergency treatment of ill passengers; this was widely reported by the media including CCTV Face-to-Face, winning unanimous praise from the public. On November 26, all units of China Eastern

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collaborated to open “green channels” to guarantee the timely delivery of donated human organs. On December 24, the 3,200-kilometer flight to deliver lifesaving human organs was successfully concluded.

In December, China Eastern was awarded Top 100 China Brands, Top 20 Chinese Enterprises with Best Image Overseas (No.1 in transportation sector), and other honors. The Company was also included in the list of Cross-culture Communication Pilot Enterprises by the CPC Publicity Department and the SASAC. These honors are the best proof of China Eastern’s efforts and social recognition of our excellent performance, and will further boost our brand value growth and accumulation.

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4.2 Our CSR Performance

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5 Sustainability Management

5.1 Chartered Flights for Sustainability

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5.2 Materiality Management

In line with the GRI Standards, and based on the identification and analyses of material topics in 2018, we combined macroeconomic policy trends of global sustainable development in 2019 with our important strategic direction, and distributed questionnaires to key stakeholders for analyzing and modifying material topics. Finally, we identified 20 material topics.

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5.3 Stakeholder Engagement

Highly valuing the stakeholder engagement, we identify and respond to the concerns of stakeholders with a normalized communication and supervision mechanism, and further build a closer relationship with them. At the same time, we focus on key issues concerned by stakeholders and constantly improve management in order to better respond to their expectations.

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6 Safety · Flights from the Oriental

Safety is the cornerstone of the aviation industry. It helps secure social stability and economic development. A higher level of safety contributes to the higher-quality development. At China Eastern, we aspire to become one of the safest airlines. We continuously improve passengers’ sense of safety, gain and happiness, and make them feel safe in every flight operated by China Eastern.

6.1 Securing Aviation Safety

China Eastern always regards safety as our lifeline and pursue development with the vision of “life and safety first”. These endeavors lay a solid safety foundation for our new phase of high-quality development in the new era. In 2019, we secured flight safety and air defense, realizing a stable security situation.

6.1.1 Safety management system

China Eastern aligns itself with the Civil Aviation Law, Civil Aviation Safety Management Regulations and other laws and regulations on aviation safety. Under the guidance of President Xi Jinping on civil aviation safety work, we strictly abide by the safety work guideline “safety first, prevention first, comprehensive management, continuous improvement” to comprehensively improve the safety management system.

In 2019, we issued the Implementation Rules for Officials’ Work Safety Accountability and clarified the responsibility of the management at all levels; we prepared and released the Working Rules of Work Safety Commission to define the major duties and responsibilities of departments in charge of safety work. Besides, in a response to the amended Rules for the Determination of the Operational Eligibility of Large Public Air Transportation Carriers (CCAR-121-R5), China Eastern conducted systematic preparation and obtained the CAAC R5 operational eligibility certification in October 2019.

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To strengthen safety oversight and overhaul, we organized special safety inspections, safety management system evaluation, and cross-check operational safety audits among units at all levels. In 2019, we completed operational safety audits of 10 units and 27 terminals, conducted 19 on-site inspections and 16 special inspections.

Key performance:

In 2019

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6.1.2 Intensifying risk management

China Eastern steps up efforts in building an operational risk control system. Through the system, risk sources in different operation and development stages are identified and controlled to eliminate hidden hazards of aviation safety.

In a response to a fast-growing fleet and an increasingly growing volume of flights, China Eastern has established a leading group and a working team of large fleet safety operation management. They develop specific plans and continuously explore more efficient ways to manage a large fleet and mitigate safety risks the large fleet faces.

Measures to Enhance Large Fleet Safety Operation (partial)

In 2019, China Eastern promoted the full coverage of pre-flight alcohol testing and completed pre-flight alcohol testing for 261,700 (Shanghai-based) crew members. In the meanwhile, local employees were rationally included in the work schedule to save the crew from fatigue and reduce fatigue-caused safety risks.

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A Flight Crew Member Conducts Pre-flight Alcohol Testing on the All-in-one Alcohol Testing and Attendance Machine.

Caes:Eliminating major safety hazards and contributing our wisdom to the industry

To tackle the back center of gravity limit of A320NEO aircraft, we held several meetings to discuss and develop the management and control plan. We rebuilt the A320NEO aircraft by equipping the cargo bay with flat steel plates and modified related system parameters, effectively containing safety risks incurred by the back center of gravity. The rebuilding plan was taken as a reference by Airbus to prepare its cargo balancing interim plan for A320NEO aircraft. In this sense, we contributed our wisdom to the industry.

6.1.3 Empowering safety with technology

With the rapid development of information technologies, digital transformation has become one of the greatest trends for airlines to drive their transformation. We tap the value of safety data to make for safe and highly efficient flights, and enhance the support of IT applications to secure aviation safety, which cements the foundation for the airline’s safe development.

The application of new technology for civil aviation secures safe flights in low-visibility weather conditions, e.g., a dense fog, and helps guarantee flight punctuality. We actively arrange test flights for new technology and standards. As a result, the flight operation capability supported by new technology has been enhanced. Moreover, we coordinate with domestic airports to establish operation standards, laying a foundation for expanding the application of new technology in China’s civil aviation.

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At BDIA, we operated the test flight of A320 aircraft for low-visibility procedures such as ILS Category III B approach (CATIIIB) and takeoff based on the Head Up Display Runway Visual Range (HUD RVR) of 75-meter low visibility, becoming the first airline in China capable of HUD low-visibility takeoff. The test flight covered several test items of critical importance, laying a solider foundation for us to achieve high-level operation and flight punctuality and ensuring smooth travel for passengers after official operation at BDIA.

Instrument Landing System (ILS)

The Instrument Landing System (ILS) covers Category I (CATI), Category II (CATII) and Category III (CATIII) operations according to different runway visual ranges and decision heights. The highest standard operation CATIII can be further divided into A, B and C subcategories. A category III B approach is a precision approach and landing with no decision height or a decision height lower than 100ft (30m) and a runway visual range less than 700ft (200m), but not less than 150ft (50m).

China Eastern completes the RNP AR at Mount Fuji Shizuoka Airport, becoming the first Chinese civil aviation carrier to obtain an RNP AR approval overseas.

RNP AR

RNP AR stands for Required Navigation Performance Authorization Required. It is the application innovation that Chinese civil aviation has substantially promoted in recent years. RNP AR procedures are developed in the principle that the aircraft is flied along the best flight path repeatedly, which improves operation flexibility and aviation efficiency.

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The airline generates massive data in each flight. How to solicit high-quality and valuable data and enhance data analysis capability are challenges of airlines during digital transformation. We have established a leading group of flight big data application for flight safety management based on flight big data, and enhanced the data application in every business scenario. In 2019, we set up Quick Access Recorder (QAR)¹ big data for multi-dimensional analysis parameters, and further enhanced big data analysis ability based on it. The multi-dimensional parameters that could be utilized in analyses increased by 50%.

Closed-loop Flight Operation Safety Management based on Big Data

China Eastern data application platforms in 2019

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6.1.4 Improving safety competence

China Eastern values the theoretical learning as well as drills to build a stronger “Three-Leader” team (Captain, Chief Steward and Group Leader). The focus areas include front-line team members, basic knowledge, and essential competence, and it aims to improve safety literacy and competence of the staff. In 2019, more than 37,000 operation personnel and management personnel participated in the training of basic safety knowledge.

Measures to Improve Safety Competence in 2019

Integrated drills at Beijing Daxing International Airport.

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Coordinating with Shanghai Airport Authority to conduct special vehicle position drills

The finals of the 1st Civil Aircraft Maintenance & Repair Skills Integrated drills at Beijing Daxing International Airport. Competition held by Jiangsu Branch.

Integrated drills at the S1 Satellite Hall of Beijing Daxing International Airport.

6.1.5 Nurturing safety culture

During working hours, a favorable safety atmosphere helps make people behave safely in a conscious and active manner. China Eastern fosters a safety culture with safety campaigns. Through organizing diverse safety education and exchange activities, we encourage employees to report on safety risks and create a rich safety atmosphere.

In 2019, we set up the Short Message Service (SMS) Information Handling and Evaluation Mechanism for safety management personnel at all levels. Efforts were made to strengthen the analysis application system and enhance safety information management in the front line. Besides, front-line employees were encouraged to actively monitor, voluntarily report and timely respond to safety information. Throughout the year, we received over 23,000 voluntary reports on safety

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information and 1,325 pieces of information were rewarded.

The 5^th Ground Service Safety Forum

Jiangxi Branch holds the safety knowledge contest.

6.2 Safeguarding Passenger Health

Guaranteeing life, health and property safety are passengers’ fundamental needs for aviation transport service. China Eastern always acts in the interests of passengers and takes proactive measures to protect their health and safety.

In 2019, we continuously innovated in the working methods of safety management to enhance our prevention of cabin safety risks. Our “In-flight Medical Experts” program also helped improve the crew’s contingency response ability. While rigorously implementing catering supplier audit and inspection system, we explored ways of whole-process information tracking.

Major Measures to Protect Passengers’ Safety and Health in 2019

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“SAFE520” Work Method

Responding to complaint:

On November 20, 2018, we received a passenger’s complaint of foreign objects in the meal on Flight MU2007 (Shanghai-Macao route). After receiving the complaint, we immediately filed for record and investigated the matter according to related regulations. In January 2019, we sent representatives to apologize to the passenger in person, informed rectification efforts, and finally we reached a consensus with the passenger on complaint solution. To avoid such incidents in future, we strictly align with National Food Safety Standards of Onboard Food and other related rules and pay close attention to the quality of onboard food such as cold dishes, fruits and vegetables.

Case: Improving air first aid system to safeguard passenger health and safety

In recent years, in-flight medical emergencies have been on the rise, causing occasional diversions and course reversals. A traditional response is to seek volunteer physicians on board to give first aid. Due to the limits of this approach, sick passengers could hardly receive timely medical treatment.

During the “Two Sessions” in 2019, Liu Shaoyong, Chairman and Party Secretary of China Eastern and a member of the National Committee of the CPPCC, submitted the proposal “Improving air first aid system” and made the following suggestions: enhancing publicity and education to improve people’s safety and health awareness during air travel; enhancing trainings of flight crew to improve in-flight first aid response ability; enlarging the voluntary physician team for air first aid and conducting in-flight remote medical treatment; encouraging sick passengers to seek medical consultation before boarding to reduce air medical emergencies; improving airports’ contingency response ability and intensifying the collaboration between airports and the airlines; establishing the frequent flyer medical information system and providing passengers with whole-process safety service, and so on.

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Early in 2017, China Eastern cooperated with Shanghai Volunteer Physician League (SVPL) to launch the “In-flight Medical Experts” program. In 2018, China Eastern published In-Flight First-Aid Handbook, China’s first manual for in-flight first-aid. The Handbook provides detailed handling rules and operation standards for in-flight first aid, which improves in-flight first aid quality and efficiency.

On March 27, a passenger on MU551 (Shanghai-London Route ) suffered a sudden illness. The flight crew immediately determined to implement diversion landing by dumping 39 tons of fuel oil in the air to timely send the passenger to hospital for medical treatment. The flight crew member was interviewed by CCTV Face-to-Face. China Eastern’s quick response to in-flight medical emergency has won unanimous praise from the public.

Key performance:

In 2019

6.3 Caring for Employee Health

During the flight, a pilot’s health status may affect flight safety. As a result, the occupational health and safety of the crew is of critical importance to air carriers. Also, ground service activities such as aircraft maintenance and repair could expose employees to health and safety risks. Thus, China Eastern protects employees’ right to health and continuously improves occupational health management.

In 2019, in accordance with the new provisions of CCAR-121-R5 on crew members’ on-duty limits, flight time limitations and rest requirements, we developed the R5 fleet work schedule system. While guaranteeing crew members’ occupational health and safety, the system helped improve the operational

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efficiency of the flight crew.

Major Occupational Health and Safety Risks and Countermeasures

China Eastern Airlines Yunnan Co., Ltd. sets up the first “psychological consultation room for pilots” in China.

The passenger cabin department organizes the “China Eastern Lingyan Care

Day” to provide volunteer medical service.

7 High Efficiency · Flying across the Globe

High efficiency is an essential element of China Eastern’s highquality development. Higher efficiency means greater returns and better effects. To achieve this goal, we provide global

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passengers with quality and convenient aviation transport as well as extended service, and join hands with excellent partners to achieve win-win results.

7.1 Guaranteeing Flight Punctuality

Flight punctuality is a key indicator of civil aviation service quality. It is also one of the biggest concerns of passengers. Since the airline’s operation management largely affects flight punctuality, flight punctuality management is a focus of an airline to improve customer service quality.

We earnestly implement the Policies and Measures for Controlling Transport Volume and Adjusting Flight Structure to Improve Flight Punctuality issued by CAAC, and continuously enhances refined operation to improve flight operation quality. In 2019, we amended flight punctuality regulations, optimized performance evaluation indicators, and formulated Flight Punctuality Evaluation Regulations (Version 2019), Rules for Identifying Causes of Unpunctual Flights, Remarks on Flight Punctuality Performance Evaluation in 2019, and other systems, creating an atmosphere of “all for flight punctuality”. With these efforts, we strive to achieve the overall goal of “a flight punctuality rate higher than the average level of civil aviation”.

We proactively respond to massive delays of flight. In 2019, we made yellow-level responseto 81 flight delays and orange-level response to 5 flight delays, and proactively responded to 22 typhoons. In the fight against “Typhoon Lekima”, we made two records—the first airline to take off from and land at Shanghai Hongqiao International Airport and Shanghai Pudong International Airport after the typhoon while ensuring flight safety. Meanwhile, we established the support platform for flight, aircraft maintenance, and dispatcher ground and air service to respond to air emergencies in a highly efficient way. Throughout the year, we operated 137 flights for assistance, realizing quick response to special aircircumstances.

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Informatization Measures to Improve Flight Punctuality

Key performance:

Case: “Flight integration” enables passengers to enjoy smoother flight.

As the fleet scale and the number of flights increasingly grow, China Eastern enhances information application ability, and optimizes resource allocation by its “Flight integration” program, which guarantees passengers’ smooth air travel. The program breaks the chunk fragmentation of pilot resources, optimizes the Crew Scheduling System (CECS), and contributes to a smarter and more efficient crew resources allocation system. As a result, it maximally prevents improper resource allocation such as “no crew for the flight” and “no flight for the crew”, and further improves flight punctuality.

7.2 Providing Heartwarming Service

Heartwarming service is an essential requirement for civil aviation, a service-oriented industry.

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It is also vital for building China into a strong civil aviation country in the new era. During the internationalization and massification process of civil aviation, airlines play a significant role in meeting people’s new needs for better air travel and promoting the high-quality industrial development. Recognizing this, China Eastern persists in providing heartwarming service for passengers to bring them pleasant travel experiences.

7.2.1 Service quality management

We step up efforts to improve service standards. In 2019, we released the newly amended version of the Service Manual, Standards for Premium Domestic Business Flight Service, Regulations on Advancing Organizational System for Service Quality Management in Branches and Subsidiaries, “Eastern Miles” Experience Card Management Regulations, and other service standard documents, which helped regulate and institutionalize our service standards. Meanwhile, we conducted inspections of service standards implementation through seasonal inspections, special investigations and surveys, etc. With the efforts, closed-loop management of service standards was achieved, covering formulation, implementation, review and institutionalization. We actively aligned with the latest policies on service management. In response to changes of related policies, such as Shanghai’s policy for garbage classification, the European Union’s privacy data protection directive—General Data Protection Regulation (GDPR), Canada’s policy for handling delayed flights, we considered the actual situation of cabin operation and timely developed specific standards and rules for onboard garbage classification, air-ground connectivity, delayed flights handling in North America and Canada. Moreover, we organized corresponding publicity activities and trainings to guarantee high-quality service.

Measures for Improving Service Quality Management

7.2.2 Listening to our customers

Upholding the vision of “Putting clients first with wholehearted service”, we conduct deep

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research on the industrial situation and customers’ needs, track the data of passengers’ satisfaction degree, and focus on whole-process passenger service encounters to intensify management of service chains, thus effectively improving passengers’ satisfaction degree. Moreover, we have intensified the capability building of our customer service centers with smart customer service program to improve our customer service response efficiency. In 2019, we completed the construction of five overseas hotline centers, enhancing the ability to better serve global customers.

Besides, our service quality inspection center and service inspector teams proactively handle customer complaints in a unified manner. With unified identify, call, standard, verification and promotion, the complaint handling process has been regulated and the complaint handling efficiency has been improved.

Chairman Liu Shaoyong conducts passenger research in Terminal 2 of Shanghai Hongqiao International Airport.

Key performance:

In 2019

Case: Responding to customer aspirations and optimizing aviation transport for large-piece musical instruments

In August 2019, a renowned musician was unsatisfied about China Eastern’s seat baggage

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transport policy. We paid great attention to the complaint. Through surveying the compilation basis of the existing standards and our safety regulations, and making a systematic analysis of the complaint on size standards of seat baggage, we found that several complaints were about the transport of large-piece musical instruments such as cellos, violins and Guzheng (Chinese zither). We invited Shanghai Symphony Orchestra to join our discussions on size standards of seat musical instrument. Moreover, we jointly tested the height limit and placement method of seat musical instruments at a simulated passenger cabin. With follow-up efforts, we actively optimized the service standard and process, and released the new version of service standard for seat musical instruments, winning extensive recognition from passengers.

China Eastern and Shanghai Symphony Orchestra discuss and test the transport standard and process for seat musical instruments.

Stakeholder Comment:

“The safety regulations work well as always. Both safety and improved service are indicators for high-level airlines. China Eastern has done a great job.”

— Netizen “Empty Plastic Bottle (cybername)”

“The airline puts passengers’ cellos in the cloak room. This solution aims to save the passengers from safety risks. This solution also shows China Eastern has paid great attention to the needs of small customer groups. China Eastern’s service is so considerate.”

— Netizen “Yu Quan Quan Er (cybername)”

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7.2.3 Diversified and quality service

China Eastern puts passengers’ safety in the first place. In implementing this principle, we provide customers with quality service by tracking passengers’ needs and aligning with the organizational model for large fleet, extensive marketing and a wide range of services.

Premium Express Route Service is a key measure of China Eastern to optimize air travel experience. The service improves the flight punctuality, the rate for using the boarding bridge, and the flight completion rate. In 2019, China Eastern launched the operation quality standards for eight premium domestic business flights and established the whole-process flight operation monitoring system. Through monitoring flight operation quality in a continuous, data-based and visualized way, flight guarantee units are facilitated to figure out how to provide better service and improve flight operation quality.

“Through Check-in” Flight is one of the most popular transfer models among passengers. It enables passengers to complete all flight procedures at the departure airport and check baggage through to the final destination, providing more convenience for passengers to transfer for connecting flights. In 2019, China Eastern conducted the “Through Check-in” flight program at Shanghai Pudong International Airport and provided passengers with the “one boarding pass and tag through check-in” service, effectively improving customer satisfaction of flight transfer.

To meet passengers’ diversified needs and provide targeted services, China Eastern took the lead to launch basic economy class and branded fare products and had built a brand new product fare system in China. The Company’s branded fare products include four sub-categories of economy class, as well as existing first class and business class products. These products vary in price, refund and rescheduling, upgrading class and free baggage allowance, which better meet passengers’ diversified needs.

In 2019, China Eastern issued the New Standards for Cabin Earphones, the Updated Standards for Onboard Catering (Version October 2019), Standards for Business Premier Passenger Service (Version 2019), New Rules for Cabin Sanitation, and other systems. Moreover, China Eastern

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optimized services in response to passengers’ concerns such as onboard catering standards, onboard earphones and cabin sanitary condition, enabling passengers to enjoy heartwarming cabin service.

Measures to Optimize Cabin Service

China Eastern offers “Children’s Day ” onboard catering for kids.

China Eastern continuously improves membership service to meet the need of modern air transport for membership service. We have launched the “Eastern Miles” new membership system improvement program, planning to innovatively build a value-added service ecosystem for our members by integrating system improvement, policy optimization, credit wallet function improvement, membership card-UnionPay binding service and other functions. In 2019, China Eastern had over 42 million flyer members.

7.2.4 Special passenger service

Special passenger service is indispensable to improving air travel service accessibility. China

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Eastern provides humanistic and customized service for different types of special passengers and enables them to enjoy air travel convenience and comfort.

In 2019, we amended relevant regulations on special passenger service and timely released them to advance the “Civil aviation service quality improvement” program. Moreover, we optimized special passenger service access standard and information transfer processes, and intensified qualification review and training for special passenger service teams, so as to continuously improve special passenger service ability and quality.

Case: Setting up a green transport channel for donated human organs to save lives

In recent years, the number of donated human organs has grown rapidly. According to the “Report on the Development of China’s Organ Transplantation (2015-2018)”, Chinese citizens donated 6,302 cases in 2018, ranking second in the world. Different organs have different blood-stream steal time limits. Thus, shortening transfer time is of critical importance to ensuring organ transplant quality and safety. Since 2016, we have made efforts to build a welldeveloped air transport service system for donated human organs. This move aims to build a green air transport channel for donated human organs and safeguard every “lifesaving” flight. We have not only become an important organ carrier, but also developed special transport services for Hematopoietic stem cells (HSCs) and portable oxygen concentrators, etc. to safeguard lives and deliver hope.

Milestones of China Eastern Air Transport Service System for Donated Human Organs

Case: Launching the first sign language app in China to provide hearing-handicapped

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passengers with targeted smart service

Communication has been a problem of hearing-handicapped passenger service. China Eastern actively explores innovative application of smart travel service for special passengers. After knowing passengers’ needs, we made evaluation of special passenger travel service environment and launched the first sign language app of airlines in China, providing a smart option for hearing-handicapped passengers.

At China Eastern love& care counters in Shanghai Hongqiao International Airport and Shanghai Pudong International Airport, personnel can communicate with hearing-handicapped passengers via the sign language app (equipped with simultaneous translation function).

7.3 Intelligent Travel Experience

The digital technology has profoundly altered people’s life and transport. It has inevitably promoted the civil aviation to go digital and grow more networked. Internetization is a focus area for the Company to transform into a modern air service integrator. China Eastern has made continuous efforts to enhance new technology application, build a brand new business model, and bring customers smarter, more convenient and comfortable travel experience.

7.3.1 The first airline in the world to launch the “5G+AI” integrated service system for smart travel

China Eastern has established the smart travel integrated service system at Beijing International Daxing Airport. With the latest technology of 5G and AI, the system provides three-dimensional smart services for passengers in the whole process of air travel, covering whole-process facial recognition services, whole-process information services, and whole-process luggage status tracking solutions. The system redefines the standards for smart,scenario-based and convenient air travel service, unleashing infinite possibilities of smart air travel.

Whole-process facial recognition services

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China Eastern launches the “facial recognition check-in machine” to save passengers from showing any ID credential to complete check-in procedure.

Whole-process information services

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China Eastern is the first airline in the world to apply new technologies such as

5G and AR glasses in civil aviation, which enables passengers’ smart travel.

Whole-process luggage status tracking solutions

7.3.2 Fly-Fi Fleet (In-flight WIFI)

China Eastern has completed the in-flight WIFI operation management project 2.0 upgrade. Through planning air portal reiteration, we step up efforts to upgrade the software and hardware of the entire fleet, further speed up internet surfing, and continuously optimize passengers’ internet experience to meet their need of data connection. As of December 2019, China Eastern had a Fly-Fi fleet of 93 aircraft, including wide-bodied planes. China Eastern continues to rank No. 1 in China and rank top among Asian airlines in terms of WIFI fleet scale, number of WIFI flights and number of in-flight WIFI users.

In 2019

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Number of Fly-Fi fleet of aircraft: 93

7.4 Customer Privacy Protection

With the development of mobile internet, airlines and their agents usually have massive passenger privacy information. Protecting customer privacy and information security is the responsibility that airlines and their agents must fulfill. To tackle risks in this regard, China Eastern enhances top-level design of passenger information protection system to fully promote the implementation.

In 2019, China Eastern published the Regulations of China Eastern on Passenger Information Protection. The Regulations clarify the applicable rules for passenger information classification, refine the specific requirements of passenger information handling, passenger information security impact evaluation and security incident response mechanism, and sort out the division of duties between data protection officers and data protection specialists.

China Eastern has established the Passenger Information Protection Committee and set up six standardized processes for passenger information protection. The processes cover the airline’s major scenarios of personal information handling, including data storage limits, rights of data subjects, data leakage reporting, sub-packaging management, data protection impact evaluation, and coordination with regulators.

The overseas direct sales payment channel of China Eastern received the highest level information security certification—Level 1 Certification for PCI-DSS (Payment Card Industry Data Security Standard) of global finance industry.

7.5 Advancing Global Connectivity

The flows of passengers, freight, capital and information carried by civil aviation have an innate internationalized attribute. Civil aviation is an important path for promoting talent communication, economy and trade exchange, and technology transfer. As China comprehensively deepens reform, enlarges opening up scale, and advances the Belt and Road Initiative, civil aviation has achieved a broader space for global cooperation. Moreover, the national goal of building China into a strong civil aviation country provides a clearer direction for the internationalized development of civil aviation industry. In 2019, China Eastern joined hands with global partners to further extend and improve the global route network.

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In 2019

China Eastern operated

137 routes along the Belt and Road

covering 40 cities in 18 countries

China Eastern operates the maiden flight of its first Airbus A350-900 aircraft in the 8th year of the route from Shanghai to Rome, building a cultural integration journey along the Belt and Road.

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China Eastern launches the non-stop long-haul route from Xi’an to Budapest.

Shanghai Airlines of China Eastern launches the non-stop long-haul route from Shanghai to Budapest.

China Eastern launches the non-stop long-haul route from Chengdu to Budapest.

8 Coordination · An Eco-friendly China Eastern

Coordination is the inherent requirement for high-quality development. The high systematicness and connectivity of aviation industry requires airlines to balance economic development, social justice, ecological environment, and focus on coordinated industrial development, and further contribute to a sustainable ecological chain of aviation industry.

8.1 Operating Low-carbon Flights

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Climate change across the globe is closely related to people’s production and living. The environmental impacts and costs incurred by carbon footprints of air travel are also pressing challenges for airlines. China Eastern actively uses informatized and marketized means to manage fuel conservation and emission reduction, and explores ways to improve fuel efficiency, providing greener air travel service for passengers.

China Eastern complies with national and local laws and regulations on energy conservation and environmental protection, and implements the national guideline for ecological civilization and the new requirements of green development of civil aviation in the new era. In 2019, we further improved the energy conservation and environmental protection system, and established the leading group and general office of energy conservation and environmental protection to coordinate the work.

Progress of Energy Conservation and Environmental Protection System in 2019

Carbon dioxide emissions of airlines mainly come from the use of aircraft fuel. In strict accordance with international and domestic regulations on carbon emission reduction of aviation industry, we enhance carbon emission evaluation and management in all links. In 2019, we formulated the Carbon Emission Data Regulations, continued to develop the carbon emission fuel monitoring system, prepared the civil aviation carbon dioxide emission monitoring scheme, and conducted systematic training for subsidiaries.

We took a series of measures on systematic data analyses to improve systematic management and further tap potentials of fuel conservation, including aircraft dispatch and route optimization,

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lean management of non-operation fuel consumption, optimization of the percentage of short-haul routes and flights, precision flight planning for controlling usable fuel upon landing, and special optimization programs, etc.

APU alternative:APU is a small power engine in the rear of the plane. Since the APU has a relatively high fuel consumption per power unit and a loud noise, it will cause air pollution to some extent. During airplane parking, the APU is closed and the ground aerobridge facility begins to power, which effectively reduces the plane’s energy consumption.

Measures and Effects of Energy Conservation and Emission Reduction in 2019 (Partial)

We continued to participate in local carbon trade in Shanghai, across the country and in EU. In 2019, we attended the 75^th International Air Transport Association (IATA) Annual General Meeting. On the event, we joined discussions on the drafted resolution of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and expressed our standpoint and needs as a representative of Chinese airlines.

Key performance:

In 2019

8.2 Safeguarding Lucid Waters and Blue Sky

Pollution prevention is one of the “three critical battles”, which was proposed at the 19^th CPC National Congress. While pursuing development, China Eastern implements the fundamental

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national policy of resources conservation and environment protection, actively shoulders the social responsibility of green development, and continues to prevent and control air pollution.

Following the guideline of “prevention first”, we have formulated the Regulations on Environmental Protection in accordance with Water Pollution Prevention and Control Law, Atmospheric Pollution Prevention and Control Law, the Work Plan on Implementing the “Three-year Action Plan to Win the Battle for a Blue Sky”, Regulations of Shanghai Municipality on Prevention and Control of Atmospheric Pollution and so on, to ensure responsible departments’ fulfillment of pollution prevention and control responsibility. In 2019, we released the Work Plan for Winning the Battle for a Blue Sky, completed the building of organizational structures and division of work at all levels, and focused on the implementation of the “Oil-to-Electricity” and APU programs to the implement the CAAC’s three year action plan to win the battle for a blue sky.

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In 2019

8.3 Sustainable Utilization of Resources

Increasing the sustainable utilization rate of resources such as energy and airplane offerings, and reducing the consumption of non-renewable resources are effective ways for airlines to improve their environmental performance and balance their short-term demands with long-term development. In compliance with the Environmental Protection Law, Circular Economy Promotion Law, Energy Conservation Law and other related laws and regulations, China Eastern pursues green development with the concept of resource saving and utilization. The Company has formulated the Regulations on Environmental Protection Management and the Regulations on Energy Measuring Management to improve its energy efficiency and promote the sustainable utilization of resources.

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Measures for Sustainable Utilization of Resources in 2019

Key performance:

Case: China Eastern base at BDIA—a landmark project for sustainability

The green, ecological and smart information indicators were incorporated in design phase and plenty of new eco-friendly materials and energy-saving equipment were applied during the construction of China Eastern base at BDIA. For example, renewable energy heating systems such as ground source heat pump system and roof mounted solar water heating system were applied, 713 charging stations were installed, and a roof area of 24,600 m² were covered with the distributed photovoltaic power generation system. The core working area, living service area, airplane catering area and ground service area of China Eastern base Phase I were awarded “Beijing Sample for Green and Safe Construction Site”; the core working area was awarded “National Green Construction Demonstration Project in Construction Industry”; the core working area Phase I, the living service area Phase I received the “three-star” design certification for green construction.

Case: Garbage sorting in cabin—three-color garbage bags help China Eastern sort 30 tons of airplane garbage per day

In July 2019, Shanghai released the Regulations on Domestic Waste Treatment, which set off a public craze for environmental protection. The route network of China Eastern connects over 100 destinations. Every day, more than 30 tons of domestic waste is discharged from flights that land at Shanghai Hongqiao International Airport and Shanghai Pudong International Airport.

Considering this, we have formulated the measures for sorting airplane garbage and distributed three-color garbage bags to the two airports in Shanghai. While ensuring normal flight service, the flight attendants complete garbage sorting in passenger cabin and during the return flight: they put leftovers into the black garbage bag, put empty bottles and empty paper cups into the transparent garbage bag, and put used cotton swabs/band aids and abandoned pesticide containers into the red garbage bag. Finally, the garbage is collected by passenger cabin cleaners.

We have also built and set up garbage sorting facilities, provided garbage sorting training and publicity, and continued to explore ways of garbage reduction, recycling and non-hazardous treatment.

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Besides, we actively hold publicity activities of energy conservation and environmental protection. Units at all levels, branches and subsidiaries are mobilized to hold diverse publicity activities to spread the concept of environmental protection, including “Energy Conservation Week” and “Blue Sky Battle”.

In April 2019, China Eastern released the public welfare video “Fly for Love” starred by Hu Ge and the green IP “Mus Green Initiative” to spread the green development initiative to the public. Starting from protecting bar-headed geese (Anser indicus), protecting the source of the Yangze River, and call on all humanity to care for and work on ecological civilization, we aim to protect lucid waters and lush mountains and share a harmonious ecology.

8.4    Sustainable Value Chain

Sustainable development is the common responsibility of all enterprises in the value chain, including China Eastern. With a farsighted vision, China Eastern has built fair and mutually beneficial cooperation relationships. While fulfilling its own responsibility, the Company passes on corporate experience to suppliers, distributors and other partners, and joins hands with them to fulfill duties and share development gains.

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China Eastern has incorporated the specific CSR requirements into supplier assessment system and management system, formulated and improved relevant regulations such as the Procurement Regulation of China Eastern and Detailed Rule for Procurement of China Eastern, and improved the strict access and assessment mechanism. Moreover, new suppliers are required to sign the Suppliers’ Letter of Commitment to Social Responsibility and Suppliers’ Letter of Commitment to Integrity to notify them of their obligations in respect of environmental protection, public welfare and labor protection.

China Eastern has also embedded the specific CSR requirements into supplier performance evaluation system as indicators. We award extra credits to suppliers who actively fulfill environmental and social responsibility and drive local development, and enhance cooperation with strategic suppliers for common development. In addition, we support the development of small and medium-sized suppliers and provide them with a cooperation platform and management experience while promoting the orderly and benign development of local suppliers. In 2019, we developed and launched the unified procurement platform, and established three working teams for compliance management, information management and unified procurement. Thus, our public disclosure of procurement information improves the efficiency and transparency of procurement, tendering and bidding.

Note: Regional division of China Eastern branches and subsidiaries

China Eastern has formulated and implemented the B2B Website E-ticket Sales Cooperation Agreement and the Passenger Transport Sales Agency Agreement with Domestic Airlines. Provisions on agencies’ responsibilities and duties and breach clause are explicitly written into the agreements. We forbid distributors to make bundle sales of China Eastern products, rigorously monitor agencies’ product authenticity and their performance on China Eastern’s pricing policies,

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and set up a special team to handle violations of agreement. In 2019, we formulated and released the Regulations and Operation Handbook of China Eastern on Travel Expenses Management Suppliers and the Regulations on Domestic BSP Agencies, in order to intensify and regulate distributor management, and conduct regular inspections.

Key performance:

In 2019

9 Sharing · A Happy China Eastern

Sharing is the ultimate goal of the high-quality development. Upholding the people-centric development vision, China Eastern comprehensively promotes targeted poverty alleviation, actively engages in community development, shares development gains with employees, and facilitates industrial development. These efforts have helped our people enjoy the gains of development and better met their aspirations for a better life.

9.1 Targeted Poverty Alleviation

Poverty elimination, improvement of people’s life and common prosperity are essential elements of the socialist world. “No poverty” is the first goal of the UN Sustainable Development Goals (SDGs). To help win the fight against poverty is the political responsibility and social responsibility of central state-owned enterprises (SOEs), and it is also a key task for enhancing their fulfillment. Central SOEs should give full play to their advantages in the industry, give back to society, and take the lead to fight against poverty.

In strict accordance with the Guiding Opinions of the General Office of the State Council on the Three-year Action Plan for Winning the Battle for a Blue Sky, China Eastern continues to conduct fixed-point poverty alleviation in Shuangjiang County and Cangyuan County, Lincang City, Yunnan Province. In 2019, China Eastern implemented the Implementation Opinions of China Eastern on Promoting Targeted Poverty Alleviation (2018-2020) and comprehensively advanced fixed-point poverty alleviation.

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Poverty Alleviation Performance in 2019

2019 年东航集团扶贫成效 Poverty Alleviation Performance in 2019

定点帮扶 Fixed-point poverty alleviation

临沧市双江县、沧源县提前摘帽 Supported Shuangjiang County and Cangyuan County in Yunnan Province to shake off poverty ahead of schedule

一年来，实际投入帮扶资金1,825.17 万元，引进帮扶资金253.26 万元，培养贫困县基层干部423 名，培训技术人员583 人次，完成消费扶贫（农副产品）近千万元。    Throughout the year, China Eastern invested RMB 18.2517 million in poverty alleviation, introduced RMB 2.5326 million of funds for poverty alleviation, cultivated 423 primary-level officials and 583 technicians in poverty-stricken counties, and helped sold agricultural by-products worth nearly RMB 10 million to promote poverty alleviation through consumption.

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牵线全球商业合作伙伴共同扶贫。Collaborated with global business partners to promote poverty alleviation.

涉及临沧、沧源航班4,839 架次；运输旅客47.86 万人次；航线带动GDP8.6 亿元；解决就业13,065 人    Operated 4,839 flights to/from Lincang and Cangyuan; transported 478,600 passengers; helped generate GDP of RMB 860 million via the routes; provided jobs for 13,065 people

放眼全国，东航航班飞跃68 个贫困地区机场及所辐射的贫困县 China Eastern flied across 68 airports in poor regions, which reached poverty-stricken counties.

党建引领，创新机制，带动贫困人口10,689 人，成立沧源残疾人产业扶贫 China Eastern helped lift 10,689 poor people out of poverty through Party building and mechanism innovation. Moreover, China Eastern established the Cangyuan Handicapped Industrial Poverty Alleviation Demonstration Base.

“ 援建、助学双投入” 办好东航双江宏志班：” 圆梦助学” 惠及5,500 名学生 Aid project construction and education support” for “China Eastern Shuangjiang Hongzhi Class” in Shuangjiang; the “Love from China Eastern” student assistance campaign has benefited 5,500 students.

安全饮用水 Safe drinking water

Invested RMB 8.779 million to assist the construction of Cangyuan Rural Drinking Water Project, benefiting 3,862 local people

对接上海医疗资源开展义诊带教，全年开展手术57 台，带教培训382 人次，义诊患者218 人    Cooperated with medical institutions in Shanghai to carry out free medical services and clinical teaching activities. Throughout the year, 57 surgeries were operated, 382 people were trained in clinical practice, and free diagnosis and treatment were provided for 218 people.

With the advantages of a state-owned airline, China Eastern bridges the mountainous areas with the country and even the world to support local economic development. We have launched flights from Kunming to Lincang and Cangyuan and optimized the route network, which shortens travel time to 50 minutes by air. In 2019, in response to local needs, we launched the Kunming-

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Cangyuan flight and the regular Lincang-Kunming-Shenzhen route. Our “Poverty-alleviation air routes” boosts local tourism and helps transport quality agricultural produce from poor areas to the outside world.

“China Eastern’s fights bound to Waxiang have brought us opportunities to go to the outside world and realize our dreams!”

Yang Haodong, Party Secretary of Lincang City

Talent cultivation: We organized trainings of industrial poverty alleviation for 65 third-tier officials and industrial entrepreneurs in Cangyuan County and Shuangjiang County

Consumption-driven poverty alleviation: We established the “Central SOEs+government+leading enterprises+cooperatives+farmer households” poverty alleviation mechanism in poverty-stricken areas, promoted consumption-driven poverty alleviation, and supported the development of local tea industry.

Industrial development: We coordinated with the Organization Department of local county Party committee to promote the establishment of the agricultural machinery cooperative in Nansong Village, Shuangjiang. Since the cooperative started operation, it has benefited 644 people from 160 registered poor households. Moreover, we cooperated with Shanghai Stock Exchange to carry out the Cangyuan rubber “futures+insurance” project and benefited 4,613 people from 1,155 rubber farming households (including 1,299 people from 334 registered poor households).

Chairman Liu Shaoyong and President of KLM Airlines Pieter Elbers visit the Cangyuan Handicapped Industrial Poverty Alleviation Demonstration Base—Barao National Costume Co., Ltd.

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In 2019, China Eastern continued to pair with Beijing Hongzhi Middle School to open the “China Eastern Shuangjiang Hongzhi Class” in Shuangjiang; the Company invested RMB 8.7 million in the construction of Shuangjiang County Middle School teaching building, and launched the “Love from China Eastern” student assistance campaign to help students from registered poor households by paired employee support. Moreover, the Company integrated social resources such as AJMIDE Communications and Shanxi Securities to carry out public welfare education activities in Cangyuan County and Shuangjiang County.

General Manager Li Yangmin attends the roofing ceremony of the teaching building of Shuangjiang County No.1 Middle School, one of the aid projects of China Eastern in Shuangjiang County.

Chairman Liu Shaoyong and foreign business partners such as KLM Airlines and Air Lease Corporation (ALC) implemented poverty alleviation activities in Cangyuan.

In 2019, China Eastern continued the supplementary medical insurance “Family Backbone Program” among people aged between 18 and 60 from registered poor households in Shuangjiang

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County and Cangyuan County, which directly benefited 47,421 impoverished people. Moreover, China Eastern cooperated with social institutions such as Xinhua Hospital affiliated to Shanghai Jiao Tong University of Medicine, Shanghai Public Health Clinical Center, and Shanghai Tenth People’s Hospital to carry out free medical services and clinical teaching activities in Cangyuan.

China Eastern cooperates with China Poverty-Alleviation Promotion of Volunteer Service to conduct the “Giving Sight to the Blind · Poverty Alleviation Program” in Cangyuan County and provide medical support for local impoverished people.

9.2 Diversity and Equal Opportunities

Diversity is critical to building a successful enterprise and creating a corporate culture full of vitality. It helps motivate the enterprise to innovate and improve efficiency. At China Eastern, a diversified staff group facilitates the Company to perceive global customers’ needs in a more individualized perspective. Ensuring equal opportunities is an important basis for China Eastern to achieve high-quality development and build a world-class airline.

In compliance with related national laws and regulations, China Eastern has formulated policies, regulations and plans that honor equality between different types of employees and groups, striving to provide equal opportunities of employment and development for all employees. We are committed to nurturing diverse and inclusive culture and building a workplace where employees with different backgrounds enjoy equal opportunities of development.

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Measures for Caring for Foreign Employees and Female Employees in 2019

Key performance:

Number of Minority Employees (2017-2019)

9.3 Working Conditions and Social Security

Good working conditions and well-developed social security helps enhance employees’ sense of belonging and motivate their creativity. A harmonious employment relationship contributes to social stability. For China Eastern, employees are the major force to drive high-quality development. Providing employees with competitive working conditions and social security and enabling them to enjoy the gains of development are not only the responsibility of China Eastern, but also a driving force to help the Company achieve high-quality development in a faster and better way.

China Eastern strictly follows the Labor Law, Labor Contract Law, Social Insurance Law, Employment Promotion Law, and other related laws and regulations, and ensures that our working conditions and social security align with national laws and regulations and international labor

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standards. Since 2011, we have signed relevant insurance agreements with insurance companies to provide pilots with customized occupational risk insurance. Since 2014, we have launched the enterprise annuity system and enabled employees to share the gains of our reform and development.

In 2019, China Eastern innovated in the employee service model and formulated the Implementation Plan for the “Happy China Eastern” Employee Wellbeing Credit Program (Trial). This move aims to help promote the program in a faster and better way so as to improve employee wellbeing and all-round development, and further enhance their sense of gains, belonging and happiness.

In 2019, the staff congress reviewed and approved the Collective Contracts of China Eastern and the Special Collective Contracts for Female Employees of China Eastern, which lays a foundation for employees’ rights protection and promotes the Company’s democratic management.

9, we optimized the working mechanism for rational suggestion and drafted the Implementation Methods for Rational Suggestion Work in the New Stage and the Regulations on Innovation Experts Database, etc. Moreover, we sped up developing the new rational suggestion system and improved the new rational suggestion process.

China Eastern Staff Service Center implements the working mechanism of “integrated work for onestop service”. In 2019, the staff service center provided services for 2.14 million people. In the satisfaction surveys, employee general satisfaction degree reached 100%, and great satisfaction degree reached 99%.

China Eastern pays close attention to employees’ psychological health. We develop more EAP service projects to provide professional psychological health guidance, training and consultation for employees and their immediate family.

The “Ten Tasks” of most interest to employees in 2019 were implemented according to schedule. On October 26, the No. 71 T2 bus line of Shanghai was officially launched. China Eastern financed the building of a bus stop for China Eastern employees, providing commute convenience for employees.

The Company cares for employees and organizes the caring activity for employees under the theme of “Warming you in winter, cooling you in summer” every year.

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Chairman of China Eastern and Li Yangmin, General Manager of China Eastern, connected with an on-duty

flight crew via the air-ground connectivity system to explain the prospects of China Eastern in Beijing and

express gratitude to China Eastern employees at Daxing Airport.

Case: China Eastern Unified Certificate Center provides one-stop certificate service for flight crew

China Eastern has established the unified certificate center to provide one-stop certificate service for flight crew, including review, application and management. A new flight crew member can obtain the certificate within 11 days instead of 20 days via the unified certificate center.

Key performance:

In 2019

9.4 Training and Development

Talents are the first primary resources and the core competitiveness of an enterprise. It is vital to highly valuing employees’ development in workplace and improving the training system for cultivating creative and productive talents, which underpins the enterprise’s core competitiveness. For China Eastern, creating a premium development environment to attract, retain and cultivate high-caliber talents is a foundation for building a world-class airline.

Based on China Eastern Airlines Technology R&D Center (China Eastern R&D Center), China Eastern continuously improves the multi-tiered and diverse education and training system. The “Swallow, Wing, Flying and Eagle” backup talents training system has been established and improved, laying a solid foundation for the Company’s high-quality development. Moreover, we try to set up diverse platforms for employee growth and create several development sequences to enable

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employees at different posts to have explicit promotion channels. In the meanwhile, we implement the open, just and fair competitive selection mechanism. Apart from vertical promotion in the same sequence, employees in different post sequences can also be promoted to other post sequences.

In 2019, China Eastern comprehensively amended the Training Management Manual and built the instructor capability assessment model with 5 tiers from primary level to expert level. We intensified internal training and developed 89 courses in in-flight service, ground service, air defense, operation control, and other majors. Meanwhile, we conducted post drills and skill competitions in different forms, covering in-flight service, ground service, flight courseware and information, etc.; the integrated learning platform was established with livestream class, voice recognition, courseware making platform and other functions, improving our information support for training. Moreover, we formulated the Regulations of China Eastern on Internal Transfer (Version 2019) to facilitate the rational allocation of human resources while meeting employee development.

Independently developing A350 and B787 aircraft curriculum; developing the courseware of Occupational Ethics of Pilots for the training of new pilots to further enhance pilots’ safety awareness

Measures for Flight Personnel Training

China Eastern has built the project management personnel training system, which covers the project management mechanism from primary level, intermediate level and to senior level. In 2019, we selected management personnel to participate in the Spark Program Lean Six Sigma (LSS) green belt training and selected project leaders and managers to attend the Rolls-Royce project management class in Singapore and in the UK. The management personnel also attended the Airbus management workshop. Through learning international operation experience from advanced enterprises such as Rolls-Royce and Airbus, our management personnel improved their international vision and management competency.

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To further enhance cabin managers’ comprehensive quality and build a cabin management personnel pool, the Cabin Department coordinates with China Eastern R&D Center to hold the cabin managers “A+” training course in the on-the-job training project.

The leadership project of China Eastern R&D Center aims to cultivate applied talents, improve the professionalism of management personnel and key position personnel, and fill the gap of China Eastern and external markets in applied management training.

The Ground Service Department and China Eastern R&D Center jointly launch the ground service instructor capability enhancement camp on the theme of “Cultivating golden instructors with premium courses” to effectively improve the teaching and research capability of the ground service training team.

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The China Eastern flight attendant Wu Jia’ni ranked 9th and received the Medallion for Excellence in catering service in the 45th WorldSkills Competition. She ranked 2nd among Asian contestants, the highest rank of Chinese contestants in this item.

Key performance:

In 2019

9.5    Guaranteeing Special Air Transport

Civil aviation is an indispensable part of the public transport system and the contingency relief system. Guaranteeing major air transport tasks is one of the important duties of civil aviation. As a large state-owned airline, China Eastern relies on its transport experience and outstanding comprehensive strength to guarantee major air transport tasks. Meanwhile, active engagement in major air transport tasks improves our internal and external coordination as well as service innovation ability.

China Eastern has established the China Eastern leading group of national defense, contingency and major transport management to coordinate special flight management. In 2019, we made efforts to improve the contingency system and contingency relief ability.

In 2019, China Eastern successfully guaranteed air transport service for major events such as the “Two Sessions”, the 2^nd Belt and Road Forum for International Coopeartion, the 7th CISM

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Military World Games, the 70th anniversary of the founding of the People’s Republic of China, and the 2nd China International Import Expo.

In 2019, China Eastern actively fulfilled the responsibility of guaranteeing aviation support for national defense mobilization and coordinated with the Ministry of Public Security in “Great Wall Action” to transport telecom fraud suspects”, manifesting the fulfillment as a central SOE.

China Eastern operates the special flight to support the “Great Wall Action” of the Ministry of Public Security.

After the earthquake hit Manila, the Philippines, China Eastern sent flights to fetch 192 Chinese travelers stranded in Manila.

Key performance:

In 2019

9.6 Engaging in Local Communities

The place where a company operates its business provides support for its development, and the business operation also has impacts on local communities. A company’s community engagement helps improve the local wellbeing and wins support from the community. With the growing route network, China Eastern has expanded its engagement in more communities for their better development, which is also a responsibility of China Eastern and the requisite for winning community support.

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9.6.1 Carrying out volunteer services

Based on “Love from China Eastern” volunteer projects, the characteristics of the industry and the needs of communities, China Eastern carries out diversified projects to facilitate the development of local communities. We have successively released the “Love from China Eastern” Volunteer Activity Management, Administrative Measures for Applying for “Love from China Eastern” Volunteer Project, and Regulations on “Love from China Eastern” Registered Volunteers to promote the standardized management of volunteer activities. With years of efforts, the “Love from China Eastern” volunteer activities have covered 18 sub-categories in five categories, including community service, poverty alleviation and student subsidy, public welfare, transport service, and air transport for major natural disasters and national emergencies.

Case: Joining hands with partners to help takeaway delivery drivers back home during the Spring Festival

Due to work shifts, high transport expense and other causes, many migrant workers cannot go back home during the Spring Festival. Takeaway delivery drivers are typical representatives of the group. In order to help takeaway delivery drivers go back home during the Spring Festival, China Eastern cooperated with Credit Fly and Meituan Takeout to launch the Spring Festival Mileage Program. After Credit Fly users visit the Mileage Mini-Program and check their flight miles in the past three years, they can get some Credit Fly mileage coins, which can be changed for a free flight ticket. Every 150,000 mileage coins can exchange for a flight ticket of China Eastern for Meituan takeaway delivery drivers. A total of 19,704 people participated in the program; 9,907,000 mileage coins were collected for 66 free flight tickets one week in advance.

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China Eastern cooperates with Delta Air Lines and Shanghai Qingcongquan Training Center for children with Special Needs to hold the “Love from China Eastern - Encounter with Stars” public welfare activity to care for autistic children.

China Eastern cooperates with One Foundation and Youkai Caring Association to organize left-behind children in Tai’erzhuang to join the seven-day study tour in Shanghai.

Key performance:

In 2019

9.6.2 Promoting regional economic development

Civil aviation plays a significant role in driving regional development. On the one hand, it

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expands the upstream and downstream industrial chains and helps achieve industrial clusters and coordinated development; on the other hand, it promotes the development of regional business and trade, tourism, logistics and culture. Based on the developed route network, China Eastern provides strong support for regional economic development.

Case: Building the “Bridge in the air” between the mainland and Macao

The year 2019 marked the 20th anniversary of Macao’s return to China. Macao has closer contacts with the mainland in economy, culture and social aspects. For years, China Eastern has continuously expanded the route network between the mainland and Macao and further developed the aviation market in Macao. We have become the airline from the mainland that owns the largest transport capacity in Macao. During the recent decade, China Eastern has operated over 22,000 flights to transport over 2.66 million passengers via the Macao routes. We have built a “bridge in the air” for economic, trade and cultural exchanges between the mainland and Macao, providing strong support for Macao to be a pillar in the development of the Guangdong-Hong Kong-Macao Greater Bay Area.

China Eastern signs the memorandum of cooperation with the local government of Tibetan Autonomous Prefecture of Golog, Qinghai, to provide more support, expand and optimize the route network, and serve local economic and social development in a better and faster way.    

All trainees of the 2nd edition of the Belt and Road National Media Elites Workshop, which was organized by China Daily and attended by China Eastern, visit the Company.

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Nearly 200 renowned entrepreneurs and guests who attended the Tsinghua Yangtze Delta Forum conduct a field tour at the “Home of China Eastern”.

The finals of the International Table Tennis Federation (ITTF) T2 Diamond 2019 was held in Singapore. China Eastern was the only airline partner of the event.

The trainees of the Workshop for SOEs’ Senior Executives from Developing Countries, which was organized by the Ministry of Commerce and co-hosted by the International Business Officials Workshop Base of Shanghai Business School, visit China Eastern and made exchanges.

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China Eastern signs the strategic cooperation framework agreement with Shanghai Municipal Administration of Culture and Tourism to facilitate Shanghai culture and tourism brands to “fly across the globe”.

9.7 Contributing to Industrial Development

The robust development of enterprises helps create a harmonious and thriving industrial ecology while a benign industrial ecology promotes the long-term development of enterprises. As a world-class airline, China Eastern is obliged to cooperate with industrial chain partners and stakeholders to share resources, draw on each other’s strengths and accomplish mutual benefits, contributing to the high-quality development of aviation industry of China and even the world.

Upholding the vision for embracing openness and cooperation for mutual benefits, China Eastern has joined hands with domestic and foreign peers in the industry to enhance exchange and cooperation in talents, technology, service and other areas. Moreover, efforts are increased to conduct strategic cooperation with outstanding peers, jointly drive the sustainable development of aviation industrial chain, ecological chain, and value chain.

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China Eastern’s Engagement in Industrial Associations (partial)

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