Reducing Chinese Airlines’ Fair Value Estimates on Slower Recovery Expectation

Based in Shanghai, China Eastern has more than 40% market share in the most important air hub in eastern China. It owns the largest time slot shares in both Shanghai Hongqiao International Airport and Shanghai Pudong International Airport. China Eastern follows a hub network strategy. Besides Shanghai, it has also established a strong presence in Beijing, Kunming, and Xi’an, covering the northern, southwest, and northwest China markets, respectively.