10 Jul 2025
#2 July 2025: China Aviation Industry Newsletter
Cathay Pacific and Sinopec Partner to Expand SAF Use in Hong Kong
Cathay Pacific has signed a new agreement with China Petroleum & Chemical Corporation (Sinopec) to begin refuelling select flights at Hong Kong International Airport with sustainable aviation fuel (SAF) produced and blended by Sinopec. This initiative underscores the increasing role of Mainland China-produced SAF in global aviation decarbonisation. The partnership follows Cathay Pacific’s earlier SAF supply agreement with SK Energy in South Korea, running from 2025 to 2027. Cathay also reiterated its support for advancing SAF adoption in Hong Kong through policy advocacy, positioning the airport as a global sustainability leader.
China Eastern Airlines Expands Direct Connectivity Between China and Italy
China Eastern Airlines (CEA) has launched a new direct route between Milan and Shanghai, adding to its growing network of five China–Italy services. The carrier now operates routes linking Rome, Milan, and Venice to Shanghai; Milan to Xi’an; and Rome to Wenzhou, resulting in 46 two-way weekly flights. Speaking at a promotional event in Milan on 3 July 2025, CEA Chairman Wang Zhiqing called the new route a symbol of deepening ties and mutual aspirations between China and Italy. The expansion forms part of CEA’s broader “Air Silk Road” vision, strengthening trade, culture, and tourism links between the two nations.
EHang and Reignwood Aviation Forge Strategic Partnership for Low-Altitude Aviation
Urban air mobility pioneer EHang has entered into a strategic partnership with Reignwood Aviation Group, aimed at accelerating the deployment of eVTOL aircraft in China’s emerging low-altitude economy. The agreement will support integration between traditional general aviation and new-generation eVTOL solutions, starting with tourism-focused operations using EHang’s EH216-S platform. The partnership intends to create scalable urban air mobility (UAM) models in China and later expand into Southeast Asia and other international markets. Reignwood brings expertise in airport infrastructure and aviation operations to the alliance.
Acumen’s Take
On Cathay Pacific’s SAF Partnership with Sinopec:
This partnership signals growing maturity in China's domestic SAF production capabilities and highlights Hong Kong’s ambition to lead in aviation decarbonisation. With strategic fuel supply agreements now spanning both China and South Korea, Cathay Pacific is positioning itself as a regional front-runner in sustainable flight operations.
On China Eastern’s Milan–Shanghai Route Expansion:
China Eastern’s enhanced connectivity with Italy not only reflects strong post-pandemic recovery in long-haul travel but also underpins China’s broader “Air Silk Road” strategy. These new routes offer significant growth potential in cargo, business travel, and inbound tourism for both regions.
On EHang–Reignwood Partnership:
This collaboration reflects China’s policy-driven emphasis on building a scalable low-altitude economy. By integrating conventional aviation with emerging eVTOL applications, the partnership offers a blueprint for regional UAM deployment, starting with tourism and eventually scaling to broader urban transport ecosystems.
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