12 Jun 2025
#2 June 2025: China Aviation Industry Newsletter
Air China and Emirates Sign MoU Aiming to Enhance Ties
Emirates and Air China have signed a Memorandum of Understanding (MoU) to establish a strategic framework for expanding their existing reciprocal interline cooperation. Under the MOU, Emirates and Air China will explore a reciprocal codeshare on select routes across each other’s networks. This would allow each airline to place its code on the other’s flights on China-UAE trunk routes as well as beyond Beijing and Dubai to an expanded list of points. Emirates and Air China will also develop a framework for cooperation across cargo operations and respective frequent flyer loyalty programmes, enhancing their value proposition for both travellers and businesses.
Emirates’ Deputy President and Chief Commercial Officer Adnan Kazim said, “Our partnership with Air China commenced 26 years ago (July 1999), and since 2018, approximately 18,000 Emirates customers have benefited from the expanded connectivity offered through our interline agreement. Building on this success, we've recently announced the launch of two new Chinese cities—Shenzhen and Hangzhou—which will strengthen our East Asia operations. Shenzhen will feature our best-in-class products, including our brand-new Premium Economy cabin. As we continue expanding our investments in the Chinese mainland, we look forward to deepening our partnership with Air China to meet growing travel demand in this strategic market and create new pathways for travel and trade between China and the global community."
HAECO Expands Boeing 737 Landing Gear Support with China Airlines Partnership
HAECO has entered into a new agreement with Taiwan’s China Airlines to provide landing gear services for the airline’s Boeing 737-800 fleet. The maintenance work, scheduled to take place from 2025 to 2027, will be conducted at HAECO’s specialised landing gear facility in Xiamen and will cover seven aircraft.
This latest collaboration strengthens the long-standing partnership between the two companies and extends HAECO’s support across China Airlines’ entire Boeing fleet. The expanded scope now includes both narrow-body and wide-body aircraft, such as the Boeing 737, 747, and 777. Since 2014, HAECO has supported the airline with overhaul and exchange services for its 747-400 freighters and landing gear maintenance for its 777-300ER aircraft.
Vietnam Airlines and China Southern Airlines enter a Joint Venture
Vietnam Airlines and China Southern Airlines have launched their joint venture (JV) following approvals from the relevant authorities, with the partnership set to take effect on 1st August. This marks the first JV between a Chinese airline and a Vietnamese airline, setting a precedent for future bilateral aviation agreements. By combining strengths and resources, the JV aims to offer a stronger combined network and seamless connectivity for passengers flying between Vietnam and China through schedule coordination and code-share arrangements.
China Southern Airlines Deputy Director General of Commercial Steering Committee, Mr. Zhang Dongsheng, said, “In recent years, China Southern Airlines has actively tapped into the aviation markets in countries along the Belt and Road through international bilateral cooperation, establishing a global network of international partnerships. The joint venture with Vietnam Airlines marks a significant step forward in our internationalisation strategy. We will build an air bridge between the Guangdong-Hong Kong-Macao Greater Bay Area and Vietnam to facilitate the high-quality alignment of China’s Belt and Road Initiative with Vietnam’s ‘Two Corridors and One Economic Circle’ plan, boosting regional economic, trade and cultural exchanges.”
Acumen’s Take
On Air China and Emirates MoU
The MoU between Emirates and Air China reflects a shift toward deeper strategic alignment between major Middle Eastern and Chinese carriers. By expanding beyond interline cooperation to include codeshare, cargo, and loyalty programme integration, both airlines are positioning to capture the rising demand on UAE-China corridors. Emirates’ addition of Shenzhen and Hangzhou reinforces its commitment to Chinese secondary cities, making this partnership a logical next step in network synergy.
On HAECO–China Airlines 737 Landing Gear Agreement:
HAECO’s expanded contract demonstrates growing demand for comprehensive MRO support across mixed fleets. The inclusion of China Airlines’ 737s alongside its widebody aircraft signals a maturing relationship, where airlines increasingly seek continuity, cost-efficiency, and scale from a single MRO provider. Xiamen’s role as a specialist hub further strengthens HAECO’s regional position.
On Vietnam Airlines–China Southern Joint Venture
This JV represents a major milestone in China–Vietnam aviation ties and sets a precedent for future intra-Asian airline partnerships. By aligning under a shared commercial framework, Vietnam Airlines and China Southern can optimise network planning, expand frequency without oversupply, and streamline operations. The JV is also a soft power tool—supporting China’s Belt and Road ambitions while dovetailing with Vietnam’s regional development goals.
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