26 Mar 2026
#4 March 2026: China Aviation Industry Newsletter
Air China Plans Return to Pyongyang Services
Air China is set to resume direct flights between Beijing and Pyongyang from 30 March 2026. The airline will operate a weekly service using Boeing 737-700 aircraft, marking a gradual restoration of connectivity to North Korea after a prolonged suspension of services.
BOC Aviation Secures $2 Billion Club Loan
BOC Aviation signed a $2 billion self-arranged club loan with 19 global banks, comprising a mix of five-year term loans, revolving credit facilities, and a seven-year unsecured tranche. The funding will be used for working capital, capital expenditure, and refinancing, strengthening the company’s liquidity position and supporting continued portfolio growth.
EcoCeres Launches SAF Pilot Programme in China
EcoCeres, in partnership with key Chinese aviation stakeholders including CASRI, CNAF, China Southern Airlines and Air China Cargo, launched a sustainable aviation fuel (SAF) pilot programme under “Project Spark.” The initiative establishes a closed-loop SAF value chain, with fuel produced from waste and residue feedstocks delivering up to 90% lifecycle emissions reduction compared to conventional jet fuel.
Singapore Airlines to Launch Hangzhou Service
Singapore Airlines announced the launch of daily flights between Singapore and Hangzhou from 1 June 2026, subject to regulatory approvals. The service will be operated using Airbus A350-900 aircraft and is expected to strengthen connectivity between Singapore and one of China’s key commercial and technology hubs.
Acumen’s Take
On Air China’s Pyongyang Return
The resumption of flights to Pyongyang signals a cautious reopening of previously restricted air corridors. Such routes, while niche, can carry strategic and diplomatic significance beyond pure commercial demand.
On BOC Aviation’s Funding Strategy
The launch of a coordinated SAF ecosystem highlights China’s intent to accelerate sustainable aviation initiatives. Scaling production and policy support will be critical to making SAF commercially viable at scale.
On China’s SAF Momentum
The launch of a coordinated SAF ecosystem highlights China’s intent to accelerate sustainable aviation initiatives. Scaling production and policy support will be critical to making SAF commercially viable at scale.
On Singapore Airlines’ Hangzhou Expansion
The addition of Hangzhou reinforces the importance of secondary Chinese cities in global airline network strategies. Demand from both business and leisure segments continues to drive expansion into high-growth regional hubs.
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