China Eastern Airlines is to merge its OTT Airlines subsidiary into mainline operations, marking an end to the low-cost operator’s short-lived stint.
The merger, which was approved by China Eastern’s board on 30 August, will “further optimise the company’s management structure… improve management efficiency [and] reduce management costs”.
The SkyTeam carrier adds that the merger will also help “integrate” the Comac ARJ21 into the mainline fleet. OTT Airlines is a key operator of the ARJ21, with 24 examples in service.
“The merger reflects [China Eastern’s] emphasis to operate domestically produced civil aircraft,” states the airline, which is the launch customer for Comac’s C919 narrowbody.
China Eastern says the merger is not likely to impact its financial results, given that OTT Airlines is a wholly owned unit whose financial statements are already included in its consolidated results.
OTT Airlines – short for ‘One Two Three Airlines’ – launched in 2020 with the aim of operating Chinese-made aircraft. It is based at Shanghai’s Hongqiao airport and received its first ARJ21 in June 2020.
