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OTT Airlines, China Eastern's Odd New Subsidiary

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China Eastern has today revealed details about a new subsidiary they're launching. We knew this was coming, though the whole concept has to make you wonder. Historically China Eastern has exclusively operated Airbus and Boeing planes, though later this year they'll take delivery of their first-ever plane from Comac, an Aerospace company owned by the…

Continue reading: OTT Airlines, China Eastern’s Odd New Subsidiary

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26 Replies
(@pstm91)
Joined: 5 years ago

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Posts: 801

Cue the follow up blog within the next 2 weeks that OTT had been delayed due to economic conditions from Coronavirus.


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(@tccquest)
Joined: 5 years ago

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Posts: 0

Interesting name for the airline. In Chinese 1, 2 ,3 is Yi1, Er4, San1. Or in the OTT style --> YES.


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Gold
(@mkldh)
Joined: 5 years ago

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It's not so hard to understand. Nobody really knows how stable and safe the Comac planes are at this stage, so operating them under a different brand name can prevent the backlash against MU's reputation to a certain extent if something terrible indeed happens. More of a marketing approach I guess.


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 Flu
(@Flu)
Joined: 10 years ago

Posts: 17

Another reason can be to pay the crew operating COMAC planes on a different scale than other MU aircraft and save on crew costs.


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 Tony
(@Tony)
Joined: 10 years ago

Posts: 137

I think the logic is driven by economics. Tickets on the new planes would have to be priced at a low enough level, at least until the planes have proven their reliability, to attract passengers, without affecting MU's overall business and profitability.


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 RF
Diamond
(@rf)
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Posts: 595

OTT: On Third Thought, I still don't want to fly this airline.


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Gold
(@terence)
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Have you reached out to Ed's office? #OurFutureOurFight


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(@zenat35k)
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So in China there is an perception, whether justified or not, that western products are always better. It seems that they are trying to prevent a back lash from a section of their customers who are not so adventurous and wanna see how it goes. That being said I also know Chinese people who are looking forward to trying this new “Made in China” plane. Just thoughts from a Chinese person.


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(@michael-han)
Joined: 5 years ago

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China Eastern already had a low cost airline called China United Airlines. They have a interesting strategy in that they operate to a lot of smaller cities/airports that is exclusively served by CUA, including their original base in Beijing Nanyuan (NAY), which has closed after the opening of PKX.

Aside from COMAC planes, I believe OTT is also suppose to take over China Eastern's business jet portfolio according to some Chinese sources that I have read.


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(@jkjkjk)
Joined: 8 years ago

Posts: 248

Death on US made aircraft in 2018-2019: 346 souls over 2 billions passengers carried (4.3 total with ~50% by boeing)
Death on US conventional railroad since 2012: over 30 souls
Death on US HSR (brightline since 2017): 41 souls

Death on Chinese HSR: 40 out of 7 billions passenger carried in the last decade

I look forward to a safe, large and cheap chinese plane.


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(@John D.)
Joined: 7 years ago

Posts: 10

@jkjkjk - So you are blaming US made trains for the deaths on Brightline? Where the trains defictive (which are made in California by a German company)? No, I don't think so. All of the deaths have been people who walked around crossing gates when they were down. How in the heck is that the fault of the train equipment? I have never seen a train deliberately try to run someone over.

Oh and Brightline is hardly high speed rail.


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(@RobPHX)
Joined: 11 years ago

Posts: 64

note that a number of US and European manufacturers are supplying content to the C919 program.


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 JMM
(@JMM)
Joined: 7 years ago

Posts: 26

Good to know which carrier to avoid. When the first plane crashes, expect the government to bury the wreckage within days because of "security concerns."


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(@alex_m)
Joined: 5 years ago

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As a wholy owned subsidiary like Shanghai airlines. Can we continue to earn miles on programs such as flying blue? Assuming ticket is not booked under MU code.


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(@Ethan)
Joined: 8 years ago

Posts: 315

When searching their names, the worst single plane accident history is in the 5th rank of the results.
God bless their choice of names /s
Also, C919 won't be flying soon anyway. Marketing ploy more than anything


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(@Big G)
Joined: 10 years ago

Posts: 68

These pieces of crap will also be forced onto African and South American countries who were stupid enough to join in on the Belt and road initiative. Uncle Xi will have the state make the loans to the states who will then purchase these and go further in debt. 2 birds 1 stone. Further enslaving poor states to extract and pillage their natural resources and at the same time prop up state owned enterprise . Oh and good propaganda at home for the lemmings to show the triumph of the command economy.


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(@Christopher Smith)
Joined: 8 years ago

Posts: 26

To be fair, I believe that offering an "incomparable flight experience" is entirely believable.


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(@yourcommiedad)
Joined: 7 years ago

Posts: 1

@Big G "further enslaving poor states to extract and pillage their natural resources "

Looks like You fully understand why you can enjoy Guatemalan bananas like a monkey in the US Of A


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 John
(@John)
Joined: 9 years ago

Posts: 1034

An acronym that just begs for interpretation. OTT: Oh, There's Trouble

A pity @Sean M is not here. He loves his acronym gobbledygook!


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(@experienced-traveller)
Joined: 5 years ago

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Posts: 201

It is Chinese Government policy that Chinese companies should support Chinese products , so YES ,these planes will be forced on the Chinese airlines.


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 jack
(@jack)
Joined: 9 years ago

Posts: 28

I'd rather fly the Max every time I had to fly than fly a Chinese or Russian Built plane.

Historically no Airlines outside of the USSR, Cuba, North Korea or China have used them. Which says a lot to me.


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(@bigjinla)
Joined: 5 years ago

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Posts: 541

@jack Interjet in Mexico operated some SSJ100s. I think they're mostly grounded at MEX at the moment, but they were flying fairly recently, even on US routes.


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(@Liam S)
Joined: 7 years ago

Posts: 1

As a chinese I think i can give a sense of what the new 1-2-3 aka OTT airlines means.

The name literally translates into one-two-three, but dont take those words literally.

It came from ancient chinese philosophy of taoism from the book of 'Tao Te Ching' by one of the greatest Chinese philosopher Lao-Tzu. The full quote goes as 'taoism is unique, which makes the two of yin and yang, and as yin and yang reach the balance of harmony then everything is born out of it.'

One here means the unique one, referring to taoism itself;
Two here means the two chi of yin and yang;
Three here means the anything that is made by yin and yang;

In a nutshell, the name carries the ancient Chinese philosophy of believing everything in the universe is at its best when harmony and balance is reached.

Also I believe the thought behind of putting C919 under a sub brand is more from a corporate and business perspective, and even as a Chinese myself who is proud of our own aircraft taking off in the sky I would have to say that C919 is no where near being a competitor of A320/B737 anytime soon, for instance that both airbus and boeing has massively applied composite on their aircrafts and C919 is still fully metal, which is a considerably less economical choice.


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(@VT-CIE)
Joined: 7 years ago

Posts: 66

The name reminds me of One-Two-Go Airlines in Thailand, a subsidiary of Orient Thai Airlines, which had a fatal crash in 2007. The aircraft was registered HS-OMG, no less!


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(@mark-b)
Joined: 5 years ago

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Posts: 0

The C919 is a rehashed DC-9 literally using old MD machinery that is decades old. There are so many questions hanging over this aircraft that I wouldn’t fly in one for all the coronavirus vaccine in China (if it existed). China doesn’t have an established successful commercial airliner industry aside from the Boeing and Airbus assembly plants. It’s approach to everything from manufacturing to the theft of intellectual property to ridiculous land and sea claims to its handling of a pandemic is exposing it as the paper tiger it is. For all that’s wrong with America, and there’s much, it’s innovative, industrious and hard working. Boeing will fix the 737 Max issues, China will paste over the deadly issues with its faux new C919. Each approach reflects the heart of each nation.


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(@Alex Stave)
Joined: 7 years ago

Posts: 1

The logic is very simple.
1. It allows OTT to secure air worthy certification from Chinese authorities for (1) the ARJ21 (2) the C919 and eventually (3) the C929. Sometimes a cigar is simply just a cigar!
2. Putting the ARJ21 and C919 into service allow China to demonstrate the safety and reliability of the planes to both customers and potential customers. Shorten product acceptance process.
3. Allows OTT to set up the required and necessary logistic and maintenance facilities.
4. Allows OTT to set up training facilities first for own staff, later for customers.
Brilliant!!!!


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