China Eastern Airlines Announces Plans to Increase Melbourne’s Visitor Capacity with 100,000 Additional Seats Each Year
The decision follows Qantas’ announcement of the suspension of its Sydney to Shanghai route starting from July 28, attributing it to low demand.
The Victorian Labor government has reached an agreement with China Eastern Airlines to enhance the flights from Shanghai to Melbourne, aiming to improve connectivity between the two cities.
This development comes in response to Qantas’ decision to halt its Sydney to Shanghai route from July 28 due to lower-than-expected demand.
On June 7, the Allan government revealed that China Eastern Airlines will add additional non-stop flights from Shanghai Pudong International Airport and introduce new flights from Nanjing Lukou International Airport in July.
Nanjing, the capital of Jiangsu Province, has had a sister-state relationship with Victoria since 1979 under former Premier Rupert Hamer.
China Eastern Airlines, a major state-owned airline in China, is majority-owned by the Chinese government.
The new flights are projected to offer an extra 100,000 seats for Chinese visitors annually and provide around 3,650 tonnes of additional air freight export capacity each year.
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On June 7, the Victorian government announced that the new flights would create over 1,180 jobs and contribute $205 million annually to the state’s economy.
Meanwhile, Jim Young, General Manager of Marketing & Sales Oceania at China Eastern Airlines, anticipated that this move would significantly contribute to the airline’s growth and stability in the Australian, particularly Victorian, market.
“This is a significant milestone for us,” he added.
China Eastern Airlines has also partnered with Etihad Airways to enhance routes between the UAE and China starting in early 2025. This marks the first collaboration between commercial airlines in the Middle East and China.
Declining Demand For Australia-China Flights
This expansion comes shortly after Qantas terminated its direct flights from Sydney to Shanghai, citing that flights to and from China were operating at only half capacity, according to Cam Walle, the company’s International CEO.
“Since the onset of COVID, the demand for travel between Australia and China has not rebounded as expected,” he acknowledged.
“At times, our Shanghai flights have been operating at around 50% capacity,” he noted.
Passengers can still reach Shanghai and other Chinese destinations via Qantas flights to Hong Kong, with onward connections through partner airlines.
The final direct flight from Sydney to China’s financial center will be replaced by a new international route linking Brisbane and Manila, running four days a week.
According to Tourism Australia data, the number of Chinese flights to Australia has decreased by 30% compared to pre-pandemic levels as of August 2023.
Meanwhile, Southeast Asia has emerged as a preferred destination for price-conscious Chinese travelers due to its affordability and proximity to home.
