China Eastern Airlines merges budget subsidiary OTT Airlines
China Eastern Airlines announced on Sept 20 that it has officially absorbed its wholly-owned subsidiary, OTT Airlines, effective Sept 22, to optimize operations and enhance efficiency within the airline group.
Under the merger, all flights previously operated by OTT Airlines are now transitioned to China Eastern Airlines, with no alterations to flight numbers, dates, times, cabin classes, fares, or passenger services. This transition ensures a smooth experience for passengers traveling on routes previously serviced by OTT Airlines.
Passengers having purchased tickets with OTT Airlines before Sept 21 are entitled to either a one-time free flight change within three days of their original itinerary or a full refund.
Established in 2020, OTT Airlines operated a fleet of 24 ARJ21 aircraft, all of which were domestically produced regional jets. As of June 30, OTT Airlines reported net assets of negative 89 million yuan ($12.66 million) and a net loss of 273 million yuan for the first half of the year.
China Eastern Airlines emphasized that the merger, initially announced on Aug 30, is part of a strategic effort to streamline management, reduce costs, and integrate the ARJ21 fleet into its broader operations, enhancing operational synergies within the group.
Source: Shanghai Observer