The capacity of China Eastern Airlines is expected to increase at around 8%-10% annually during the "12th Five-Year Plan" period. The capacity increase in 2012 will mainly depend on introduction of single-channel aircraft, which will be deployed at hubs in Shanghai, Beijing Nanyuan, Xi'an and Kunming, according to a senior official of China Eastern.

China Eastern Airlines general manager Ma Xulun disclosed at the China Civil Aviation Development Forum that during the "12th Five-Year" period, the airline's capacity is expected to grow at 8%-10% annually. In 2012, the capacity increase is mainly due to introduction of single-channel aircraft, which will be put into the use at hubs in Shanghai, Beijing Nanyuan, Xi'an and Kunming.

Ma Xulun told reporters other than continuing to consolidate its Shanghai base, China Eastern will also focus on building Xi'an and Kunming as its regional hubs, as well as using China United Airlines to expand the Beijing market.

China Eastern Airlines Northwest Branch will add 6-8 aircraft this year and strive to open more routes to build three "waves" of flights by taking advantage of Xi'an International Airport expansion. As new Kunming Airport will also be put into operation by the end of June, China Eastern Yunnan Airlines -- a joint venture created by China Eastern and Yunnan government -- will create four "waves" of flights, according to Ma.

In addition, Ma said the company has been accelerating the integration of Beijing Nanyuan-based China United Airlines and China Eastern Hebei Branch. The integration is expected to complete by the end of June. The two companies will have unified market, services and strategies, so as to promote the development of China United Airlines.

While expanding core markets, China Eastern is also adjusting the fleet structure. Ma said there were more than 20 different models in China Eastern's fleet two years ago. They have been tried to phase out and retire old aircraft to simplify their fleet in recent years. By the end of 2015, the fleet is expected to be reduced to about 10 models, thereby reducing costs.

As for current aviation market, Ma said, passenger traffic is still increasing, but the main increase is due to tourist passenger, while two-cabin passenger growth slows down, which will affect the price level. Coupled with the European debt crisis impact, weak global economic recovery and high oil prices, the aviation market will not be too optimistic next year.