Following a disposal agreement of its entire stake in freight subsidiary Eastern Logistics, China Eastern Airlines plans to entrust China Cargo Airlines to manage the Group's bellyhold space freight business for three years.

On January 1, 2017, China Eastern and China Cargo entered into the Management Agreement.

Under the Management Agreement, China Cargo is entrusted to manage the bellyhold space freight business of the Group, including the businesses of bellyhold cargo sales, settlement and relevant operational support in all of the passenger flights under the Company, its branches and subsidiaries, the Shanghai-based airline said in a stock exchange filing.

For now, China Eastern expects to pay a maximum of 300 million yuan to China Cargo in 2017, and 500 million yuan in 2018 and 700 million yuan in 2019.

Shanghai-based China Cargo utilizes China Eastern's network to provide air cargo services.

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