| (b) | Related party transactions |
| Income or receipts/ | ||||||||||||||||||
| (expense or payments) | ||||||||||||||||||
| Pricing policy | 2017 | 2016 | ||||||||||||||||
| Nature of transaction decision | Related party | and process | RMB million | RMB million | ||||||||||||||
|
Interest income on deposits |
Eastern Air Finance Company | (iv) | 29 | 23 | ||||||||||||||
|
Interest expense on loans |
Eastern Air Finance Company | (iv) | (2 | ) | (10 | ) | ||||||||||||
| CEA Holding | (iv) | (1 | ) | (1 | ) | |||||||||||||
|
Handling charges for purchase of aircraft, flight, equipment, flight equipment spare parts, other property, plant and flight equipment and repairs for aircraft and engines* |
Eastern Import & Export | (ii) | (145 | ) | (105 | ) | ||||||||||||
|
Repairs and maintenance expense for aircraft and engines |
Wheels & Brakes | (ii) | (152 | ) | (176 | ) | ||||||||||||
| Technologies Aerospace | (ii) | (276 | ) | (252 | ) | |||||||||||||
| Shanghai P&W | (ii) | (2,538 | ) | (2,049 | ) | |||||||||||||
| Shanghai Hute | (ii) | (60 | ) | (84 | ) | |||||||||||||
|
Supply of cabin cleaning services |
Eastern Advertising | (ii) | (22 | ) | (21 | ) | ||||||||||||
|
Advertising expense* |
Eastern Advertising | (ii) | (23 | ) | (36 | ) | ||||||||||||
|
Media royalty fee |
Eastern Advertising | (iii) | 15 | 17 | ||||||||||||||
|
Supply of logistics services |
Eastern Import & Export | (ii) | (87 | ) | (72 | ) | ||||||||||||
|
Supply of system services |
China Kaiya | (ii) | (44 | ) | (79 | ) | ||||||||||||
|
Supply of food and beverages* |
Eastern Air Catering | (i) | (1,254 | ) | (1,054 | ) | ||||||||||||
| CEA Development | (i) | (72 | ) | (51 | ) | |||||||||||||
| Eastern Import & Export | (i) | (58 | ) | (50 | ) | |||||||||||||
|
Cargo handling income |
Eastern Import & Export | (iii) | — | 15 | ||||||||||||||
|
Automobile maintenance service, aircraft maintenance, providing transportation automobile and other products* |
CEA Development | (ii) | (68 | ) | (86 | ) | ||||||||||||
|
Equipment maintenance fee |
Collins Aviation | (ii) | (62 | ) | (30 | ) | ||||||||||||
| CEA Development | (ii) | (53 | ) | (11 | ) | |||||||||||||
|
Property management and green maintenance expenses* |
CEA Development | (ii) | (75 | ) | (59 | ) | ||||||||||||
|
Supply of hotel accommodation service |
CEA Development | (ii) | (104 | ) | (91 | ) | ||||||||||||
|
Land and building rental* |
CEA Holding | (ii) | (54 | ) | (54 | ) | ||||||||||||
|
Cargo terminal business support services* |
Eastern Logistics | (ii)&(vi) | (281 | ) | — | |||||||||||||
|
Bellyhold space management* |
Eastern Logistics | (ii)&(vi) | (117 | ) | — | |||||||||||||
|
Transfer of the pilots |
Eastern Logistics | (ii)&(vi) | (7 | ) | — | |||||||||||||
|
Freight logistics support services* |
Eastern Logistics | (ii)&(vi) | 100 | — | ||||||||||||||
|
Bellyhold container management |
Eastern Logistics | (ii)&(vi) | (9 | ) | — | |||||||||||||
|
Payments on finance leases* |
CES Lease Company | (ii) | (1,997 | ) | (2,721 | ) | ||||||||||||
|
Payments on operating leases* |
CES Lease Company | (ii) | (25 | ) | — | |||||||||||||
|
Disposal of a subsidiary |
Eastern Airlines Industry Investment | (v) | 1,754 | — | ||||||||||||||
|
Civil aviation information network services** |
TravelSky | (ii) | (551 | ) | (590 | ) | ||||||||||||
|
Flight training fee |
CAE Melbourne | (ii) | (138 | ) | (68 | ) | ||||||||||||
|
Flight equipment spare parts maintenance** |
CASC | (ii) | (98 | ) | — | |||||||||||||
|
Payments on aviation transportation cooperation and support services** |
AFK | (ii) | (399 | ) | — | |||||||||||||
|
Aviation transportation cooperation and support services** |
AFK | (ii) | 622 | — | ||||||||||||||
| (i) | The Group’s pricing policies on products purchased from related parties are mutually agreed between the contract parties. |
| (ii) | The Group’s pricing policies on services provided by related parties are mutually agreed between the contract parties. |
| (iii) | The Group’s pricing policies on services provided to related parties are mutually agreed between the contract parties. |
| (iv) | The Group’s pricing policies on related party interest rates are mutually agreed between the contract parties by reference to the benchmark interest rates. |
| (v) | The Group’s pricing policies on transfer of equity or disposal of investments are mutually agreed based on the valuation prices. |
| (vi) | The Group’s related party transactions with Eastern logistics only includes the transactions made after the disposal (note 43). |
| * | These related party transactions also constitute connected transactions or continuing connected transactions as defined in Chapter 14A of the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”). |
| ** | This related party transaction constitutes a continuing connected transaction pursuant to the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. |