TIDMAIRC
RNS Number : 6201E
Air China Ld
05 July 2019
The World is Closer Because of Us
2018
Corporate Social Responsibility Report
Air China Limited
CONTENTS
05Chairman's Statement
07Feature: Concentrating on Poverty Alleviation and Being
19About Us
19 Company Overview
20 Organizational Structure
21 Party Building
23 Corporate Governance and Risk Prevention
25 Anti-corruption
26 Corporate Culture
27Responsibility of Sustainable Development
27 Responsibility Concepts
28 Incorporating Responsibilities
29 Responsibility Communication
31Responsibility for Flight Safety
31 Optimizing Safety Management
35 Guaranteeing Safe Operation
36 Cultivating Safety Culture
37Economic Responsibility for Stakeholders
39 Creating Economic Value
40 A Win-win Relation with Partners
41Environment Responsibility for Green Aviation
43 Establishing and Improving Management Systems
44 Creating a Green Operational Model
46 Increasing Investment in Green Support
47 Participating in the Design of Green Mechanisms
48 Promoting Environmental Protection Public Welfare
Projects
49Social Responsibility for A Better Life
51 Improving Service Quality
55 Boosting Employee Development
58 Community Involvement
63 Table of Major Indicators
65 Major Honours
66 Outlook
67 HK-ESG Index
69 GRI Standards Index
71 Third-party Assurance
73 Feedback Collection
About This Report
Fulfilling social responsibility has become an inherent
requirement for enterprises to achieve sustainable development as
well as an important way to meet the expectations and demands of
stakeholders. This annual report reflects efforts and
accomplishments of social responsibilities Air China Limited
fulfilled in 2018. We hope you can feel our passion and commitment,
and continue to support and help us in carrying on our reform and
development.
Reporting Period
This report covers the period from January 1 to December 31,
2018, and some events might be traced back to the previous
years.
Scope of the Report
This report is primarily about Air China Limited, but also
involves its branches, operating units, supporting units, and main
subsidiaries such as Air China Cargo Co., Ltd. (Air China Cargo)
and Shenzhen Airlines Co., Ltd. (Shenzhen Airlines).
Basis of Preparation
This report is prepared in accordance with the Guidelines for
National Enterprises on Fulfilling Corporate Social Responsibility
released by the State-owned Assets Supervision and Administration
Commission of the State Council, the Notice on Strengthening the
Fulfilment of Corporate Social Responsibility for Listed Companies
released by the Shanghai Stock Exchange, the Guidelines of the
Shanghai Stock Exchange on Disclosure of Environment Information
for Listed Companies released by the Shanghai Stock Exchange, and
the Environmental, Social and Governance Reporting Guide of the
Hong Kong Stock Exchange (HK-ESG), the Global Reporting Initiative
Sustainability Reporting Standards (GRI Standards) of the Global
Sustainability Standards Board (GSSB), GB/T 36001 Guidance on
Social Responsibility Reporting and additional guidelines for the
aviation service industry.
Publishing of the Report
This is the eleventh annual CSR report published by Air China
Limited.
Sources of Data
All the financial data referred in this report, applying
domestic accounting standards, are extracted from the audited
annual reports of Air China Limited, while the other data comes
from official internal documents and relevant statistics.
Abbreviations
In this report, "we", "the Company" or "Air China" refers to Air
China Limited. "Air China Group" refers to Air China Limited and
its wholly-owned and controlled subsidiaries, while "CNAHC" refers
to China National Aviation Holding Corporation Limited.
Accessibility of the Report
This report is prepared in both Chinese and English, and should
there be any discrepancy in meaning between the two versions, the
Chinese version shall prevail.
Electronic copies of this report are also available for
downloading from the Company's website (www. airchina.com.cn)
If you wish to acquire a printed version or raise suggestions
and/or comments on this report, please contact us at:
Ms. Bai Xiao
Address: No. 30, Tianzhu Road, Airport Industrial Zone, Shunyi
District, Beijing, China
Tel: 86-10-61462152 Fax: 86-10-61462805
Email: baixiao@airchina.com
Economic responsibility
Maintain our industryleading
profitability;
Cooperate with value-chain
partners;
Promote regional
economic development;
and Facilitate integration
of different economies.
Safety responsibility
Make sure that every
trip, from departure
to arrival, is safe and
secure.
Customer responsibility
We care about you throughout
the flight, respect your wishes
and work hard to fulfil them.
Environmental responsibility
Flying in an environmentally
responsible manner, we bring
you closer to nature as we
carry you across the world.
Employee responsibility
Sincerity and affection are
the hallmark of our employee
relationship as we move
together into the future.
Social responsibility
We are always there for
you wherever you are and
whenever you need us. You will
see our sincerity and the sense
of responsibility.
Chairman's Statement
2018 CSR Report The World Is Closer Because of Us 06
Dear friends,
2018 was the first year for putting the guiding principles of
the 19th National Congress of the Communist Party of China fully
into effect. Guided by Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era, Air China has comprehensively
strengthened Party leadership and Party building, constantly
improved the modern enterprise system and corporate governance and
earnestly carried out various tasks such as safety, production,
efficiency and service, in order to fully implement the social
responsibility of state-owned enterprises and lay a good foundation
for achieving a high-quality and sustainable development.
Air China thoroughly implemented the important instructions of
General Secretary Xi Jinping on civil aviation work,
conscientiously implemented requirements of "two consistent" and
solidly promoted the "three critical battles". We actively guarded
against financial risks and strengthened liquidity management to
reduce the asset-liability ratio to 58.74%; continued to optimize
the debt structure, reduce the existing US dollar interest-bearing
liabilities to effectively control exchange risk; and expanded
financing channels and flexibly replaced debts to effectively
control the debt scale and reduce capital costs. In addition, we
strengthened the construction of comprehensive risk and internal
control systems to ensure that all the businesses were carried out
in compliance with laws and regulations; promoted poverty
alleviation, deeply implemented the poverty alleviation
implementation opinions and the "8+2" supporting plan, and helped
the designated poverty alleviation areas to smoothly advance their
poverty alleviation; actively propelled environmental protection,
implemented the "Three-Year Action Plan to Win the Blue Sky
Protection Campaign", and improved the energy conservation and
environmental protection management systems, striving to improve
the utilization of resources and energy and reduce the
environmental impact of production and operation; and deeply
implemented the requirements of "Double Hundred Actions" for
state-owned enterprises reform, and actively advanced the mixed
ownership reform of air freight logistics.
Air China earnestly fulfilled social responsibilities and
promoted the coordinated and sustainable development of
stakeholders. We also served the organic integration of national
strategy and enterprise development, and optimized the development
pattern in the practice of state-owned enterprises'
responsibilities. We have opened 754 air routes and can cover 1,317
destinations in 193 countries through the Star Alliance route
network. In addition, we have opened 56 international routes to 28
destination cities in 19 countries along the "Belt and Road" with
an effort to build a "Belt and Road" airway and contribute to our
country's new round of high-level opening up. We actively
participated in the national strategic construction such as
Beijing-Tianjin-Hebei integration, Guangdong- Hong Kong-Macau
Greater Bay Area and Yangtze River economic integration,
accelerated the development of Beijing into a world-class aviation
hub and the transition of Beijing Airlines into a synchronous
operation of business aviation and public transport aviation, and
impelled the Greater Bay Area cross-border e-commerce joint venture
projects of Kwo Lo Wan in Hong Kong. We have signed strategic
cooperation agreements with local governments such as Chongqing,
Zhejiang and Sichuan to actively serve local economic and social
development, and successfully completed major flights and special
charter missions for the Pyeongchang Winter Olympics and Winter
Paralympics, the China-Africa Cooperation Forum Beijing Summit, the
first China International Import Expo and the 60th founding
anniversary of the Ningxia Hui Autonomous Region and the Guangxi
Zhuang Autonomous Region. We achieved a safe flight of 2.25 million
hours in the whole year, an increase of 6.14% year-on-year. The RTK
was 27,518 million, the passenger transportation volume was 110
million persons, and the cargo and mail transportation volume was
1.91 million tons, with a year-on-year increase of 8.4%, 8.02% and
3.62% respectively. Air China achieved operating income of
RMB136.774 billion and a total profit of RMB9.958 billion, and the
net profit attributable to shareholders of listed company was
RMB7.336 billion, representing an increase of 1.33% year-on-year.
The flight on- time performance rate reached 80.36%, and the
overall passenger satisfaction reached 90.6 points, representing an
increase of 2.6 points year-on-year while the number of passenger
complaints per 10,000
persons was 1.35, down 17% year-on-year. In 2018, the Company
won the 2018 "Top-100 Enterprise Award" for Chinese listed
companies.
2019 marks the 70th anniversary of the founding of the new
China, and a crucial year for fully building a moderately
prosperous society in all respects. By following the guidance of Xi
Jinping Thought on Socialism with Chinese Characteristics for a New
Era, thoroughly studying and implementing the guiding principles of
the 19th National Congress of the Communist Party of China and
carrying on the development philosophy of "Innovation,
Coordination, Green, Openness and Sharing", we will deepen the
reform in an all-rounded manner and stimulate the inner drive for
growth, focus on the high-quality and sustainable development,
fulfill our inherent responsibilities as a state-owned enterprise
and make positive contributions to the society in respect of
economy, safety, services, environment, employees, communities and
targeted poverty alleviation, striving to develop Air China into a
top-tier air transport group in the world with global
competitiveness.
Cai Jianjiang
Chairman and Secretary of Party Committee,
Air China Limited
Concentrating on Poverty Alleviation and Being Responsible
Promote the implementation of targeted poverty alleviation to
reduce poverty
Since taking up the poverty alleviation work in the designated
areas, namely Sonid Right Banner of Inner Mongolia Autonomous
Region (the "Sonid Right Banner") and Zhaoping County of Guangxi
Zhuang Autonomous Region (the "Zhaoping County") in 2012, Air China
has always taken the poverty alleviation as an important political
responsibility, resolutely implemented the CPC Central Committee's
decisions and deployment requirements about the poverty
alleviation, and actively explored and improved the "8+2"
supporting model with Air China's characteristics. Specifically, in
the forms of direct poverty relief, industry-based poverty relief,
intelligence-oriented poverty relief and medium- and long-term
cooperation projects, we deepened the key supporting tasks and
accurately implemented the results with sincere devotion and
practical measures, in order to ensure doing well in poverty relief
and providing strong support for the economic development of
designated poverty alleviation areas.
Message for poverty alleviation
"We would like to thank the CPC Central Committee for giving us
the opportunity to participate in the great cause of poverty
alleviation, and thank local governments as well the local people
of the designated county (banner) for their trust and support to
Air China. In the process of fighting side by side in these years,
the strong will and determination shown by the people of the two
places had made all the cadres and staff of Air China impressed and
deeply educated, and had brought about strong positive energy for
promoting the reform and development of ourselves. We will always
cherish the deep friendship built in the designated supported areas
for the cause of poverty alleviation and continue to work hand in
hand for the realization of the moderately prosperous society." -
Cai Jianjiang, Chairman and Secretary of Party Committee
3077 317 112
Ten thousand Yuan Ten thousand Yuan Ten thousand kilometers
Work together with collaborative Help to sell agricultural Convert credits in the
parties to purchase agricultural products PhoenixMiles E-shop to
products of designated from designated areas buy
poverty specialties from the
alleviation areas poverty
alleviation areas
21.62 1000 180
Ten thousand Yuan Ten thousand Yuan Persons
Sell specialties from Voluntary investment Work together with
the for collaborative parties
poverty alleviation areas the development of the to
via village-level photovoltaic train technicians of
the "Phoenix Excellent power plant poverty the
Buy" alleviation project in poverty alleviation areas
poverty alleviation column Sonid
Right Banner
The pattern of poverty alleviation work in 2018
Assigning leaders to Expanding Focusing on "demand points"
implement Coverage and solving problems
supporting responsibilities with
Expanding precision
Conducting pairing work Collaboration Deeply tapping the
to "advantageous points"
closely communicate and to promote win-win via
coordinate Devoting with the "airground
sincerity linkage"
Formulating policies Consolidating "supporting
to define points" and improving
supporting ideas systems
for the sake of long-term
effectiveness
Grasping Broadening Identifying
three lines three aspects three points
Grasping "three lines" and resolutely implementing the
deployment of the CPC Central Committee
Assigning leaders to implement supporting responsibilities
Air China thoroughly implemented major arrangements of the CPC
Central Committee about the poverty alleviation, and had taken the
poverty alleviation as a major political task. The Company set up
an office to the poverty alleviation leading group and assigned
designated staff so as to further intensify the efforts in poverty
alleviation and strengthen the organization and leadership of
poverty alleviation. In 2018, the main leaders of Air China went to
the poverty alleviation areas to carry out investigation and
research, and also communicated twice with the main leaders of the
Party branch and government in poverty alleviation county (banner)
who came to Beijing for exchanges. In addition, we organized
regular studies and deployed the poverty alleviation work 18 times.
All the subordinate units had formulated the poverty alleviation
work plans, and put the effectiveness of poverty alleviation tasks
into KPI, truly taking up poverty alleviation as our own
responsibility.
Cai Jianjiang, Chairman and Secretary of Party Committee,
conducted in-depth research on poverty alleviation in Sonid Right
Banner
Song Zhiyong, Vice Chairman and President, together with
volunteers in Zhaoping County, Guangxi
Special research and deployment
We conducted special research and deployment of poverty
alleviation work at important meetings, and held the annual poverty
alleviation meeting
Deepening the theory of poverty alleviation
We incorporated the targeted poverty alleviation into our
development strategy, and strengthened the understanding of the
importance, difficulty and urgency of poverty alleviation in the
Party organizations and the majority of Party members at all levels
through the collective study of General Secretary Xi Jinping's
important thought on poverty alleviation and development as well as
the latest poverty alleviation deployment of the CPC Central
Committee
Conducting pairing work to closely communicate and
coordinate
Air China regarded strengthening communication and deepening
understanding as an important prerequisite for precise assistance.
In 2018, Cao Jianxiong, Vice President and Deputy Secretary of the
Party Committee, investigated poverty alleviation work for 7 times,
for listening to the needs, daily life and industrial development
of local people, discussing measures together and giving advices on
the poverty alleviation.
Cao Jianxiong, Vice President and Deputy Secretary of the Party
Committee exchanged ideas with cadres in poverty alleviation
areas
In-depth communications on poverty alleviation
"Line to line" to communicate regularly
Maintain regular communication with the two places through
channels such as TV and telephone conferences, in order to report
the situation and solve the problems immediately
"County to county" to share experience
We arranged the leaders of Zhaoping County to Sonid Right Banner
for exchanging opinions on poverty alleviation, and arranged
relevant staff of Zhaoping County to Anji County, Zhejiang for the
inspection of the bamboo industry, absorbing the advanced business
ideas from developed counties
"Face to face" to accurately find out the actual situation
The Company's leaders visited designated areas many times to
check the implementation of the assistance projects and invited
major local leaders to Air China for exchanging ideas
Formulating policies to define supporting ideas
Air China adhered to the concept of sustainable development,
coordinated the needs of designated areas and our resources, and
regarded the system construction as the top priority by further
optimizing and improving the "8+2" working system. In addition, we
expanded the number of specific projects and leading units to 16,
further enhancing the guidance, adaptability and coordination of
supporting systems.
Altering value concepts
Special recruitment for the poverty alleviation personnel;
Personnel exchange and training
Providing resources
Direct poverty relief
Voluntary poverty relief
Teaching technology
Development of featured products Employee's purchase for
self-use
Brand promotion Featured tourism cooperation
Long-term cooperation
Assist in planning development and seeking policy support
Support from Air China and collaborative parties
"8+2" supporting working mechanism
Link: "8+2" supporting working mechanism
In respect of "8+2" supporting working mechanism, "8" stands for
eight methods, namely direct poverty relief, voluntary poverty
relief, development of featured products, employee's purchase for
self-use, brand promotion, featured tourism cooperation, special
recruitment programs and personnel exchange and training; and "2"
represents assisting in planning development and seeking policy
support, and support from Air China and collaborative parties.
Identifying three points, made solid progress in the key tasks
of targeted poverty alleviation
Focusing on "demand points" and solving problems with
precision
Air China adhered to the problem-oriented approach and strived
to provide accurate support to the designated places. For the needs
for emergency relief, funds would be directly allocated to help the
special groups; for the needs of industrial development, Air China
and the collaborative parties actively motivated staff to purchase
agricultural products voluntarily; for the needs of team building,
we took the approach of "inviting in and going out" to train
various types of talents from designated places; and for the needs
of development funds, free funds had been allocated to help local
development.
Direct poverty relief by providing resources
Air China had established a long-term working mechanism of
offering accurate and direct aid to special groups. We strived to
focus on the real issues and start from little things, and solved
the vital problems faced by the local people in terms of medical
assistance, educational support, production subsidies,
transportation, drinking water, and electricity.
Industries-based poverty relief by teaching technology
Air China joined hands with the cooperative companies to promote
industrial assistance and focus on improving the self-development
ability of designated areas people, and further innovated the
cooperative development method of the featured tourism and
agricultural and animal husbandry products in poverty alleviation
areas, in order to increasing the power of "blood generation"
ability and achieving poverty elimination in the long run.
The tasting activities of designated areas products for
employee
Intelligence-oriented poverty relief to increase the power of
"blood generation"
Air China had intensively advanced the recruitment and
cultivation of graduates from designated areas, deepened the
training of cadres, selected and assigned cadres of poverty
alleviation to support the local development, and enhanced the
ability of local people to develop production and thus get rid of
poverty.
33 5 122 180
Recruited 33 people 5 outstanding Trained 122 Assisted in training
to work in the ground employees recruited outstanding grassroot 180 technicians
division of Air from poverty alleviation cadres and young in
China area were sent to cadres the two places
go to
Hong Kong for a
twomonth
internship
-------------------------- ----------------------- ---------------------
Inviting young cadres from both poverty alleviation areas to
participate in 3 training courses for reserve cadres of Air China
and organizing 2 training courses for the local young cadres.
Holding hotel management training, e-commerce skills training,
teachers' continuing training and western-style dessert skills
training, for core cadres in both poverty alleviation areas
Deeply tapping the "advantageous points" to promote win-win via
the "airground linkage"
Air China leveraged resource advantages to drive the development
of distinctive resources in the two places. The Company coordinated
the air-food catering resources, and offered 11 kinds of meals with
Sonid beef and mutton on some routes, and purchased organic tea
from Zhaoping County for cabin services, by a series of brand
activities; coordinated media propaganda resources to focus on Ulan
Muqir, Sonid sheep, dragon-boat races, villages of longevity and
other special highlights, and promoted the natural scenery and
cultural features in the designated areas of poverty alleviation on
the on-board media, sales offices and WeChat public accounts; and
coordinated route network resources to develop tourism products and
actively guide tourists to visit the two places.
Popularizing the natural scenery and cultural features of the
two places on Air China on-board media
Characteristic cultural tourism projects of Sonid Right Banner,
Inner Mongolia
Varied tourism resources in Zhaoping County, Guangxi
Consolidating "supporting points" and improving systems for the
sake of long-term effectiveness
Air China had formulated relevant systems in terms of funds
management, voluntary assistance, supervision and inspection,
working style, etc., and signed the Three-Year Poverty Alleviation
Cooperation Framework Agreement with Sonid Right Banner of Inner
Mongolia and Zhaoping County of Guangxi, aiming to clearly define
the direction of designated supporting work and transform the
effective practical experience into an institutional arrangement
that could be followed for a long time to ensure that the effect of
poverty alleviation sustainable.
Broadening the "three aspects" to actively seek support from
various parties
Expanding coverage
Air China actively mobilized the staff to participate in the
assistance work, formulated and implemented the pairing assistance
programs, and determined the pairing assistance relationship
between various units and poor households in the two places,
forming a cluster-type working pattern. The voluntary supporting
education activity of "Blue Sky Class" had been carried out on a
regular basis with 153 volunteers in 17 batches giving a total of
887 class hours in the two places in 2018. As a typical example of
state-owned enterprises actively fulfilling social
responsibilities, our voluntary teaching activities had been shown
in the "Exhibition for Celebration of the 40th Anniversary of
Reform and Opening up" of the National Museum in the forms of
photos and explanatory notes.
Cases The "Blue Sky Class"
In response to the national strategy of targeted poverty
alleviation, Air China launched the "Blue Sky Class" volunteer
education activities in 2017. By attaching equal importance to
intelligence and aspiration and adhering to the volunteering spirit
of "dedication, friendship, mutual assistance and progress", our
volunteers assumed the responsibility and undertaking with
practical actions, not only built a bridge of hope for the children
in poverty-stricken areas, also reaped the love and strength of
growth at the same time.
Each wave surges
Zhaoping County, Guangxi is located at the southern end of
China, with beautiful scenery and honest folks. Volunteers taught
English, music, art and other courses to children there, as well as
sang, danced, drew and played with them. Such simple little things
had made children smiling with sincerity. The arrival of volunteers
opened a small window to the wonderful world for those children who
had never travelled far away.
A colorful world painted by little hands
Each color should be in full bloom
From the painted aircraft to the Phoenix spirit, the wonderful
story deepened the children's understanding of Air China; from
first-aid knowledge to outward training, the children learned that
a healthy body could help them flying higher and farther; from
Chinese culture to colorful world, the profound history and the
collision of different cultures had made children coming up with
"sparks" of thought that they never had before; and from literature
to film, from handcraft to experiment, from the ground to the air,
from the body to the soul, we sincerely expected that the
children's future could have unlimited possibilities.
Learning first-aid knowledge and applying it at critical
moments
Every effort pays off
The road of voluntary teaching is long and hard, not only a road
of dedication, but also a road of growth. Teaching means being
educated more than imparting knowledge. In the short time of
teaching, volunteers ignited the love and hope of the children,
meanwhile grew together with them.
Volunteers and children flying dreams together
In 2019, the "Blue Sky Class" will remain an important part of
the "8+2" project for designated poverty alleviation. Air China
will continue to vigorously carry out voluntary poverty alleviation
services, continuously explore new forms of voluntary education,
earnestly advance voluntary poverty alleviation, and interpret love
with responsibility and undertaking.
Expanding collaboration
By adhering to the principle of collective thoughts and
concerted efforts, Air China actively introduced partners to
participate in poverty alleviation and gave full play to their
professional expertise and resource advantages to focus on
addressing the knotty issue of poverty alleviation in
poverty-stricken areas.
1 Concluding an agreement with the China Red Cross Foundation to
establish two charity health stations in Zhaoping County,
Guangxi
2 In cooperation with Airbus SE, inviting 17 outstanding youth
representatives from both places and Ulan Muqir members to attend
the landing ceremony and activities in France
3 Inviting 21 mainstream media such as Xinhuanet and People's
Daily Online to Sonid Right Banner for an interview on the purpose
of expanding its popularity and influence
4 Bringing the 'Baidu Map' team to Sonid Right Banner to collect
geographic information and successfully making it launched, for the
'precise navigation' for the daily life and production of farmers
and herdsmen as well as poverty alleviation through tourism
5 Supporting the China Environmental Protection Foundation and
the Chinese Academy of Forestry to visit Sonid Right Banner to
conduct investigation and research so as to explore programs on
poverty alleviation by ecological means
6 Signing a memorandum of cooperation with tourism companies
such as Guangzhou Jinma International Travel Service to jointly
promote projects on poverty alleviation through tourism
Joined hands with collaborative partners to help poverty
alleviation
Devoting with sincerity
Air China made it closer for the two places in our sincere
communication, continued to write our own chapter on poverty
alleviation in heartfelt words, and fulfilled the mission and
responsibility of serving the country with integrity in a
down-to-earth style.
Committed to the poverty alleviation, each staff of Air China
was either striving on the front line, or staying on the home
front, either making suggestions or contributing ideas or making
donations. We gathered and devoted our love and strength to the
poverty alleviation.
Organizing outstanding young representatives from
poverty-stricken areas to visit the Airbus SE headquarter in France
for scientific and technological exchanges. The leaders of the
Company saw off and sent cordial messages to the children
Sticking to the front line of poverty alleviation and striving
to benefit the people's livelihood
By implementing General Secretary Xi Jinping's comment of "the
key to a successful battle lies in people", Air China actively
carried out a new round of selection and assignment of seconded
cadres for poverty alleviation. Selected outstanding talents with
high professional quality, strong organizational leadership
ability, good physical quality and pioneering and innovative
spirits to work in the poverty-stricken areas.
Poverty alleviation quotes:
Poverty alleviation work is a sacred responsibility and mission.
Stay true to our original aspiration and keep moving on. We hope we
can continue to witness the warmth, happiness and touching moments
in the aid offered in the designated supported areas!
--Wang Junfeng, the poverty-alleviation cadre seconded to
Sonid Right Banner of Inner Mongolia
Despite countless hardship and setbacks lie ahead, we commit
ourselves to poverty alleviation!
--Qian Jiang, the poverty-alleviation cadre seconded to
Zhaoping County, Guangxi
We can always feel the endless warmth from the Party in the
poverty alleviation. In the fight against poverty, the measures
taken by Air China were solid and effective, and Jiangkou villagers
are full of expectation and confidence!
--Xuanyan, the First Secretary of Jiangkou Village,
Zhaoping County, Guangxi
Conclusion
In 2018, through Air China's practical aid, the poverty rate of
Sonid Right Banner of Inner Mongolia fallen to 0.21%, and all 34
poverty-stricken villages successfully passed the preliminary
review of withdrawal from poverty-stricken banners and the
third-party evaluation and acceptance of the autonomous region. In
addition, 20 poverty-stricken villages and 20,063 people from 4,513
households in Zhaoping County had been lifted out of poverty, and
the poverty rate had dropped to 7.69%.
In 2019, Air China keeps moving forward with gratefulness.
Guiding by the philosophy also named as the spirit of phoenix, Air
China will continue to participate in poverty alleviation and bring
happiness and good fortune to more and more people. Air China will
always cherish the deep friendship with and affection for the
supported areas that had been formed in the cause of poverty
alleviation, and will join hands with the people of the two places
to realize a moderately prosperous life.
About Us
Stock Code
Shanghai Stock Exchange: 601111
Hong Kong Stock Exchange: 00753
London Stock Exchange: AIRC
US ADR OTC: AIRYY
Company Overview
Air China Limited was founded in 1988, the predecessor being
known as Air China International Corporation. In October 2002, Air
China International integrated the air transportation resources of
China Southwest Airlines and China National Aviation Company to
form a new entity. On September 30, 2004, Air China Limited was
founded in Beijing. The Company was then listed both in Hong Kong
and London on December 15 of the same year, before floating in the
domestic A-shares market on August 18, 2006.
In the lead among domestic airlines in both passenger and cargo
transportation and other related services, Air China is a member of
the Star Alliance, the world's largest airline alliance, and the
only Chinese civil aviation enterprise that is among the World's
500 Most Influential Brands. The Company is also China's only
flag-carrier, providing exclusive flight services to the
government, top-ranking foreign officials and visitors to China as
well as emergency flight services.
In 2018, Air China Group carried 110 million passengers, and
1,908.4 thousand tons of cargo and mail, and RTKs (revenue ton
kilometres) reached 27,518 million. We recorded RMB136,774 million
in business revenue, with net profit attributable to equity
shareholders of the Company of RMB7,336 million, ranking top among
aviation companies in terms of business performance.
Party Building
As the flag carrier, Air China has always regarded "maintaining
the Party's leadership and strengthening Party building" as major
political principles as well as unique development advantages. In
2018, Air China thoroughly studied and implemented Xi Jinping
Thought on Socialism with Chinese Characteristics for a New Era and
the guiding principles of the 19th National Congress of the
Communist Party of China, in order to consolidate and deepen the 30
key tasks put forward at the national state-owned enterprise Party
building conference to grasp leadership, responsibility,
innovation, quality and people's trust and focus on promoting the
implementation of the CPC Central Committee's comprehensive and
stringent governance work in all aspects of the Party to achieve
new progress, new achievements and new improvements, and hence
strive to provide strong political and organizational guarantees
for the grand cause of reform and development.
Thoroughly studying and implementing Xi Jinping Thought on
Socialism with Chinese Characteristics for a New Era and the
spirits of the 19th National Congress of the Communist Party of
China
Air China learned, publicized and implemented Xi Jinping Thought
on Socialism with Chinese Characteristics for a New Era and the
guiding principles of the 19th National Congress of the Communist
Party of China. We adhered to the political construction as the
guiding principle, comprehensively promoted the Party's political
construction, ideological construction, organizational
construction, working style construction and discipline
construction, and carried out the system construction throughout
the process to fully implement the responsibility of the Party
management and governance.
Centre Group of the Party Committee
Formulated an annual study plan of the Theory Learning for
Centre Group of the Party Committee to ensure a systematized and
comprehensive learning
Studied the important speeches of General Secretary Xi Jinping
as well as the new deployment of the CPC Central Committee in the
first time
Organised 16 study sessions and 9 seminars of the Theory
Learning for Centre Group of the Party Committee throughout the
year
Air China Party Committee members gave Party lectures, put
forward requirements to subordinated units, grass-root contact
points and various types of cadre training sessions
Senior executives and cadres
Organized more than 240 senior executives to participate in
three sessions of Political theory training at the Party School of
the CPC
Held 16 training sessions with 679 grass-root Party committee
secretaries, branch secretaries and Party cadres participated to
improve political literacy
Organized 82 management members of the second-level units and
1,388 Party members and cadres at the senior manager level and
above to participate in online training courses on the guiding
principles of the 19th National Congress of the Communist Party of
China
Full coverage
Issued learning materials such as "Thirty Lectures of Xi Jinping
Thought on Socialism with Chinese Characteristics for a New Era"
and "Liang Jiahe" to promote learning coverage to all branches
Conducted learning activities such as essay and knowledge
contests on the 19th National Congress of the Communist Party of
China to reach out to all Party members
Conducted the "Learning from the 19th National Congress of the
Communist Party of China and Being Always with Party" online
learning answering activities throughout the Company
Comprehensively and faithfully implement the spirit of the 19th
National Congress of the CPC
Putting the responsibility of Party building into effect
Focusing on fulfilling key tasks put forward at the national
state-owned enterprise Party building conference, Air China
continuously completed the responsibility system for Party building
work, and studied and formulated the implementation plan and
evaluation method for the Party building work responsibility system
to improve the review and evaluation mechanism and carry out the
annual assessment of the Party building responsibility system, so
that Party members and cadres at all levels could be aware of and
perform their own responsibilities, and various measures aiming at
the comprehensive and stringent Party governance work could be
carried out.
Strengthening the construction of "three fundamentals" in an
all-round way
With the focus on improving organizational strength and
enhancing political functions, Air China had innovated and explored
new methods and measures for the construction of Party
organizations at the grass-root level, continuously improved the
quality and level of Party building at the grass-root level and
established powerful fundamental organizations, fundamental teams,
and fundamental systems with a view to impelling the comprehensive
and strict governance of the Party in depth and breadth.
Reinforcing the fundamental organizations
Insisted on the implementation of the Party lecture mechanism in
the Party organizations at the grass-root level, and elected
advanced grass-root Party organizations, outstanding Party members
and distinguished staff of Party affairs
Improved the working mechanism for strengthening the
construction of overseas, mobile and decentralized Party
organizations, and enhanced the ability and coverage of grass-root
organizations
Improved the management mechanism of Party members in aircrew
team and overseas institutions
Establishing strong fundamental teams
Implemented the comprehensive management of Party members and
strictly regulated the development process of Party members
Strengthened the training of staff of Party affairs and Party
members at the grass-root level, and strived to improve the ability
of Party branch leaders, staff of Party affairs and activists
Completing fundamental systems
Continuously improved the "1+N" system of Party building
work
Formulated and revised more than 10 fundamental systems such as
creating good Party Branches and Party Groups, and promoted the
long-term effectiveness of grass-root Party building in a
normalized manner
Exploring new methods and measures
Established the Office of Party Construction Research Project,
and cooperated with well-known domestic universities to carry out
Party building research in response to the difficulties encountered
in the work
Corporate Governance and Risk Prevention
At the critical moment of new development period, Air China
strictly abides by the relevant requirements of domestic and
overseas listing rules as well as relevant laws and regulations,
continuously improves the modern enterprise system, promotes the
construction of the governance system, enhances the governance
capacity, safeguards the overall interests of all shareholders, and
further enhances the compliance management, meanwhile, facilitates
the realization of the strategic goal of "making Air China a
world-class aviation group with globally-competitiveness in the
world".
Improving the construction of the board of directors
Air China had deeply promoted the construction of modern
enterprise systems. According to the overall requirements of the
SASAC on standardizing the board of directors, we optimized the
structure of the board of directors, improved the resolutions
management, the feedback mechanism for resolutions, relative rules
and regulations as well as optimization processes of the board
hence consolidating the foundation of corporate governance
standardization and process-based management.
In order to actively play the supporting and decision-making
functions of the special committees and directors, Air China
strengthened the report mechanism of secretary to the board and the
investigation management of the directors, such as organizing
periodic debriefings and docking with the joint working groups, to
help the independent directors and special committees with an
in-depth understanding of the Company and a better perform of the
duty.
Cabin service Investigation by directors of the board
Establishing and perfecting the modern enterprise system with
Chinese characteristics
Air China resolutely implements the decisions and requirements
of the CPC Central Committee and State Council on the reform of
state-owned enterprises, and takes the new development philosophy
as the guide, continuously optimizes the design of top-level
management and constantly adhere to the Party's leadership over
state-owned enterprises and stick to establish a modern enterprise
system. In this way, the organic unity of the Party's leadership
and the modern enterprise system with Chinese characteristics in
corporate governance had been completed, and the legal status of
the Party organization in the corporate governance structure had
been clarified, so that the role of the Party organization in the
listed company was more organized, institutionalized and
concrete.
Improving the ability of risk management and control
Focusing on risk prevention and efficiency improvement, Air
China actively promoted risk management and control, improved the
risk internal control system, formulated and issued internal
control management regulations, and revised the risk management
measures. In accordance with the requirements of the internal
control system and related regulations, we actively rectified the
problems found and maintained the effectiveness of internal
control. In 2018, Air China had no major or material shortcomings
in internal control over financial and non-financial reports.
1 Actively implemented the spirit of the special meeting of the
SASAC on overseas risk prevention and control of state-owned
enterprises, realized the normalization of comprehensive
investigation on the Company's overseas risks, thoroughly
identified the risks of the"Belt and Road" related projects, and
focused on strengthening the risk assessment of major overseas
investment projects
2 Effectively implemented the investment and management
regulatory requirements, improved the risk assessment mechanism for
"4 major decisions" as well as important matters such as major
investments, mergers and acquisitions, reorganization and reforms
etc. and established risk warning mechanisms
3 Improved risk management monitoring methods and expanded the
coverage of monthly report about risk monitoring
Strengthening compliance management
Air China promoted the construction of a compliance management
system and abided by business ethics, and also continuously
enhanced the ability of corporate governance and compliance
management according to laws and effectively controlled business
risks, in order to ensure the healthy development of enterprise. We
initially formed a comprehensive, shared and normalized compliance
training system within the Company, and produced and issued
compliance guidelines and training manuals for key areas such as
the Overseas Compliance Training Manual, and constantly improved
the Company's rules and regulations system by actively setting up,
revising and abolishing relevant rules and regulations. In
accordance with the reform of adjusting the civil aviation industry
supervision mode, the Company actively carried out statutory
self-inspection work to ensure operating in compliance with laws
and regulations.
Intensifying the intellectual property management
Air China comprehensively checked intellectual property reserves
and continued to put more efforts in intellectual property rights
protection such as trademark infringement, unfair competition and
trademark dilution. In 2018, Air China continued to improve the
ledger management of intellectual property rights, and realized
dynamic management of more than 3,000 registered trademarks and
patents.
Strengthening market value management
Air China actively improved the information disclosure system
and strengthened the refined management. By focusing on the annual
key issues, the Company deepened the research on market value
management, actively explored the market value management channels
and strengthened communication with investors and media so as to
disseminate Air China's value and create a model of information
disclosure compliance for listed companies. In 2018, Air China
organized in aggregate three general meetings, six meetings of the
board of directors, five meetings of the board of supervisors and
11 meetings of various special committees of the board of
directors, and also held the semi-annual results conferences,
roadshow activities and global performance conferences of the first
and third quarterly report for the years of 2017 and 2018. In
addition, the Company participated in more than 10 Chinese summits
and investment strategy meetings, and completed more than 100
investigation and research conferences and telephone conferences of
domestic and foreign institutions.
Anti-corruption
Air China has continuously improved the building of Party style
and clean government and anti-corruption system, built a long-term
mechanism against corruption and carried out the main
responsibility of the Party committee and the supervisory
responsibility of the discipline inspection committee. The company
also carried out warning education with typical disciplinary cases
as the negative teaching material, which the majority of Party
members and cadres could learn from.
Air China organized the study of the spirit of the relevant
documents of Disciplinary Inspection department of the Party
Central Commission and the Country, strengthened the management and
supervision of leaders and cadres, and established a clean
government archive for leaders, and we also insisted on the
normalization and institutionalization of talks on integrity with
cadres and organized anti-corruption special training aiming to
raise anti-corruption awareness. In 2018, the Company organized a
total of 2,099 integrity conversations, held 1,416 special
trainings on Party building and clean government construction as
well as anti-corruption work, carried out 3,306 education
activities about Party rules and disciplines, and completed special
inspections on the implementation of Eight Rules issued by the CPC
Central Committee for 17 units.
Corporate Culture
In 2018, Air China's corporate culture work focused on
formulating and issuing the 'Implementation Opinions on Boosting
Cultural Confidence and Strengthening Cultural Transmission' by
implementing the 'Building Stronger Cultural Confidence and Helping
Socialist Culture to Flourish' proposed by the 19th National
Congress of the Communist Party of China and in light of
development advantages and actual needs, which had defined the
major contents and methods of cultural transmission. Accordingly,
the three-dimensional transmission platforms of corporate culture,
such as Air China channels, exhibition halls and cultural
corridors, effectively promoted the popularization of corporate
culture.
Air China has always adhered to culture as connotation, and has
committed to promoting the creative transformation of China's
excellent traditional culture and improving the humanistic
connotation and humanistic quality that matches the first-class
aviation group. In 2018, Air China organized a series of
"Humanistic Air China" theme activities. For example, five sessions
of "Humanistic Air China" cultural lecture were held to actively
promote the ritual culture construction projects, the "Humanistic
Air China" series of talk shows were recorded, the speech contest
and the creative emoji collection event were carried out, and a
documentary for the front-line staff named "touching" was filmed.
It is hoped that these activities would help enhance the employees'
awareness and become their action guidance, and gather all strength
together to make Air China a top-class aviation group in the
world.
Case "Humanistic Air China" lecture carrying forward traditional
culture
Air China made a creative transformation of Chinese excellent
traditional culture, and used our own advantages to do a good job
in the ideological propaganda work under the new situation.
Air China organized the "Humanistic Air China" culture lecture,
and invited famous scholars to teach a series of humanities
courses. Based on the excellent traditional Chinese culture, these
courses aimed at fostering and carrying forward the core values of
socialism and actively creating a good atmosphere for exploring
humanities, advocating humanistic thinking and pursuing humanistic
care, and ultimately improving the soft power of Air China.
The event of the "Humanistic Air China" cultural lecture in
2018
Responsibility of Sustainable Development
Responsibility Concepts
Air China consistently implemented the principle of combining
social responsibility concepts with corporate strategic deployment,
and integrated social responsibility with the formulation of
corporate strategy, management and operations, consolidated the
foundation of social responsibility management through formulating
a comprehensive sustainable development plan, in order to
continuously improve the ability to fulfill social responsibility
and facilitate the harmonious integration of benefits in economy,
environment and society.
By upholding the social responsibility concept of meeting social
needs and creating mutual value, Air China continuously
strengthened social responsibility management, established a sound
social responsibility management system, enhanced communication
with stakeholders, deepened awareness of potential markets,
improved the service level and systematically impelled the
fulfilment of social responsibility, laying a solid foundation for
maximizing the Company's economic, environmental and social
values.
Incorporating Responsibilities
Air China established and perfected the social responsibility
work leadership structure, and formed a social responsibility work
leadership mechanism with clear hierarchy and clear division of
work. It clarified the establishment of the governing body, the
division of work responsibilities and the main responsible
departments and personnel, strengthened the strategic
decision-making and planning and deployment of social
responsibility work, and guided and advanced corporate social
responsibility work, so that the social responsibility work could
be undertaken and implemented at each level.
Air China established a social responsibility work leading
group, responsible for social responsibility strategy formulation
and planning approval, and guiding the implementation of social
responsibility work. We intensified the construction of normal
social work mechanisms such as corporate social responsibility
planning, governance, integration, and communication. For two
consecutive years, we actively participated in the SASAC social
responsibility project, and thoroughly explored typical cases of
fulfilling responsibility. Our outstanding cases were widely
disseminated through the "Blue Book of State-owned Enterprise
Social Responsibility" issued by the SASAC. In 2018, we carried out
the social responsibility activities of "Together to Build the
Responsible Brand" by combining the main attributes of the aviation
industry, in the hope of inspiring the sense of responsibility of
all employees, promoting the spirit of fulfilling responsibility
and establishing a responsible and good social image.
Responsibility Communication
Air China was committed to building a regular communication
mechanism with stakeholders. Based on responsibility fulfilment
issues, Air China innovated communication channels and methods and
accurately disseminated the Company's social responsibility concept
and responsibility fulfilment dynamics to create a responsible
brand image and enhanced the competitiveness of responsibility, in
addition to meeting the expectations and needs of internal and
external stakeholders, such as governments, shareholders and
creditors, customers, employees, partners, peers, communities and
media.
Identifying substantive issues
From the perspective of stakeholders, in light of China's
national conditions and state policies, industry characteristics
and the Company's business characteristics, Air China screened out
substantive issues that were important to both sides through
identification, sequencing, approving and review, which were sorted
and ranked according to the two dimensions of "importance to the
Company's sustainable development" and "importance to
stakeholders".
Stakeholder Communication
Air China actively responded to the expectations and needs of
stakeholders, sought the trust and support of stakeholders, and
drove forward CSR work more effectively.
Stakeholders Communication Expectations and Response from
appeals Air China
Government/Domestic Work meetings Integrity compliance Participating in
and overseas and briefings and orderly operations the planning, research
regulatory Information disclosure Support for important and formulation
authorities Cooperation with and major events of policies
local government Zero accident affecting Special topic reports
safety of operations Monitoring and evaluation
Good corporate Support special
image flight missions
Energy conservation,
emissions reduction
and environmental
protection
Investors/Shareholders Information disclosure Realising standardised Improving corporate
corporate governance governance and internal
control system
Shareholders' Protection of investors' Strengthening
meetings and shareholders' efficiency-leadership
rights and interests competitiveness
Investors' meetings Sustainable profitability Regular result announcement
Customers Customer satisfaction Flight safety and Branded lounges
surveys on-time performance Drawing self-portraits
Complaint handling All-round and high-quality of gracefulness
New media services Special efforts
in improving food
quality
Intelligent services
Improving release
mechanism for information
on irregular flights
Employees Employee satisfaction Protection of rights Building a multi-level
surveys and interests talent developing
Internal BBS, channel and learning
magazines, emails path
and WeChat Improving the facilities
Employee representatives of Staff Service
meetings Centre
Labour unions, Launch of "Blissful-Heart
teams construction Project" to offer
psychological health
service
Helping employees
in difficulty
Focus on the Company's
development strategy
Participation in
the Company's management
and operation
Smooth career development
Compensation benefits
Partners/Suppliers Daily business Honesty and integrity Strengthening supplier
interactions in business operation management
Partners meetings
Transparency in Revising and improving
procurement procurement policy
Common development Strengthening suppliers'
environmental protection
concept and capability
Peers Industry forums Attention to industry Strengthening alliance
Industry conferences development and and cooperation
trends Launch joint operation
Maintenance of Signing of cooperation
fair market order memorandum
Community Public welfare Promote economic Intensifying targeted
and charity activities growth of the communities poverty alleviation
Volunteer work Support public
welfare events
Engaging in public
welfare and charity
activities
Poverty and disaster
relief work
Media Press release Important events Publication of annual
of the Company CSR report
Media calls and Public image and Timely update of
visits influence new developments
via Weibo and WeChat
Official new media Future planning Media open-day
platform
Responsibility
for Flight Safety
Air China studied and implemented General Secretary Xi Jinping's
important instructions on civil aviation safety work and upholding
the principle of "Safety first, Focus on prevention, Integrated
management", constantly improved the aviation safety management
system and deepened the application of safety management system,
and continuously increased safety management and control
capabilities to ensure continuous and safe operation.
Supporting the UN 2030 Sustainable Development Goals
Providing the security transportation system, improving aviation
safety
Optimizing Safety Management
Strengthening the implementation of safety responsibility
Air China reinforced the organization and leadership of safety
production, adhered to the prevention-oriented and issue-oriented
approaches, and took the safety data analysis as the starting point
to effectively solve the problems existing in the production and
operation. The Company also intensified the building of Safety
capabilities and strictly dealt with violations of regulations and
non-implementation of management responsibilities, so that safety
responsibilities were implemented at every levels.
In response to the typical unsafe incidents that occurred in
July, the Company set up a leading group for the safety
rectification and overhaul work led by the top management leader
and carried out a four-month safety rectification and inspection
work, and also earnestly cooperated with the supervision of the
Civil Aviation Administration of China and established a list of
hidden dangers and rectification lists, marking a conclusion of all
the rectification work. Since September, the three safety
indicators of the Company, namely the Safety Risk Index, Flight
Control Risk Index, Fleet Technical Risk Index had been all within
the green area, and all the safety indicators had been obviously
improving.
Strengthening risk management
Air China deepened the construction of safety risk prevention
and control system, forward Safety barrier and facilitated the
construction and deep application of safety management system. The
Company also promoted the deepened application of the digital
operation risk assessment system, strengthened risk identification
and prior control, quantitatively evaluated the quality of safety
operations and key risks, and continuously improved the operational
safety risk management and control capabilities, laying a solid
foundation for safe development.
01 Applying the navigation safety system to analyze the safety
operation data, and in combination with the industry safety status,
carrying out in-depth daily operation risk prevention and control,
key risks management and control and the management of risks of
major changes and organizational risks
02 Conducting special rectification actions for deviation from
regulatory directives to effectively reduce the incidence of unsafe
incidents
03 Identifying and controlling the organizational and management
risks
04 Actively implementing risk prevention and control measures
for new aircraft types, new routes and new personnel
05 Strengthening the application of digital risk assessment
system, and enhancing the control capability and emergency response
capabilities during the operation process
Deepen risk management and control measures
Focusing on Aviation Security
Air China continuously improved and supplemented the aviation
security management system, continuously strengthened
anti-terrorism thinking and bottom-line awareness and organised
aviation security emergency drills, with a view to comprehensively
increasing air defence safety emergency response capabilities,
properly responding to emergencies and ensuring the generally
stable security situation.
A Reviewing and revising manuals such as the Aviation Safety and
Security Program and the Aviation Safety and Security Training
Program
B Intensifying aviation security training and security emergency
drills to further improve air defence safety emergency response
capabilities
C Carrying out key inspections, security tests, etc.
D Enhancing security risk prevention and control management,
issuing air defense warning in a timely manner and preventing and
controlling overseas aviation security risks
E Developing and submitting personalized security solutions
Case Successfully solving flight illegal interference
incidents
In 15 April, there was an abduction on the CA1350
(Changsha-Beijing) flight. Air China promptly launched emergency
handling procedures to organize and direct the emergency response
work, and the crew faithfully fulfilled their responsibilities with
sangfroid by effectively maintaining the order in the cabin, and
landed the flight to Zhengzhou Airport and actively cooperated with
the relevant departments to deal with the disposal work, ensuring
the safety of life and property for 150 passengers on board as well
as the safety of aircraft.
Enhancing emergency response capabilities
Air China improved the organization and leadership of emergency
management work, allocated and implemented the tasks and
responsibilities at various levels, conducted diversified emergency
training drills, increased the efficiency of coordination among
various units and completed the emergency plans, striving to
continuously increase the overall level of emergency management and
emergency response capabilities.
1 Intensifying the organization and leadership of emergency
management work, allocating and implementing
the tasks and responsibilities at various levels
2 Overall planning and taking into account the key points of
emergency work, refining emergency procedures, plans and
checklists, and improving the revision of emergency training
manuals
3 Optimising the emergency plans, clarifying working processes,
job responsibilities and disposal methods and continuously
strengthening the systematicness, scientificity and completeness of
plans in order to improve the overall level of emergency
management
Reinforcing emergency response capabilities
Guaranteeing Safe Operation
Air China has incorporated the concept of "safety first" into
every operation link and propelled the upgrading of machine
equipment and technological innovation to strengthen the
construction of maintenance capacity and hence ensure the
continuous and safe operation.
Speeding up model updates
Air China replaced old aircraft in time and actively invested in
new types of equipment to improve safety margins and ensure flight
safety and reliability. In 2018, Air China Group introduced a total
of 50 aircrafts and retired 21 aircrafts.
669aircrafts Number of passenger aircraft (including business
jets)
6.62years The average aircraft age
Air China's aircraft delivery ceremony in Toulouse, France,
marking Air China as the first airline to operate the Airbus A350
series in mainland China
Advancing the development of maintenance capabilities
Air China increased technological innovation and R&D support
to facilitate the deep integration of the maintenance system,
established a plan to reshape the quality system and started the
integration of quality management systems to consolidate the
foundation of safety and quality management and further developed
the maintenance system and technology application to improve the
efficiency of troubleshooting and enhance flight safety
capabilities.
Case Optimal design of full-lifecycle engineering management of
engines
In the process of full-lifecycle engineering management of
engines, Dalian Airlines always adheres to the innovative way and
prospective vision to improve and upgrade its management work.
Dalian Airlines centralized the work on daily management of engines
through the engine replacement, overhaul policy adjustment and
others, and further explored the inner connections among different
tasks so that a comprehensive and scientific full-lifecycle
engineering management of engines had been established to replace
the existing on-condition management model. Moreover, It solidified
the working foundation and actively sorted out the deficiencies in
the existing work, thereby improving the forward-looking work
related to the engine engineering management. It also cultivated
and reserved relevant talents for engine engineering management for
itself bringing effective protection for the healthy
development.
Cultivating Safety Culture
Air China conducted various forms of safety training and
education and safety propaganda to comprehensively enhance the
awareness of responsibility on the safety of staff at all levels
and further elevate the mastery of safety management methods of
safety management personnel, and established the "Pilot Style
Technical Archives". The Company also carried out special safety
publicity campaigns for flight personnel and control personnel on
flight maneuvering capabilities, and actively popularised aviation
safety knowledge among passengers to help passengers to enhance
their travel safety awareness and make a joint contribution to the
construction and maintenance of aviation safety.
In 2018, Air China offered safety training to pilots for 48,867
person-time with a total training time of 207,551 hours, and
completed simulator re-training for 12,890 person-time, emergency
re-training for 5,910 person-time and dangerous goods re-training
for 2,077 person-time.
Cabin Service Department organized flight attendants to receive
safety training
Economic
Responsibility for
Stakeholders
By adhering to the concept of sustainable development, Air China
optimized business strategy and attached importance to value
creation to protect the rights and interests of investors, striving
to achieve stable, high-quality and efficient operations and create
shared value by working with upstream and downstream stakeholders
in the value chain.
Supporting the UN 2030
Sustainable Development Goals
Air China pursued high-quality development and safeguarded the
rights and interests of investors. The Company recorded the annual
revenue of RMB136.774 billion, representing a year-on-year increase
of 12.70%
The Company attended the first China International Import Expo,
held supplier communication meetings to enhance communication
between partners, and signed 8 letters of intent with 7
suppliers
Creating Economic Value
Air China improved resource allocation by insisting on new
development concepts and focusing on high quality development
requirements, continued to facilitate economic linkages across the
country by expanding the hub network and adhered to the principle
of discussion and collaboration with stakeholders to build an open
sharing economy.
Safeguarding the returns of investors
The Company protected the investor's rights to know, made
decisions and distributed profits in strict compliance with laws
and regulations and relevant regulatory requirements, and strove to
become a reliable and trustworthy partner for investors. In 2018,
the Company realized revenue of RMB136.774 billion, representing a
year-on-year increase of 12.70%, and a total profit of RMB9.958
billion. Air China has a strong ability to continuously pay cash
dividends. In 2018, the Company ranked 66th in the List of 'Listed
Companies in Generous Returns' of China Securities Regulatory
Commission.
Promoting economic development
Air China continuously enhanced the operational efficiency and
quality of hubs and provided more transfer opportunities and
convenient services for passengers, help driving local economic
development. As of the end of 2018, the Company, Shenzhen Airlines
(including Kunming Airlines), Air Macau, Beijing Airlines, Dalian
Airlines and Air China Inner Mongolia were operating 754 passenger
routes, including 138 international routes, 27 regional routes and
589 domestic routes. The above passenger routes reached 42
countries (regions) and 184 cities, including 66 international
cities, 3 regional cities and 115 domestic cities.
Expanding hub network
By actively practicing the "Belt and Road" initiative and
participating in the construction of national strategies such as
the coordinated development of the Beijing-Tianjin-Hebei region,
the construction of the Guangdong-Hong Kong-Macau Greater Bay Area
and the development of the Yangtze Economic Belt, Air China
accelerated the development of Beijing into a world-class aviation
hub and the transition of Beijing Airlines into a synchronous
operation of business aviation and public transport aviation, and
facilitated the development of the Greater Bay Area cross-border
e-commerce joint venture projects of Hong Kong. In 2018, Beijing
hub newly launched international routes such as Beijing-Copenhagen
and domestic routes such as Beijing-Huizhou, and boosted the flight
frequency on the routes of Beijing-London and others, which
expanded its flight size and route network.
Diversifying transit products
Air China improved the transit service quality in its hubs by
diversifying and upgrading transit products. In 2018, Air China
enriched its transit accommodation products to meet the different
accommodation needs of transit passengers. We launched
Beijing-Munich and Beijing-Hong Kong express products, expanded the
coverage of our transit lounge service at Shanghai Pudong
International Airport, started to offer intra-city chauffeured
transfer services in 10 cities including Tianjin and Xi'an and
inter-city transfer services in Beijing, Shenzhen, Shanghai and
Chengdu.
On 5 April, the route of Beijing-Houston-Panama City was
officially launched
On 2 November, Beijing-Munich and Beijing-Hong Kong express
products were launched simultaneously
A Win-win Relation with Partners
By closely following the development trend of the global
aviation industry and based on the Company's business development
environment and business model transformation, Air China strove to
explore relevant business development opportunities and deepened
the strategic alliance with upstream and downstream players with a
win-win concept to promote development through an open attitude, so
as to sustain the development vitality.
Promoting the cooperation with partners in the same industry
Air China actively participated in industry exchanges, shared
resources with peers and learnt from each other for mutual benefits
and win-win results, achieving continuous common growth. In 2018,
Air China signed a joint venture agreement with Air Canada and
joined the Winter Olympics Partner Club, by leveraging on
respective strengths, all parties could enhance the core
competitiveness and achieve common development.
On 10 May, Air China made debut at the first China Independent
Brand Expo
On 6 June, Air China and Air Canada signed the first joint
venture agreement between China and North American air carriers
Strengthening supplier management
Air China integrated the concept of social responsibility into
the supply chain management system and firmly promoted open
procurement and sunshine procurement. The Company further improved
the regulations concerning supplier selection, access management
and annual performance appraisal to ensure the good operation and
maintenance of supplier information base, and established a good
cooperative relationship with suppliers to work together to achieve
sustainable development.
As of the end of 2018, Air China admitted a total of 2,451
suppliers, and completed the annual performance evaluation of a
total of 1,924 suppliers, including 1,590 domestic suppliers and
334 foreign suppliers.
On 7 November, Air China signed a letter of intent on
procurement with an internationally renowned company at the first
China International Import Expo, with a contract value of US$396
million
Environment Responsibility for Green Aviation
The Company adhered to the green development concepts and
formulated the 'Three-Year Action Plan to Win the Blue Sky
Protection Campaign'. Through establishing and improving a sound
management system, creating a green operational model, increasing
investment in green support, participating in the design of green
mechanism, promoting environmental protection public welfare
projects and other measures, the Company strived to improve the
utilization rate of resources and energy, and reduced the impact of
production and operation on the environment.
Supporting the UN 2030 Sustainable
Development Goals
Creating a green operational model with the fuel consumption of
2.74 tonnes/ten thousand tonne-kilometers in 2018
Increasing the proportion of new energy via New Energy Vehicles
and photovoltaic power generation
Sustainable management and efficient use of resources to reduce
waste generation
Establishing and Improving Management Systems
the 10th Five-Year the 11th Five-Year the 12th Five-Year the 13th Five-Year
Plan Plan Plan Plan
Fuel conservation Energy Conservation Environmental Affairs Environmental Affairs
management and Emission Reduction Management Management
Management
Established the Established a designated Initiated the 'Three-Year
Fuel Conservation Designated full-time department of environmental Action Plan to Win
Management Committee staff to energy affairs the Blue Sky protection
conservation and campaign'
Promulgated the emission reduction Established an energy
interim regulations office management system Established the
on fuel conservation and completed energy leading group of
Established energy management system ecological environmental
Carried out fuel statistics, monitoring certification protection
conservation work and reporting systems
Participated in Carried out comprehensive
Followed the assessment EU-ETS and carbon investigation and
indicators of the trading in Beijing treatment of pollution
SASAC prevention and control
Carried out energy
Deepened the promotion conservation and Established and
of fuel conservation emission reduction improved the management
measures technical transformation measures on energy
projects conservation and
emission reduction
Carried out aviation and ecological environmental
biofuel test flight protection
Participated in Participated in
the international the formulation
expert working group of domestic and
of carbon emission international carbon
offset mechanism emission reduction
mechanisms as a
member of the expert
group
Promoted the capacity
building of centralized
management on carbon
assets
Completed the upgrade
and recertification
of energy management
system
------------------------- ----------------------------- ------------------------------
Creating a Green Operational Model
Through continuously optimizing fleet and route network
structure, implementing and exploring fuel conservation measures
and improving operating efficiency of passenger aircraft, the
Company worked hard to reduce aviation emissions and improve
aviation fuel efficiency, and actively created a green operational
model.
Optimizing Fleet Structure
Through the continuous introduction of high-efficiency models,
the Company phased out old-aged aircrafts and built a young and
technologically advanced fleet to improve fuel efficiency of the
fleet. As of the end of 2018, details of the fleet of the Company
were set out below:
Average Average
Finance Operating age Finance Operating age
Sub-total Self-owned leases leases (year) Sub-total Self-owned leases leases (year)
Passenger Cargo
aircraft 664 276 188 200 6.62 aircraft 15 10 5 0 11.54
B747F 3 3 0 0 16.53
B757F 4 4 0 0 22.35
Airbus 329 136 94 99 7.04 B777F 8 3 5 0 4.26
A319 45 32 6 7 11.64
A320/A321 214 76 75 63 6.35
A330 64 28 7 29 6.75
Business
A350 6 0 6 0 0.23 jets 5 1 0 4 6.41
Boeing 335 140 94 101 6.21
B737 283 116 74 93 6.46
B747 10 8 2 0 9.47
B777 28 4 18 6 4.71
B787 14 12 0 2 1.86 Total 684 287 193 204 6.73
Note:
On 28 December, the Company completed the disposal of 51% equity
interests in Air China Cargo to China National Aviation Capital
Holding Co., Ltd., and since then the Company ceased to own the 15
freighters listed above.
Airbus A350-900 aircraft of Air China successfully made its
maiden flight
Optimizing Fuel Conservation Measures
Since the Company launched the fuel conservation project in
2004, operating in a fuel conservation way had become an important
part of our daily operation management. In 2018, by continuously
deepening the implementation of fuel conservation measures, we
effectively saved about 9,205 tons of fuel and reduced fuel costs
by more than RMB40 million.
Improving Operating Efficiency of Passenger Aircraft
In order to improve the overall operating efficiency of the
passenger aircraft and further improve fuel efficiency, Air China
initiated special efforts to improve the profitability of
bellyhold. A series of effective measures had been taken, including
the promotion of wide-body passenger aircraft post-replenishment
business, improving baggage and cargo loading efficiency, improving
the accuracy of preloading and the targeted sales of bellyhold, and
therefore, the load factors of the bellyhold was improved and
maintained at a historically good level, and the fuel efficiency of
the passenger aircraft was continuously enhanced. The fuel
consumption per tonne kilometre decreased for three consecutive
years.
Improving the Utilization Rate of Aerobridge GPU
Since 2006, Air China had been vigorously promoting the use of
Aerobridge GPU to replace aircraft APU operation, and reduced fuel
consumption and ground emissions by improving the utilization rate
of Aerobridge GPU. Up to now, the Aerobridge GPU had been applied
in 24 domestic terminals, including Beijing, Shanghai Hongqiao,
Shanghai Pudong, Guangzhou, Shenzhen, Chengdu, Chongqing, Wuhan,
Guiyang, Wenzhou, Hangzhou, Xi'an, Kunming, Jiuzhai, Zhuhai,
Shantou, Nanning, Haikou, Xining, Lanzhou, Shenyang, Guilin,
Yuncheng and Urumqi.
Increasing Investment in Green Support
Compared with production-oriented enterprises, aviation
companies produce fewer pollutants from the ground, but the waste
gas, waste water and hazardous waste generated by maintenance
process in various production and operation activities still
inevitably impact the environment. The Company proactively
identified, prevented and managed pollutants generated during the
operation in order to promote environmental compliance and fulfill
environmental protection obligations.
Vehicle pollution prevention
In 2018, the Company focused on the emission control of existing
diesel vehicles and promoted the conversion of energy structure of
vehicles through mass promotion of application of New Energy
Vehicles and successfully reduced vehicle exhaust gas emissions. In
terms of vehicle emission control, the Company planned to invest
RMB24 million to install a vehicle pollutant control device (DPF)
for diesel vehicles in the Capital Airport to achieve the full
emission compliance of diesel vehicles. In terms of application of
New Energy Vehicles, from 2016 to 2017, the Company's relevant
demonstration operation achieved good results, and verified the
feasibility and guaranteed capability of the special vehicles. In
2018, the Company actively overcame the bottlenecks about generally
insufficient charging base in various airports, accelerated the
pace of the New Energy Vehicles projects through self-built
charging infrastructure and the pace of phasing out fuel vehicles
with electric vehicle.
The management of Air China's new energy vehicles in 2018
Case Working together to build green civil aviation and win the
Blue Sky Protection Campaign
On 6 November, CNAHC and Sichuan Airport Group signed the 'Green
Civil Aviation Energy Conservation and Emission Reduction
Cooperation Framework Agreement'. Both sides would conduct in-depth
cooperation by turning ground special vehicles into new energy
vehicles, promoting airport ground operation to ensure energy
conservation, APU electric energy replacement and exploration and
trial of civil aviation energy-saving and emission reduction
technologies in Chengdu Shuangliu international Airport and Chengdu
Tianfu International Airport, for the purpose of working together
to win the Blue Sky Protection Campaign.
Management of waste materials
Waste materials, including waste oil, mineral oil and chemicals
produced during the painting process, are mainly generated during
aircraft maintenance. These wastes were disposed by the qualified
hazardous waste disposal unit in accordance with the relevant
provisions on hazardous waste management. The Company have also
established a hazardous waste management system and adopted
advanced equipment, technologies and processes to reduce hazardous
wastes produced and used during production and operation. For the
non-hazardous wastes produced during flights, such as newspapers,
magazines, tableware, headphones and other cabin wastes, Air China
would recycle them or engage a professional waste disposal company
to carry out harmless treatment.
Case AMECO energy-saving upgrading has achieved positive
result
In 2018, Aircraft Maintenance and Engineering Corporation
(AMECO) remodeled the lighting equipment of the hangar by replacing
the ageing metal halide lamps with LED lamps, saving about 300,000
to 330,000 kWh per year. In addition, AMECO invested more than
RMB2.6 million to renovate the employees' bathrooms by reducing the
cooling energy consumption in the form of heat pump recovery. It
was expected to reduce natural gas consumption by 292,000 cubic
meters per year and reduce carbon dioxide emissions by 457.89 tons
per year.
Water resources management
The canteen wastewater was discharged after oil separation and
biochemical treatment. Industrial wastewater was collected to
wastewater treatment stations for treatment and was discharged
after meeting relevant requirements. We engaged a qualified
third-party testing agency to conduct sewage testing at the
Company's general outfall on monthly basis, and all test results
were up to standard by the end of 2018.
Participating in the Design of Green Mechanisms
Under the leadership of the Civil Aviation Administration of
China, the Company has always paid close attention to and
extensively participated in the preliminary work of the domestic
and international carbon market and has given full play to its role
of advice and assistance as the leading airline in the formulation
of industry rules, making positive contributions to the design of
China's civil aviation carbon trading mechanism and response to the
international aviation carbon emission reduction.
Accumulating rich experience in carbon trading at home and
abroad
EU carbon trading: Since 2007, the Company has actively
cooperated with the Civil Aviation Administration of China to deal
with EU-ETS. Through an in-depth study of EU-ETS laws and
regulations, Air China has independently developed its own
monitoring plan, implemented monitoring and prepared monitoring
reports, and accumulated a lot of experience. It is one of the few
enterprises in China that has the ability to conduct EU carbon
trading, laying the foundation for further participation in the
global aviation carbon emission reduction mechanism.
Beijing carbon trading: A total of three companies under Air
China Group were included in the list of key emission units of
Beijing in 2017, with a total carbon quota of 102,900 tons. Through
centralized management, the Company successfully completed its
commitment and also continued to promote the building of its carbon
asset centralized management capabilities.
Actively participating in the design of carbon emission
reduction mechanisms at home and abroad
International carbon emission reduction: In response to
international aviation carbon emission reduction and under the
unified leadership of the Civil Aviation Administration of China,
Air China dispatched staff to participate in the expert group on
Global Marketization Emission Reduction Mechanism of the
International Civil Aviation Organization (ICAO), and actively
cooperated with the Chinese project team to participate in the
relevant work of the international aviation emission reduction
mechanism.
Domestic aviation carbon emission management: Air China joined
the carbon emission expert working group of the Civil Aviation
Administration of China to closely participate in the preparation
of carbon emission management documents including measuring,
reporting and verification (MRV) and sustainable aviation fuel,
producing a profound impact on the future development of energy
conservation and emission reduction in the aviation industry.
Promoting Environmental Protection Public Welfare Projects
Protecting the environment is the eternal theme of mankind. The
Company adheres to the environmental protection concept of 'green
operation and sustainable development' and implements green office
and environmental protection training, and also supports national
green and environmental protection undertakings through
environmental public welfare activities such as ecological poverty
alleviation, photovoltaic industry and green-theme flights.
Case Sonid Right Banner photovoltaic poverty alleviation power
station project
The first village-level photovoltaic poverty alleviation power
station project in Sonid Right Banner is a key support project of
Air China. Air China has funded a total of RMB12.07 million in the
process of helping to establish a village-level photovoltaic
poverty alleviation power station with a total installed capacity
of 7.759 megawatts. The project has achieved grid-connected power
generation.
Case Taking action to build the 'Green Life and Beautiful
Home'
On 23 April, for celebrating the one-year countdown to the 2019
Beijing World Horticultural Exposition ('Beijing World
Horticultural Exposition'), Air China hosted the theme flight of
'Sharing Green Dreams' on the 'Colorful World Horticultural
Exposition' painted aircraft, and distributed 'Dream Seeds' and
World Horticultural Exposition memorials to passengers in order to
deliver the beautiful vision of Beijing World Horticultural
Exposition 'Green Life and Beautiful Home' with practical
actions.
Case 2018 'National Low Carbon Day' theme promotion
On 13 June, as the official partner of the Beijing 2022 Winter
Olympics and Winter Paralympics, Air China participated in the 2018
'National Low Carbon Day' theme promotion event jointly sponsored
by the Ministry of Ecology and Environment, Beijing Winter Olympics
Organizing Committee and Beijing Municipal Government. The Company
signed the 'Low Carbon Initiative' and launched the Low Carbon
Winter Olympics initiative with other official partners of Winter
Olympics, demonstrating Air China's responsible image of low carbon
and environmental protection.
Social Responsibility for a Better Life
Remaining true to our original aspiration and keeping our
mission firmly in mind, we continuously improve our service level,
pay attention to staff development and rights protection, actively
assume social responsibilities and persistently strive to meet the
people's growing needs for a better life with the devotion and
commitment of realizing the Chinese Dream of the great rejuvenation
of the nation and the people's yearning for a better life.
Supporting the UN 2030 Sustainable
Development Goals
Paying attention to staff's
physical and mental health
and continuing to promote the
'Happiness -- Heart Program'
for staff
Formulating the 'Special
Collective Contract for
Protection of Female Workers'
Rights and Interests'
Protecting labor rights,
combating discrimination
and eliminating child labor
and forced labor
Ensuring equal
opportunities and
achieving equal pay for
equal work
Improving Service Quality
Air China has continuously improved its management system,
focused on the passenger experience, promoted innovative services
and implemented the policy of 'global benchmarking, full process
governance, and full-chain coverage'. Guided by the application of
new technologies, we guarantee the normal operation of flights,
improve passenger satisfaction, safeguard the rights and interests
of passengers and continue to lift product and service levels with
a view to creating first-class services.
Completing the service management system
The Company continues to revise the service management system,
sorts out the product and service contact points in the whole
process and formulates relevant service standards, and also
convenes the case analysis meeting to improve the service-related
system, promotes the service authorization mechanism and perfects
the ticketing rules to elevate the service management level.
Air China's main measures to improve service management in
2018
Promoting the development of service innovation
Innovation is an important means for Air China to deliver
heartfelt services to passengers and enhance service reputation. In
2018, the Company further expanded its intelligent and self-service
applications to enhance the travel experience of passengers.
Ground service
Intelligent Launching intelligent interactive
robots on the official website and
mobile platform, the automatic booking
function for special services such
as unaccompanied children, special
meals and baby cradles, and Apple
Pay payment function available on
the mobile platform
Self-service Becoming the first airline in China
to launch a one-stop full self-service
baggage service area; electronic
boarding pass services available
at Air China's 45 domestic sites
and 8 international (regional) sites;
and launching the first involuntary
signing and rescheduling services
for self-service channels in the
industry, improving the cancellation
and rescheduling service abilities
of all channels
----------------------------------------
Cabin service
Creating diversified boutiques
Establishing a catering expert committee and launching regional
dishes such as 'Belt and Road' and 'Huaiyang Style'; and launching
the exclusive music of Jin Feng's song 'Let Love Exist on the Road'
to expand on-board products from taste, hearing and vision
Upgrading the qualifications of all levels of personnel to meet
production needs according to A350 new models introduced and route
arrangements, to ensure smooth flight operations
Deepening data application
Deepening the application of the existing mobile terminal 'Air
China Wing', creating an electronic business process and developing
a passenger preference information collection module; and launching
the cabin electronic flight package C-EFB covering 29 various
manuals and regulations, setting up the 'Air China Baby' system
platform, initiating the electronic operation of the CIP passenger
list, and unblocking service information exchange channel between
ground and air services. Integrating APP and 'air-to-ground'
service data to form 'Internet+' and full-process service blend,
set up a 'cloud database' for passenger services, improve service
process monitoring and achieve precise services. Continuing to
promote the scan code operation for dining cars and setting up a
special ledger
Guaranteeing the normal operation of flights
Guaranteeing the normal operation of flights is the key to
improving passenger satisfaction. In order to further improve the
normal flight rate, Air China strengthened its management and
adopted a series of measures to ensure that its normal rate would
be higher than the industry average. In 2018, Air China's flight
normal rate was 80.36%, which was 0.23 percentage points higher
than the industry average.
Case Our operation and control center reinforcing the operation
and control management to ensure normal operation of flights
As the 'strongest brain' of Air China, the operation and control
center plays a key role in the services for passengers. Its main
duties include preparing, reporting and publishing the Company's
flight operation schedule and monitoring flight dynamics; and
analyzing abnormal operations, and promptly determining and
implementing flight adjustment, postponement, cancellation and
other actions after taking into consideration of factors such as
aircraft, crew and passenger and cargo supply.
Operation and control system
In case of large-scale delays or other emergencies of flight,
the operation and control center needs to organize and implement an
emergency mechanism to take appropriate measures to improve the
normal flight rate through three stages: analysis and evaluation,
flight handling and flight resumption.
Launching contingency plans for flight delays or other
emergencies
Protecting rights and interests of passengers
Complaint handling Customer satisfaction Privacy protection
Air China has a comprehensive In 2018, there was no Air China ensures the
passenger complaint responding mass service incident safety of personal information
mechanism to ensure that caused by the Company, of passengers and strictly
passenger complaints and the overall service controls the use of personal
are resolved promptly satisfaction of passengers information of passengers.
and satisfactorily. In reached 90.6 points, Detailed Air China Privacy
2018, the Company handled recording an increase Policy has been published
a total of 13,450 complaints of 2.6 points year-on-year on the official website
from passengers and mobile APP for the
understanding of passengers,
and information encryption
technology has been applied
to the transmission of
personal information
so as to ensure the safety
of personal information
Case A heart transplant operation and a second life
On 22 May, after the registration of CA1682 flight from
Mudanjiang to Beijing had been closed and passengers started to
board normally, the Company received messages from Zheng Yuren, a
passenger who was about to undergo a heart transplant operation,
that he was on his way to the airport but expected to be about 30
minutes late. He hoped that Air China could provide assistance in
the spirit of humanity.
Based on the medical information provided by Zheng Yuren and the
actual situation at that time, Air China staff decided to postpone
the departure time of CA1682 flight after obtaining other
passengers' understanding, and waited for Zheng Yuren while
carrying out relevant on-site preparation. The CA1682 flight took
off from Mudanjiang at 22:21 eventually. Although the flight was
delayed by 1 hour and 6 minutes, Air China managed to secure
valuable time of organ transplantation for the patient.
Air China staff actively coordinated the arrangement of
flights
Boosting Employee Development
Air China has always adhered to the people-oriented principle by
fully safeguarding the legitimate rights and interests of
employees, and continuously innovating our talent management
mechanisms and training systems, in order to provide employees with
broad promotion channels and development platforms, and the Company
also cares for employees' life and health and strives to create an
inclusive, diversified and harmonious environment for them. In
2018, Air China had 28,302 employees including 1,147 new employees,
and female accounted for 17.07% of the whole management.
Protecting fundamental rights and interests
Air China strictly abides by the Labor Contract Law of the
People's Republic of China and other applicable laws and
regulations, and upholds an open and fair talent diversity
strategy, opposing discrimination, insisting on the principle of
same pay for same work, avoiding child labor and forced labor,
advocating democratic management, protecting the rights and freedom
of the staff, establishing competitive remuneration management
system and ensuring high quality of life for employees.
In order to build a harmonious and stable labor relationship and
promote the corporate development, in accordance with relevant laws
and regulations and our latest internal rules and regulations, Air
China has formulated the sixth version of Collective Contract, the
second version of Special Collective Contract for Protection of
Female Workers' Rights and Interests and the second version of
Labor Safety and Health Special Collective Contract. Through
collective negotiation process, opinions from the negotiating
representatives and employee representatives were extensively
solicited, and equal dialogue with employees was conducted to
effectively protect and safeguard the legitimate rights and
interests of employees.
Motivating employees to grow
Air China attaches great importance to the growth of every
employee and is committed to improving the comprehensive
capabilities of the employees, stimulating their creativity and
opening the development channels for its employees. Air China
provides employees with a high-level and high-vision development
stage, carries out special training, and designs and implements
various training programs with specific purposes. Through the
combination of online and offline methods, we continuously improve
the employees' understanding of political theories and
comprehensive capabilities so as to help employees realize their
own value. In 2018, Air China realized the unified training for the
ground service personnel, which was the first time in the Company
and the industry, and completed the training for 283 persons in 8
sessions, which was highly praised by all units and
participants.
Leadership training International talent Online light training
exchange on leadership
Innovation program for Senior management personnel Online Study of the 19th
general managers going to United Airlines Party Congress Party
for training and exchange Constitution Open Course
Excellent operation program
for senior managers Junior and middle management Online micro-learning:
personnel going to Cathay daily study of current
Training program for Pacific for training affairs, weekly Party
young cadres and exchange lessons and monthly management
lessons
Training program for Young cadres going to
management trainees Singapore for training Online live lecture program
and exchange
WeChat community sharing
Management trainees going and learning
to Cathay Pacific for
training and exchange
Helping employees improve their capabilities
Air China adheres to the socialist core values to guide the
staff, vigorously promotes the spirits of model workers and
craftsmen, facilitates the construction of the knowledge-based,
skill-based and innovative staff team, and encourages employees to
actively participate in the Company's reform and development.
Case Cultivating and electing model workers and craftsmen
In 2018, Air China actively selected model workers and craftsmen
to create a professional atmosphere of aspiring to excellence and a
working environment of advocating devotion. Through various methods
such as holding conferences, symposiums and documentary filming,
the spirits of the model workers and craftsmen will be promoted in
an all-round way, so that the model workers and craftsmen can stand
out as the exemplary roles for other staff.
Liu Yanling (middle), a winner of the National Labor Medal,
sharing work experience with colleagues
Case Actively setting up innovation studios of model workers and
craftsmen
In 2018, Air China vigorously developed innovation studios led
by model workers and craftsmen. The Company selected and cultivated
30 company-level model worker and craftsman talent innovation
studios and gave full play to the guiding and leading role of model
workers and craftsmen to disseminate advanced professional skills,
innovative methods and management experience. Such studios build a
platform for employees to learn and exchange and overcome
difficulties, improve the innovation ability of employees, and
promote the transformation and application of outstanding
innovation results.
Craftsman-type talent Ping Li (middle) and i-Design Innovation
Studio led by her
Case The systematic holding of vocational skills competitions
for employees
In 2018, Air China hosted the 14th Staff Position (Airline
Ticket Seller) Vocational Skills Competition. Nearly 4,000
employees in the ticket sales field actively participated together
with 104 volunteer participants. In the end, 10 participants, 3
participants and 2 participants were awarded the 'Technical Expert
of CNAHC', the 'Technical Experts of State-owned Enterprises' and
the 'National Civil Aviation Technical Expert', respectively. We
organized 26 employees including air marshals of our Group as well
as winners of skills competitions for aviation catering post and
the national civil aviation maintenance post to respectively visit
Hong Kong Cathay Pacific Airways, Japan ANA and United Airlines for
study and exchanges.
Contestants were exhibiting the marketing planning in the final
of the passenger service marketing professional skills
competition
Case Continuously deepening team building
In 2018, Air China continued to strengthen team building and
training for team leaders. We organized the evaluation of the
demonstration teams and selected and commended 100 outstanding team
leaders so as to give play to the guiding and leading role of
excellent groups; increased the exchanges and cooperation between
the teams to promote the sharing and promotion of internal
knowledge and experience; established a quality model of team
leaders to provide a basis to select, evaluate and cultivate team
leaders; and organized the eighth session of training for the
excellent team leaders and the fourth session of training for the
new team leaders with a total of 220 grass-root team leaders
participating.
Excellent team leaders of 2018 in the exchanges and training
Caring for employees' lives
Air China adheres to the people-oriented principle and pays
attention to the physical and mental health of employees. Air China
establishes health records for employees, clarifies systems on
occupational disease protection and supervision and rescue
measures, continuously promotes the 'Happy -- Heart Program' for
employees, and improves the supporting mechanism for special groups
to make the employees in difficulty and female employees feel our
solicitude. Air China also carries out a variety of cultural and
sports activities so as to balance the work and life of employees
and enhance their cohesiveness and sense of belonging.
Employee service Safeguarding health Caring for special Colourful spare
center and safety groups time
Continuing to deepen Continuously promoting Registering 494 Organizing staff
the shared service the 'Happy -- Heart employee households sports meeting
platform Program' for employees in difficulty Organizing basketball,
Integrated construction Carrying out 88 Expressing sympathy swimming, fitness
and completing a sessions of training and solicitude for activities
number of personalized on mental health 230 employees in Holding arts festivals
customization 4, 200 trainees difficulty and other activities
38,287 registrants 98.5% of satisfaction Making donations
and 94.6% of satisfaction rate in cash and kind
rate worth RMB746,000
Newly adding four
"caring mothers
huts"
Issuing the female
employees' allowance
of RMB910,000
Staff sports meeting
Staff arts festivals
Case Employee service center to improve employees' experience
and satisfaction
Air China continues to deepen the construction of employee
service center, establishes sound employee service mechanism,
improves service standards and builds employee service systems, and
standardizes service contents, innovates servicing forms and
streamlines business processes to continuously improve employees'
experience and satisfaction.
In the principle of 'Employee Service Center Servicing
Employees', in 2018, WeChat platform of the employee service center
exerts the brand appeal to continuously innovate contents and
improve quality of articles by focusing on the needs of employees
and the Company's business, meeting the various needs of employees
in work and life, publicizing the Company's policies and systems
and cooperating with all units to do well in publicity. By the end
of 2018, the number of followers of the WeChat platform of the
employee service center had increased to 38,287, the influence and
attention continued to improve. The platform has become a bridge
between the Company and employees, serving the Company and
employees in a better and faster way.
Community Involvement
Air China actively fulfills responsibilities as a social citizen
and devotes to create a social environment featuring harmony,
beauty and friendliness. Air China has exerted advantages to build
a bridge of cultural exchanges and dissemination of welfare with
other nations by the Company's air route network across the world.
As a partner of Air Passenger Transport Service of the 2022 Winter
Olympics and Winter Paralympic, Air China actively practices and
disseminates the spirit of Olympic. At the same time, based on the
community development, we give assistance to the disadvantaged
groups and achieve the sustainable development of public welfare
undertakings and education services by a variety of forms, such as
launching a series of activities of 'Air China into the Campus' and
forging the 'Air China Blue Sky Class' volunteer service brand,
thereby making contribution to the harmonious development of local
communities.
Disseminating the Olympic Spirit
As a partner of Air Passenger Transport Service of the 2022
Winter Olympics and Winter Paralympic, Air China actively practices
and disseminates the spirit of Olympic and gives full play of
advantages to help the vigorous development of sports.
Case Launching the 'Flying Ice and Snow Experience' Event
In response to the Beijing 2022 Winter Olympics and support the
'300 million people having fun on the ice' program, Air China
launch a new journey to serve the Beijing 2022 Winter Olympics and
Winter Paralympics. From 14 to 16 December, Air China hosted the
'Flying Ice and Snow Experience' Vibrant Winter Olympics College
Ski Experience Event, and invited nearly 80 southern passengers
from Guangzhou, Chongqing, Shanghai, Hangzhou and Chengdu to take
our flight and enjoy an icy journey in the winter.
Case Sandboarding Boy
The 9-year-old boy,Wang Zhihao, comes from Gansu and lives near
the Tengger Desert. This little boy grew up in the desert. He has
never seen snow, but loves skiing so much that he has been
practising skiing on the desert with a homemade sand board. He
always dreams of becoming a skier, attending the Winter Olympics
and bringing glory for his country by winning a gold medal. At the
beginning of 2018, Air China helped Wang Zhihao to visit the venue
of the 2022 Winter Olympics and started his dream trip. He realized
his dream of practising skiing in the snowfield. After countless
falls, he finally managed to slide down the snowy mountain.
Campus public Welfare
Air China cares about the youth. The Company fully integrates
internal and external resources to set up a stage for the younger
generation and cooperates with colleges and universities to carry
out a series of activities as themed by 'Air China into the
Campus', and with moral education as guideline, in order to help
colleges and universities carry out education of welfare, practice
and assistance.
Case Air China Entering the Campus to Pass Love and Warmth
In 2018, Air China cooperated with Tsinghua University, Renmin
University of China, Beijing Foreign Studies University and other
colleges and universities to carry out a series of activities as
themed by 'Air China into the Campus', which rendered convenience
to college students for their travel by introducing 90% off standby
tickets products.
Opening a Green Channel for New Students from Poverty-Stricken
Areas
On the occasion of the enrollment of 2018 freshmen, we
cooperated with the Renmin University of China and Beijing Foreign
Studies University to carry out the 'Green Channel for New
Students' activities, and offered 90% off economic-class tickets
and travel assistance for 48 directional freshmen of grade 2018 of
the two schools from national rural poverty-stricken areas.
Public Welfare knowledge Contest Program
We joined hands with Beijing People's Broadcasting Station Youth
Radio FM FM98.2 to create the 'Air China into the Campus "I Love My
Country' public welfare knowledge contest program. Through answers
to urban civilization, ecology and tourism of destinations, such
program emphasized the theme of 'protecting the green planet, we
are flying green, and Air China brings you closer to more beautiful
nature'.
Freshmen's Testimonial
'This is an activity, which is full of love and warmth. We are
happy thanking the teachers from Air China Limited for their
care.'
--Dili Sharan, freshman of 2018 Chinese Language and Literature
Department,
Beijing Foreign Studies University
'As a freshman, I am anxious about adapting to a brand new
environment and going to the new school without troubling my
parents too much. In addition to the company of the school, I would
like to thank Air China staff for helping us with baggage check-in
and leading us to the boarding gates as well as the flight
attendants for their kindness. Thanking to the help from Air China,
the distance between home and school becomes shorter and a new
journey of my own begins.'
--Peng Longjun, freshman of 2018 Spanish Department, Beijing
Foreign Studies University
Building a Cultural Bridge
Air China attaches great importance to cross-cultural exchanges,
exerts aviation advantages to conduct cultural exchange activities,
and relies on the brand power to expand the impact of public
welfare. While striving to become a good corporate citizen, we will
actively drive all social sectors to promote the sustainable
development of undertaking of cultural exchanges.
Case Air China supporting the Versailles Royal Run
In 2018, during the 7th 'French Versailles Royal Trail Running',
Air China became the official partner of the Versailles Royal Run
and held the China cultural tourism promotion campaign under the
framework of the Sino-EU Tourism Year. Through the on-site layout
of the Great Wall-background photo walls, the entrance gates with
'Beautiful China' and Air China logos, 'Sino-EU Tourism Year' logo
banners and the joint propaganda booths of Air China and Tourism
Administration of China in France, the Chinese cultural tourism
elements had been exhibited in the French palace, and the charm and
style of 'Beautiful China' had been displayed to the French people.
In this way, the French public fully perceived the charm of Chinese
culture and tourism while enhancing the French public's recognition
of Air China's brand.
Case Winter Tour to Tibet -- Sharing the third pole of the
Earth
On 14 December, Air China hosted a signing ceremony of 'Winter
Tour to Tibet -- Sharing the third pole of the Earth' between
Tibet's main travel agencies in Lhasa. During the 'Winter Tour to
Tibet', Air China would increase capacity by means of overtime or
altering aircraft models, and would provide seats and preferential
policies to travel agencies that organized the 'Winter Tour to
Tibet' event. Through the ingenious combination of culture and
tourism, this event used culture to polish Tibet's tourist business
cards, injected cultural souls into tourism, promoted new
opportunities for tourism development, further advanced Tibet's
economic and social development and facilitated ethnic exchanges,
communication and integration. This was also an active
implementation of the 'Boosting Cultural Confidence and Promoting
the Prosperity of Socialist Culture' proposed by the 19th National
Congress of the Communist Party of China and specific practice of
the 'Humanistic Air China' construction by Air China.
Case Fulfill the wish for family reunion
The 4-year-old girl Guoguo lives in Shanghai with her mother and
grandmother, and her father was a foreign aid engineer in Pakistan
and built highways for Pakistan. Since her Dad always stayed
abroad, Guoguo had longed for a chance to see her dad in Pakistan
and find what her father who worked abroad did every day. In 2018,
with the help of Air China, Guoguo realized her dream. She and her
mother went to Pakistan and finally saw her dad who had been
working abroad for a long time. They are very happy and proud of
what her dad does.
Special flight Safety
Air China regards assuming public responsibility as its own
responsibility, and actively undertakes a number of urgent and
dangerous air transportation tasks, demonstrating the mission and
responsibility of the carrier carrying national flag. In 2018, Air
China successfully completed major flights and special charter
missions for the Spring Festival travel season, the National
People's Congress and the Chinese Political Consultative
Conference, the Pyeongchang Winter Olympics and Winter Paralympics,
the China-Africa Cooperation Forum Beijing Summit, the first China
International Import Expo and the 60th founding anniversary of the
Ningxia Hui Autonomous Region and the Guangxi Zhuang Autonomous
Region, and actively participated in social welfare practices,
winning wide praise from various sectors in society.
Case Joining hands with the Red Cross Society of China, Air
China carried children with congenital heart disease in Mongolia to
Beijing for treatment
In response to the country's comprehensive construction of a
moderately prosperous society and to actively participate in the
'Belt and Road' construction and further intensify Air China's
efforts in areas such as poverty alleviation, international
humanitarian assistance, emergency relief, emergency care and
public health, Air China and the Red Cross Society of China held a
strategic cooperation signing ceremony at the Beijing Air China
Headquarter Building in the morning of 15 October.
On 19 November, 58 children with congenital heart disease in
Mongolia took the CA902 flight from Ulaanbaatar to Beijing for
treatment. Air China had dispatched additional manpower and closely
monitored flight information to provide children and their families
with a full-service quality service from air to ground, and Cai
Jianjiang, Chairman and Secretary of Party Committee of Air China
greeted and sent flowers to these children at the Capital Airport.
This support and sponsorship of sending children with congenital
heart disease in Mongolia to Beijing for treatment was the first
operation after Air China and the Red Cross Society of China signed
a strategic cooperation agreement to carry out the 'Belt and Road'
humanitarian relief.
Cai Jianjiang, Chairman and Secretary of Party Committee sent
warmhearted greetings to children and their parents
Signing Ceremony of Strategic Cooperation between Air China and
the Red Cross Society of China
Case Air China's sprit of love support the life extension
Geng Chunqi was from Langfang, Hebei Province, and his
6-year-old child was diagnosed with renal failure a year ago, who
had been relying on dialysis for more than a year to maintain his
life. At 4:42 p.m. on 2 November, Shanghai Changhai Hospital
urgently informed that a kidney source suitable for transplant had
been found, but the child must arrive at the hospital before 12
p.m. on that day. In order to arrive at the hospital in time, Geng
Chunqi sought help from Air China's sales and service center, and
all departments of the Company quickly worked together to develop a
Safety plan. We arranged check-in procedures, coordinated security
check-ups and prioritized the boarding in the Beijing ground
department. We accompanied them and offered care in real time
during the flight, and sent them to the station immediately after
landing. We arranged staff to guide the whole process. That night,
the child arrived safely at the hospital and successfully underwent
an operation. In this life relay travelling thousands of miles, Air
China's associates provided assistance in their own way.
Supporting the disadvantaged
Air China attaches great importance to the care of the
disadvantaged and gathers strength to improve their living
conditions, making them feel the warmth of caring from Air
China.
Case Southwest Cabin Department launching volunteer action for
rural revitalization
Beichuan County was the severely afflicted area of the 5 "12
Wenchuan Earthquake, and Qingpian Township was located in the most
remote area of Beichuan and is currently in the stage of poverty
alleviation. On 28 April, the youth volunteers of the Southwest
Cabin Department of Air China went to Qingpian Township, Beichuan
County after nearly five hours' drive, and carried out caring
activities with local primary schools and also visited the local
villages of Qiang people. Volunteers used practical actions to help
revitalize the countryside, which served to cultivate the
sentiments of Youth League members, and fulfilled their social
responsibilities as young employees from a central state-owned
enterprise.
Case Ground Service Department conducting various charity
activities
Air China's Ground Service Department carried out various
charitable activities to enhance its social values and fulfil its
social responsibilities with love and good deeds. We supported the
designated Beijing Qinghonglan School for migrant workers'
children, and organised our youth staff and Youth League members to
go to the campus to provide lectures and interactive psychological
classes to students for gathering the strength of love. On the
National Day for Helping the Disabled, we took the initiative to
visit the China Disabled Volunteers Association. In addition to
exchanges and experiential interactions with the disabled, we also
raised funds and donated guide robs and wheelchairs to the China
Braille Library, expressing deep concern with practical
actions.
Case Shenzhen Airlines providing educational aid to students of
the historic revolutionary area for nine consecutive years
Since 2010, Shenzhen Aviation Security Department (Air Police
13th Team) has funded the poor students of Jinshan Hope Primary
School in Yudu County, Jiangxi Province, a former revolutionary
base, for nine consecutive years. On 22 November, the department
organized excellent employee representatives to visit Jinshan Hope
Primary School again. With the deep friendship and ardent
expectations of all the staff, they had in-depth exchanges with
teacher representatives and 36 funded students and offered books,
stationery and sporting goods to the children. Through on-site
investigation and communication, they obtained a true and in-depth
understanding of the children's needs and the school's difficulties
and they granted special funds so as to ensure a better education
provided to the children.
Table of Major Indicators
31 December 31 December 31 December
Name of Indicators 2016 2017 2018
Total assets (RMB100 million) 2241.28 2357.18 2437.16
----------- ----------- -----------
Tax payable (RMB100 million) 63.88 70.11 83.32
----------- ----------- -----------
Number of registered aircrafts 623 655 669
----------- ----------- -----------
Average aircraft age (years) 6.36 6.53 6.62
----------- ----------- -----------
Name of Indicators 2016 2017 2018
----------- ----------- -----------
Operating income (RMB100
million) 1126.77 1213.63 1367.74
----------- ----------- -----------
Total profit (RMB100 million) 102.19 114.81 99.58
----------- ----------- -----------
Safe flight hours (10,000
hours) 202.87 211.52 224.52
----------- ----------- -----------
RTK (100 million) 236.98 253.85 275.18
----------- ----------- -----------
Passenger carried (10,000
persons) 9660.59 10157.67 10972.66
----------- ----------- -----------
Cargo and mail carried
(10,000 tonnes) 176.91 184.16 190.84
----------- ----------- -----------
Social contribution per
share (RMB) 2.822 2.768 2.968
----------- ----------- -----------
Purchases from the five
largest suppliers
(RMB100 million) 375.47 350.59 412.36
----------- ----------- -----------
Intellectual property rights
registered 2587 2819 3006
----------- ----------- -----------
Passengers' overall satisfaction
(points) 87.32 88.00 90.6
----------- ----------- -----------
Premium passengers' overall
satisfaction (points) 87.26 88.20 89.5
----------- ----------- -----------
Number of complaints received
from passengers for the
whole year 20638 16155 13450
----------- ----------- -----------
Passenger complaint handling
rate (%) 100 100 100
----------- ----------- -----------
Domestic luggage error
rate (%o) 1.22 0.80 0.98
----------- ----------- -----------
Overseas luggage error
rate (%o) 4.90 3.75 3.93
----------- ----------- -----------
Flight on-time performance
(%) 76.7 70.9 80.36
----------- ----------- -----------
Flight execution rate (%) 98.3 98.0 98.4
----------- ----------- -----------
Total energy consumption
(10,000 TCE) 942.4 1006.9 1092.1
----------- ----------- -----------
Aviation fuel consumption
(10,000 tonnes) 636.8 680.4 738.1
----------- ----------- -----------
Power consumption (MWh) 136559.7 147810.1 162964.4
----------- ----------- -----------
Gasoline consumption (tonnes) 1632 1584 2281.4
----------- ----------- -----------
Diesel consumption (tonnes) 6986.6 7248.7 8075.8
----------- ----------- -----------
Natural gas consumption
(10,000 m3) 884.9 945.4 975.0
----------- ----------- -----------
Name of Indicators 2016 2017 2018
Thermal Force (MKJ) 381593.4 404549.9 370534.1
-------- -------- -------------------------
Other energy consumption
(TCE) 68 26.9 24.5
-------- -------- -------------------------
Fuel consumption per RTK
(kg) 0.277 0.274 0.274
-------- -------- -------------------------
CO2 emissions per RTK (g) 873 863 863
-------- -------- -------------------------
CO2 emissions (10,000 tonnes) 2005.9 2143.3 2325.0
-------- -------- -------------------------
Total hazardous waste emissions
(tonnes) 323.4 356.7 632.0
-------- -------- -------------------------
Water consumption (10,000
tonnes) 347.8 367.9 412.1
-------- -------- -------------------------
Environmental protection
investment (RMB10,000) 18501 29000 21931.1
-------- -------- -------------------------
Number of employees on
the post (persons) 23258 25168 28302
-------- -------- -------------------------
Number of foreign employees
(persons) 1155 1113
-------- -------- -------------------------
983
-------- -------- -------------------------
Number of minority employees
(persons) 1051 1074 1419
-------- -------- -------------------------
Number of disabled employees
(persons) 19 20 15.5
-------- -------- -------------------------
Female employee percentage
(%) 40.3 45.2 43.56
-------- -------- -------------------------
Total number of management
staff and management supporting
employees (persons) 5719 6443 6721
-------- -------- -------------------------
Labour contract signing
rate (%) 100 100 100
-------- -------- -------------------------
Employee turnover rate
(%) 2.53 2.56 3.30
-------- -------- -------------------------
Distribution of employees
leaving the Company
-------- -------- -------------------------
Aged 34 and below
42.24%
-------- -------- -------------------------
Aged 35-44 14.12%
-------- -------- -------------------------
Aged 45-54 14.82%
-------- -------- -------------------------
Aged 55 and above
28.82%
-------- -------- -------------------------
Male 45.74%
-------- -------- -------------------------
Female 54.26%
-------- -------- -------------------------
China 94.52%
-------- -------- -------------------------
Foreign countries
5.48%
and region
-------- -------- -------------------------
Proportion of employees
guaranteed by collective
bargaining agreements (%) 100 100 100
-------- -------- -------------------------
Total safety training hours
(hours) 143678 198919 207551
-------- -------- -------------------------
Number of employees participated
trainings (persons) 83997 94190 119707
-------- -------- -------------------------
Total employee education
expenses (RMB10,000) 1892.2 2121.0 2219
-------- -------- -------------------------
Notes:
1. The information is based on the calibre of Air China Group,
among which, the information on services and employees is based on
the calibre of Air China while the information on energy
consumption is based on the calibre of Air China, Air China Cargo,
Shenzhen Airlines, Kunming Airlines, Dalian Airlines and Air China
Inner Mongolia. The difference of relevant indicators as compared
with those of the previous year is mainly affected by the
separation of thermal indicators
2. CO(2) emissions include only the direct emissions from
aviation fuel combustion, and other energy emissions have no
national unified standards for calculation currently
3. Hazardous waste emissions include emissions from AMECO
hazardous waste
4. The number of disabled employees is based on the document
verified by Beijing Shunyi Disabled Labor Employment Service
Center
5. Since 28 December, the Company's fleet ceased to have any
cargo aircraft
Major Honours
From February to March, Air China was selected as 'BrandZ Top
100 Most Valuable Chinese Brands 2018' jointly released by WPP, a
global communication service group and its research institutes. Air
China ranked 21st in the brand value list and recorded an increase
of 8% in terms of the annual brand value, being an enterprise
getting the highest score in the Chinese aviation industry. Air
China was also selected as 'BrandZ Top 50 Chinese Global Brand
Builders' and 'BrandZ Top Ten Chinese Brands by Overseas
Revenues'.
On 21 May, Air China won the 'Excellent Performance in Investor
Relations ' at the 4th Hong Kong Investor Relations Awards hosted
by the Hong Kong Investor Relations Association (HKIRA).
On 25 May, Air China ranked 66th among top 100 of the 'List of
listed companies with high returns' jointly announced by the China
Association for Public Companies together with the Shanghai Stock
Exchange and the Shenzhen Stock Exchange for its good performance
and continually annual cash dividends. The Company would continue
to focus on the main business and insist on steady operations to
actively return to shareholders.
On 11 October, 2017 Annual Report of the Company was awarded the
Gold Winner for Traditional Annual Report in Aviation Industry and
Bronze Winner for Cover Photo/Design in Aviation Industry at the
32nd ARC Awards International respectively.
On 19 October, the Company was crowned the Best Investment Value
Award for Hong Kong Listed Companies under Stock Connect at the
2018 Gold Wing Awards presented by the Securities Times, in
recognition of its efforts and improvement in terms of market value
management and active return to shareholders.
On 23 November, Air China ranked 55th in Top 100 Listed
Companies in China for 2018 with total profit of RMB11.481 billion
at the 18th Summit of Top 100 Chinese Listed Companies held by Top
100 Chinese Listed Companies Summit Organizing Committee and
Wharton Economic Research Institute and won the 'China Top 100
Enterprise Award'.
On 6 December, the Company's 2017 annual social responsibility
report was awarded the 'Golden Bee 2018 Excellent Corporate Social
Responsibility Report -- Evergreen Award'.
On 12 December, Air China was awarded the 'Most Popular Domestic
Airlines Among Chinese Families' at the award ceremony of the 10th
'Most Popular Outbound Tour Selection By Chinese Families' hosted
by Global Times -- Global Travel. This was the tenth time for Air
China to win this honour since 2009.
On 27 December, in the 2018 edition of World's 500 Most
Influential Brands released by the World Brand Lab at the 15th
World Brand Conference, Air China ranked 287th with a brand value
of RMB145.295 billion, up 3 places comparing to last year. Air
China was the only civil aviation company among 38 Chinese
enterprises included in the list. Air China also won the '2018
Chinese Brand Annual Award NO.1 (Aviation)' and a special award,
the '2018 China Annual Cultural Brand Award'.
On 11 January 2019, Air China won the 'Best Board of Directors
Award' at the 14th 'Golden Round Table Awards' of the Board of
Directors of Chinese Listed Company sponsored by the 'Board'
magazine, the most authoritative corporate governance academic and
evaluation institution in China.
Outlook
Economy
We will explore our potential in transport capacity resources,
improve our operation and organization efficiency, and augment our
reserve in resources of Traffic Rights. In 2019, the Company planed
to complete 2.356 million flying hours and carried 120 million
passengers, with transport capacity in ATKs and RFTKs reaching 41.7
billion and 8.16 billion, respectively.
We will firmly carry out our hub and network strategy, actively
expand the international market with keeping a foothold in the
domestic market, optimize our transport capacity facilities and
achieve better revenue quality for continuous increase in our
economic benefits of route operation.
We will continue to improve our business quality, accelerate the
transformation of business models, integrate marketing resources,
strengthen cost control, and strictly control the investment scale,
so that asset values can match with development speed and operating
efficiency.
Safety
The Company will prevent flight accidents, major and significant
aviation ground accidents and significant aircraft maintenance
accidents and will do our utmost to prevent any hijacking or
bombing attempts and ensure the safety of passengers and the safety
of aircraft. The human-induced accident rate per 10,000 shall not
exceed 0.13.
We will improve the safety risk prevention and control
capabilities, implement the safety production responsibility
system, and improve the production and operation management
system.
We will strengthen the capacity building of professional systems
and teams' working style, and continuously improve the quality of
flight, and will also strengthen the daily safety education and
skills training and strengthen safety inspection and supervision to
ensure a stable and safe situation.
Employees
We will remain people-oriented, keep updating our employee
service system, continue the caring for employees' mental
conditions, offer support to employees in difficulty, and engage
employees in diversified cultural activities.
We will continuously strengthen our talent development
mechanism, provide employees with comprehensive and smooth
promotion channels as well as a broad platform to study.
We will continue to optimize our employment rules, human
resource management system and remuneration and benefits system,
enhance democratic management, and boost employees'
satisfaction.
Services
We will promote the transformation and upgrading of our
services, improve the product and service management system, and
continuously enhance the professional level of service teams and
service capabilities.
We will build a quality management system and design first-class
services and products, and will also promote the comprehensive
implementation of the full-process product and service management
system and complete the formulation of service standards for the
full-process contact points.
We will promote the lounge management and carry out the
construction, renovation and expansion of the lounge to enhance the
product experience on the aircraft. We will speed up launching
'Smart Travel' projects, focusing on the promotion of remote
check-in, self-service baggage check-in, self-boarding and other
products, and will also promote 'paperless' convenient travel and
personalized departure system.
Environment
We will continue to improve the construction of energy-saving
and environmental protection management systems, deepen the
fuel-saving measures in the field of flight operation control, and
advance the special work of 'improving the carrying capacity of
belly holds'.
We will continue to advance the special work of 'Application of
New Energy Vehicles' for ground support vehicles, facilitate the
transformation of ground energy structure, promote the
energy-saving measures of replacing APU by ground power, and
popularize the application of new technologies for ground support
equipment.
We will actively promote environmental protection publicity
work, foster environmental awareness and habits of passengers and
employees, actively participate in environmental protection public
welfare projects, fulfil the corporate social responsibility, and
put the Company's green development concept into effect.
Community
We will continue to support special flight operations for major
events, and organize volunteer services actively to push forward
public welfare and charity.
We will do our utmost to win the battle against poverty, improve
the responsibility mechanism, deepen the assistance projects and
explore the long-term model, and will also fully assist the poverty
alleviation counties in completing the task of poverty alleviation,
consolidate and stabilize the foundation of poverty alleviation, in
order to coordinate the rural revitalization strategy in an orderly
manner.
HK-ESG Index
HK-ESG State Page(s) Description
Environmental
A1: Emissions
General Disclosure In 2018, Air China
Information on: (a) the policies; Included 44,47 did not incur any
and (b) compliance with relevant serious environment
laws and regulations that have a pollution or over
significant impact on the issuer discharge accidents
relating to air and greenhouse gas
emissions, discharges into water
and land, and generation of hazardous
and non-hazardous waste
------------- ---------- ------------------------
In the industry,
A1.1 The types of emissions and Included 63-64 discharge mainly
respective emissions data Partially comes from jet fuel,
which accounts for
more than 99% of
the total discharge,
with a very limited
amount of the other
substances, which
is not the main
interests of management
and disclosure
------------- ---------- ------------------------
A1.2 Greenhouse gas emissions in
total (in tonnes) and, where appropriate,
intensity (e.g. per unit of production
volume, per facility) Included 64
------------- ---------- ------------------------
A1.3 Total hazardous waste produced
(in tonnes) and, where appropriate,
intensity (e.g. per unit of production
volume, per facility) Included 64
------------- ---------- ------------------------
A1.4 Total non-hazardous waste produced
(in tonnes) and, where appropriate,
intensity (e.g. per unit of production
volume, per facility) Included 47
------------- ---------- ------------------------
A1.5 Description of measures to
mitigate emissions and results achieved Included 44-46
------------- ---------- ------------------------
A1.6 Description of how hazardous
and non-hazardous wastes are handled,
reduction initiatives and results
achieved Included 47
------------- ---------- ------------------------
A2: Use of Resources
General Disclosure:
Policies on the efficient use of
resources, including energy, water
and other raw materials Included 43,46
------------- ---------- ------------------------
A2.1 Direct and/or indirect energy
consumption by type (e.g. electricity,
gas or oil) in total (kWh in '000s)
and intensity (e.g. per unit of
production volume, per facility) Included 63-64
------------- ---------- ------------------------
A2.2 Water consumption in total
and intensity (e.g. per unit of
production volume, per facility) Included 64
------------- ---------- ------------------------
A2.3 Description of energy use efficiency
initiatives and results achieved Included 45-46
------------- ---------- ------------------------
A2.4 Description of whether there
is any issue in sourcing water that
is fit for purpose, water efficiency
initiatives and results achieved Included 47
------------- ---------- ------------------------
A2.5 Total packaging material used N/A
for finished products (in tonnes)
and, if applicable, with reference
to per unit produced
------------- ---------- ------------------------
A3: The Environment and Natural Resources
General Disclosure:
Policies on minimising the issuer's
significant impact on the environment
and natural resources Included 47,48
------------- ---------- ------------------------
A3.1 Description of the significant
impacts of activities on the environment
and natural resources and the actions
taken to manage them Included 47,48
------------- ---------- ------------------------
Social
B1: Employment
General Disclosure In 2018, Air China
Information on: (a) the policies; Included 55 did not incur any
and (b) compliance with relevant cases of incompliance
laws and regulations that have a in terms of talent
significant impact on the issuer recruitment and
relating to compensation and dismissal, employment
recruitment and promotion, working
hours, rest periods, equal opportunity,
diversity, anti-discrimination,
and other benefits and welfare
------------- ---------- ------------------------
B1.1 Total workforce by gender,
employment type, age group and geographical
region Included 55
------------- ---------- ------------------------
B1.2 Employee turnover rate by gender,
age group and geographical region Included 64
------------- ---------- ------------------------
B2: Health and Safety
General Disclosure Included 57 In 2018, Air China
Information on: (a) the policies; did not incur any
and (b) compliance with relevant safety accidents
laws and regulations that have a in relation to its
significant impact on the issuer employees
relating to providing a safe working
environment and protecting employees
from occupational hazards
------------- ---------- ------------------------
B2.1 Number and rate of work-related Not Included
fatalities
------------- ---------- ------------------------
B2.2 Lost days due to work injury Not Included
------------- ---------- ------------------------
B2.3 Description of occupational
health and safety measures adopted,
how they are implemented and monitored Included 57
------------- ---------- ------------------------
HK-ESG State Page(s) Description
Social
B3: Development and Training
General Disclosure
Policies on improving employees'
knowledge and skills for discharging
duties at work. Description of
training activities Included 56
------------- --------- -----------------------------
B3.1 The percentage of employees
trained by gender and employee
category (e.g. senior management, Included
middle management) Partially 64
------------- --------- -----------------------------
B3.2 The average training hours
completed per employee by gender Included
and employee category Partially 64
------------- --------- -----------------------------
B4: Labour Standards
General Disclosure In 2018, Air China
Information on: (a) the policies; Included 55 did not incur any
and (b) compliance with relevant cases of incompliance
laws and regulations that have with the laws and
a significant impact on the issuer regulations in relation
relating to preventing child and to child labour and
forced labour forced labour
------------- --------- -----------------------------
B4.1 Description of measures to Included In 2018, Air China
review employment practices to did not incur any
avoid child and forced labour cases of illegal employment
------------- --------- -----------------------------
B4.2 Description of steps taken Included In 2018, Air China
to eliminate such practices when did not incur any
discovered cases that involved
illegal employment
------------- --------- -----------------------------
B5: Supply Chain Management
General Disclosure
Policies on managing environmental
and social risks of the supply
chain Included 34
------------- --------- -----------------------------
B5.1 Number of suppliers by geographical
region Included 34
------------- --------- -----------------------------
B5.2 Description of practices relating
to engaging suppliers, number of
suppliers where the practices are
being implemented, how they are
implemented and monitored Included 34
------------- --------- -----------------------------
B6: Product Responsibility
General Disclosure In 2018, Air China
Information on: (a) the policies; Included 51 did not incur any
and (b) compliance with relevant cases of incompliance
laws and regulations that have in relation to provision
a significant impact on the issuer of services
relating to health and safety,
advertising, labelling and privacy
matters relating to products and
services provided and methods of
redress
------------- --------- -----------------------------
B6.1 Percentage of total products N/A
sold or shipped subject to recalls
for safety and health reasons
------------- --------- -----------------------------
B6.2 Number of products and service
related complaints received and
how they are dealt with Included 54, 63
------------- --------- -----------------------------
B6.3 Description of practices relating
to observing and protecting intellectual
property rights Included 54
------------- --------- -----------------------------
B6.4 Description of quality assurance N/A
process and recall procedures
------------- --------- -----------------------------
B6.5 Description of consumer data
protection and privacy policies,
how they are implemented and monitored Included 54
------------- --------- -----------------------------
B7: Anti-corruption
General Disclosure
Information on: (a) the policies;
and (b) compliance with relevant
laws and regulations that have
a significant impact on the issuer
relating to bribery, extortion,
fraud and money laundering Included 25
------------- --------- -----------------------------
B7.1 Number of concluded legal Not Included
cases regarding corrupt practices
brought against the issuer or its
employees during the reporting
period and the outcomes of the
cases
------------- --------- -----------------------------
B7.2 Description of preventive
measures and whistle-blowing procedures,
how they are implemented and monitored Included 25
------------- --------- -----------------------------
B8: Community Investment
General Disclosure
Policies on community engagement
to understand the needs of the
communities where the issuer operates
and to ensure its activities take
into consideration the communities'
interests Included 58
------------- --------- -----------------------------
B8.1 Focus areas of contribution
(e.g. education, environmental
concerns, labour needs, health,
culture, sport) Included 58
------------- --------- -----------------------------
B8.2 Resources contributed (e.g.
money or time) to the focus area Included 58-62
------------- --------- -----------------------------
GRI Standards Index
CONTENTS GRI Standards
Chairman's Statement 102-14
---------------------------------------------------
Feature: Concentrating on poverty alleviation and being responsible
About Us
Company Overview 102-1/102-2/102-3/102-5/102-6/102-7/102-18
---------------------------------------------------
Organizational Structure
---------------------------------------------------
Party Building
---------------------------------------------------
Corporate Governance and Risk Prevention 102-15/102-17
---------------------------------------------------
Anti-corruption 205-1/205-2
---------------------------------------------------
Corporate Culture
---------------------------------------------------
Responsibility of Sustainable Development
Responsibility Concepts 102-16/102-19/102-20/102-22/102-23/102-24/102-26
---------------------------------------------------
Incorporating Responsibilities
---------------------------------------------------
102-21/102-31/201-33/102-34/102-40/102-42/102-43/
Responsibility Communication 102-44/102-46/102-47/103-1
---------------------------------------------------
Responsibility for Flight Safety
Optimizing Safety Management
---------------------------------------------------
Guaranteeing Safe Operation
---------------------------------------------------
Cultivating Safety Culture
---------------------------------------------------
Economic Responsibility for Stakeholders
Creating Economic Value 201-1
---------------------------------------------------
A Win-win Relation with Partners 102-9/204-1
---------------------------------------------------
Environmental Responsibility and Green Aviation
Establishing and Improving Management
Systems
---------------------------------------------------
Creating a Green Operational Model
---------------------------------------------------
Increasing Investment in Green
Support 201-2/203-2/302-4/302-5/303-3
---------------------------------------------------
Participating in the Design of
Green Mechanisms
---------------------------------------------------
Promoting Environmental Protection
Public Welfare Projects 304-1/304-3
---------------------------------------------------
CONTENTS GRI Standards
Social Responsibility for a Better Life
Improving Service Quality 416-1/417-1
-----------------------------------------------------
102-8/102-35/102-36/102-37/102-41/401-1/401-2/
Boosting Employee Development 404-2/405-1/406-1
-----------------------------------------------------
Community Involvement 413-1/415-1
-----------------------------------------------------
Table of Major Indicators 301-1/302-3/305-4/305-5/306-2/404-1
-----------------------------------------------------
Major Honours
-----------------------------------------------------
Outlook
-----------------------------------------------------
HK-ESG Index
-----------------------------------------------------
GRI Standards Index 102-55
-----------------------------------------------------
Third-party Assurance 102-56
-----------------------------------------------------
Feedback Collection
-----------------------------------------------------
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END
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July 05, 2019 02:00 ET (06:00 GMT)
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