UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
___________________
FORM
6-K
Report
of Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16
under
the Securities Exchange Act of 1934
For
the
month of November 2008.
Commission
File Number: 001-14550
China
Eastern Airlines Corporation Limited
———————————————————————————————————
(Translation
of Registrant’s name into English)
2550
Hongqiao Road
Hongqiao
Airport
Shanghai,
China 200335
———————————————————————————————————
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F: x Form
20-F o Form
40-F
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): o
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7): o
Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934: o Yes x No
If
"Yes"
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): n/a
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
China
Eastern Airlines Corporation Limited
(Registrant)
|
||||
| |
|
|
||
| Date | November 26, 2008 | By: | /s/ Luo Zhuping | |
| Name: Luo Zhuping | ||||
|
Title:
Company Secretary
|
||||
Certain
statements contained in this announcement may be regarded as "forward-looking
statements" within the meaning of the U.S. Securities Exchange Act of 1934,
as
amended. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual performance,
financial condition or results of operations of the Company to be materially
different from any future performance, financial condition or results of
operations implied by such forward-looking statements. Further information
regarding these risks, uncertainties and other factors is included in the
Company's filings with the U.S. Securities and Exchange Commission. The
forward-looking statements included in this announcement represent the Company's
views as of the date of this announcement. While the Company anticipates
that
subsequent events and developments may cause the Company's views to change,
the
Company specifically disclaims any obligation to update these forward-looking
statements, unless required by applicable laws. These forward-looking statements
should not be relied upon as representing the Company's views as of any date
subsequent to the date of this announcement.
(A
joint stock limited company incorporated in the People’s Republic of China with
limited liability)
(Stock
code: 670)
Announcement
in relation to
Aviation
Fuel Hedging Activities
China
Eastern Airlines Corporation Limited (the “Company”)
engages in aviation fuel hedging activities in order to reduce the risk
of
significant increase in aviation fuel prices and thereby minimizing the
uncertainties to the Company’s business due to rise of aviation fuel prices.
Through hedging against the costs of aviation fuel consumes by the Company,
the
aviation fuel costs will be more stable and fixed. It also effectively
avoids
the operating risks arising from any substantial increase in aviation fuel
prices. Such aviation fuel hedging activities are the principal means of
airlines worldwide to fix its aviation fuel costs, and are commonly
adopted.
Aviation
fuel costs constitute an increasing proportion of the Company’s operating costs
year by year. During the period from 2002 to mid of 2008, the proportion
of
aviation fuel costs to total operating costs of the Company has risen from
21%
to 40%. The significant increase of aviation fuel prices has severely affected
the operating effectiveness of the Company. In light of the continuous
rise in
aviation fuel prices since the beginning of 2008 and in order to protect
the
business of the Company from the impact of increase in price of aviation
fuel,
the Company has, according to the relevant rules and guidelines and
authorisation by the board of directors of the Company, entered into certain
aviation fuel hedging contracts. The volume hedged under the hedging contracts
in 2008 amounted to 35.9% of the total estimated aviation fuel consumption
of
the Company for 2008.
Since
the
Company announced its results for the third quarter of this year, aviation
fuel
prices continue to decrease significantly. As at 31 October 2008, the estimated
fair value loss of the Company on the hedging contracts is approximately
RMB1.83
billion. Such fair value loss of the Company on the hedging contracts as
at 31
October 2008 is calculated based on the possible aggregate losses that
may be
incurred in relation to the remaining period of the hedging contracts.
Such fair
value loss is not actual cash loss and the actual amount of loss depends
on the
future movements in aviation fuel prices during the remaining period of
the
hedging contracts. As at 31 October 2008, the Company has not incurred
any
actual cash loss on the hedging contracts. As
usual,
the Company will closely monitor the changes in the fair value of the hedging
contracts and will disclose relevant information according to the relevant
rules
and regulations.
If
aviation fuel prices continue to remain at low levels, the Company will
be able
to lower its purchase costs on aviation fuel. The portion of the aviation
fuel
that is not hedged by the hedging contracts is purchased at market price,
which
such portion amounts to 60% or more of the total aviation fuel consumed
by the
Company each year. As a result, the amount that has been saved as a result
of
the lower purchase cost on aviation fuel by the Company will be substantially
higher than the losses arising from the hedging contracts.
The
Company has published an overseas regulatory announcement on the website
of the
Hong Kong Stock Exchange on 9 June 2006 disclosing certain information
relating
to the aviation fuel hedging activities of the Company. Please refer to
such
announcement for more information.
By
order
of the board of directors of
China
Eastern Airlines Corporation Limited
Luo
Zhuping
Director
and Company Secretary
The
directors of the Company as at the date of this announcement are:
|
Li
Fenghua
|
(Chairman,
Non-executive Director)
|
|
Li
Jun
|
(Vice
Chairman, Non-executive Director)
|
|
Cao
Jianxiong
|
(President,
Executive Director)
|
|
Luo
Chaogeng
|
(Non-executive
Director)
|
|
Luo
Zhuping
|
(Executive
Director)
|
|
Hu
Honggao
|
(Independent
Non-executive Director)
|
|
Peter
Lok
|
(Independent
Non-executive Director)
|
|
Wu
Baiwang
|
(Independent
Non-executive Director)
|
|
Zhou
Ruijin
|
(Independent
Non-executive Director)
|
|
Xie
Rong
|
(Independent
Non-executive Director)
|
Shanghai,
the People’s Republic of China
26
November 2008