TIDMAIRC
RNS Number : 5413H
Air China Ld
04 August 2021
Corporate Social Responsibility Repor t 2020
Air China Limited
About This Report
The year of 2020 was the final year for the 13th Five-year Plan,
as well as a crucial year for building a moderately prosperous
society in all respects and achieving the first centennial goal.
This report reflects the commitments and performance Air China
Limited delivered by following the instructions and requirements
regarding social responsibility given by the Central Committee of
the Communist Party of China (CPC) and the State-owned Assets
Supervision and Administration Commission (SASAC) of the State
Council in 2020. Leveraging its strengths in core airline
operations, Air China made accomplishments in key areas of
implementing national strategies, practicing the new development
philosophy, building a ecological civilization, safeguarding safe
production and caring about employee's growth by strengthening its
efforts in the management and information disclosure regarding
social responsibility. We hope you can feel our passion through
this report, and continue to support and help us in carrying out
our reform and development.
Reporting Period
This report covers the period from 1 January to 31 December
2020.
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 Aircraft Maintenance and Engineering
Corporation (Ameco) and Shenzhen Airlines Company Limited (Shenzhen
Airlines).
Basis of Preparation
This report is prepared in accordance with relevant
requirements, including the Guidelines for National Enterprises on
Fulfilling Corporate Social Responsibility released by the SASAC 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 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), with reference to the standards and requirements such as
Global Reporting Initiative Sustainability Reporting Standards (GRI
Standards) of the Global Sustainability Standards Board (GSSB),
GB/T36001 Guidance on Social Responsibility Reporting and
additional guidelines for the aviation service industry.
Publishing of the Report
This is the thirteenth annual CSR report published by Air China
Limited.
Sources of Data
All the financial data referred in this report, applying China
Accounting Standards for Business Enterprises, are extracted from
the audited annual reports of Air China Limited, while the other
data comes from official internal documents and relevant statistics
of Air China Limited.
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 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 in both Chinese and English are
also available for downloading from the Company's website.
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:
Contact unit: Office of the Board
Address: No. 30, Tianzhu Road, Airport Industrial Zone, Shunyi
District, Beijing, China
Tel: 86-10-61462152
Fax: 86-10-61462805
Email: baixiao@airchina.com
Contents......................................................................................................
04
Chairman's
Statement...............................................................................................................................................................................
04
Company
Profile......................................................................................................................................................................................
06
Sustainability
Management.......................................................................................................................................................................
12
Corporate
Governance..............................................................................................................................................................................
15
Board of Directors ESG
Statement...........................................................................................................................................................
18
Feature..............................................................................................................................................
24
Fighting Against
COVID-19...................................................................................................................................................................
24
Winning the Battle for Poverty
Alleviation...............................................................................................................................................
35
1. Safety: Building on the Foundation for Development
............................................................ 40
1.1 Consolidating Safety
Management............................................................................................................................................
42
1.2 Guaranteeing Safe
Operation....................................................................................................................................................
44
1.3 Promoting the Safety
Culture....................................................................................................................................................
46
2. Service: A Heartwarming
Journey............................................................................................
48
2.1 Service Quality
Management....................................................................................................................................................
50
2.2 Forging Sincere
Service............................................................................................................................................................
51
2.3 Protecting Rights and Interests of
Passengers...........................................................................................................................
54
3. Economy: Becoming the World's Leading
Enterprise.............................................................
56
3.1 Creating Economic Value
Together...........................................................................................................................................
58
3.2 Jointly Driving Industry
Development......................................................................................................................................
60
4. Environment: Building a Beautiful Home Together
..............................................................
64
4.1 Improving Management
Systems..............................................................................................................................................
66
4.2 Insisting on Low-carbon
Operation..........................................................................................................................................
67
4.3 Strengthening Pollution
Prevention...........................................................................................................................................
70
4.4 Promoting Environmental
Protection........................................................................................................................................
72
5. Society: Building a Better Life
Together...................................................................................
74
5.1 Being Committed to Employee
Development............................................................................................................................
76
5.2 Sincerely Giving Back to the
Society........................................................................................................................................
83
Outlook for
2021......................................................................................................................................................................................
86
Table of Major
Indicators.........................................................................................................................................................................
87
Index........................................................................................................................................................................................................
89
Third-party
Assurance..............................................................................................................................................................................
91
Feedback
Collection.................................................................................................................................................................................
94
Chairman's Statement
The year of 2020 was the final year for the 13th Five-year Plan,
as well as a crucial year for building a moderately prosperous
society in all respects and achieving the first centennial goal.
Under the strong leadership of the CPC Central Committee with
General Secretary Xi Jinping as the core, Air China resolutely
implemented the decisions and arrangements of the CPC Central
Committee and the State Council, integrated political and social
responsibility into corporate development, and coordinated pandemic
prevention and control, safety, efficiency, and passenger services
to minimize the impact of the COVID-19 pandemic.
We went all out to fulfill our political responsibilities and
responsibilities in fighting the COVID-19 pandemic. In the face of
the unexpected pandemic, Air China resolutely implemented the
decision and arrangements of the CPC Central Committee, fulfilled
the responsibility and mission of the national flag carrier, put
all efforts in pandemic prevention and control, transportation
security and operational efficiency. Our brave flight crew showed
the spirit of dedication and the courage to shoulder urgent,
difficult, and dangerous tasks, going through quarantine and
medical observation more than 98,000 (including 68,000 pilots)
person-times, with an average quarantine count of 2.6 times and
lasting period of more than 36 days. We conscientiously implemented
the requirements and arrangements of the three critical battles
against potential risk, poverty, and pollution. We insisted on
advancing and optimizing the special poverty alleviation model of
"8+2" and did our best to assist the targeted poor areas in
fulfilling the task of quality poverty alleviation as scheduled. We
continued to implement the "Three-Year Action Plan to fight air
pollution" by accelerating construction of the carbon emission
system and the energy conservation and environmental protection
management platform and propelling the "Application of New Energy
Vehicles" efforts. We have improved the four-in-one management
mechanism integrating risks, internal control, compliance and legal
affairs; and promoted the establishment of internal audit system to
prevent various operation management risks.
As always, we earnestly fulfilled our responsibilities in terms
of safety, economy, service, employees, and promoted sustainable
development. In terms of safety, we bear in mind that safety is the
lifeline of the civil aviation industry. We took a series of
measures in implementing the work safety responsibility system,
construction of safety systems, improving safety management
capabilities, and consolidating the foundation of safety
management, with an emphasis on the prevention and control of
safety risks. We maintained a stable safety situation in the
complex environment under the pandemic, achieved 1.553 million
hours of safe flight, and ensured the safety of major
transportation tasks. In terms of economic benefits, the pandemic
brought unprecedented and serious impact on the industry. In the
face of the severe situation, we strengthened our research and
production organization and kept a close eye on the recovery of the
domestic market. We dynamically adjusted capacity structure and
carefully organized marketing and product investment to maximize
the total marginal contribution. Since turning losses into profits
in August of the year, we remained profitable for four consecutive
months. We grasped the trend of freight supply and demand,
strengthened the passenger-freighter convertibility, and took the
lead in implementing the "preighter" business model. We also
implemented the most stringent cost control, matched costs with
production pace, and restructured the cost system. In terms of
service, we adhere to customer-centricity. We grasped changes in
passenger needs and scientifically adjusted our service procedures
to continuously enhance passengers' sense of security and gain. By
establishing a sound and hierarchical system for products and
services and accelerating the construction of worldwide ground
support platforms, we enhanced our capability to respond swiftly
and make agile decisions under exceptional conditions. Besides, we
also stepped up the development of hub strategic products and
continued to promote the applications of our baggage re-confirm
system and radio frequency identification technology, thereby
developing digitalized and intelligent innovation convenient travel
products as well as promoting the construction of service
innovation laboratories and application of the results. We advanced
the preparations for the Beijing 2022 Winter Olympics and
Paralympic Winter Games in an orderly manner and completed a
variety of preparatory tasks, demonstrating the Company's image as
a "Double Olympics" partner. In terms of employees, we adhered to
the concept of people-oriented and utilized the democratic
management function of labor unions. Based on the actual demands of
employees, we strengthened the selection and cultivation of
outstanding young cadres, and motivated the cadres of all ages.
Moreover, we improved the appraisal and fault tolerance mechanism
as well as refined the system and methods of encouraging
managements to undertake due responsibilities. We also strengthened
the team building of educated, skilled, and innovative workforce,
and built a growth platform for youth.
The year 2021 marks the launch of the 14th Five-Year Plan. In
the new stage of development, we will continue to uphold Xi Jinping
Thought on Socialism with Chinese Characteristics for a New Era,
and thoroughly implement the new development principles and
high-quality development demands. We will seize opportunities, rise
to challenges, and forge ahead. We will leverage our remarkable
operation performances to lay a solid foundation for establishing
the Company as a world-class aviation transportation enterprise and
make greater contributions to global sustainable development!
Song Zhiyong
Chairman
Air China Limited
Company Profile
Air China Limited was founded in 1988, formerly known as Air
China International Corporation. In October 2002, Air China
International Corporation 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 15 December of the same year, before
floating in the domestic A-shares market on August 18, 2006.
Air China is the only flag-carrier aviation company in China and
a member of the Star Alliance, the world's largest airline
alliance. It is the official airline partner of the 2008 Beijing
Olympics and the Paralympics, and the official airline partner of
the 2022 Winter Olympics and Winter Paralympics in Beijing. Air
China had the top brand value of aviation company in China. In the
lead among domestic airlines in passenger transportation and other
related services, Air China also provides important international
and domestic transportation services such as exclusive flight
services to top-ranking foreign officials and visitors as well as
emergency flight services. Air China's overall operating
performance in 2020 was not as good as in previous periods mainly
due to the COVID-19 pandemic. By December 31, 2020, the Company's
total market value was RMB98.04 billion. During the reporting
period, there were no major changes in the Company's scale,
structure, or ownership.
According to The World's 500 Most Influential Brands 2020 issued
by the World Brand Lab, the brand value of Air China is RMB186.52
billion.
RTK: 13.29 billion ton-km
Passengers carried: 69 million persons
Cargo and mails carried: 1.11 million tons
Operating income: RMB69.50 billion
Total profit: RMB-18.48 billion
Net profit attributable to shareholders of listed company:
RMB-14.41 billion
Air China Limited
Management Support Division
Administration Office
Strategy and Development Department
Human Resources Department
Finance Department
Aviation Safety Management Department
Flight Technology Management Department
Assets Management Department
Operation Standards Department
Product Service Department
Stations Management Department
Legal Department
Audit Department
Aviation Security Department
Corporate Culture Department
Discipline Inspection Office
Labour Union Office
Office of the Board
Leading Group Office of Deepening Reform
Business Management Units
Commercial Committee
Marketing Department
Sales Department
Network & Revenue Department
Accounting & Settlement Department
International Affairs & Co-operation Department
Sales Center, North China
Sales Center, Southwest
Sales Center, East China
Head Office, Europe
Head Office, North USA
Head Office, Japan
Head Office, Asia-Pacific
Operation Control Centre
Flight Crew Department
Ground Services Department
Cabin Services Department
Training & Development Department
Logistics & Support Department
Information Management Department
Air Marshall Department
Centralized Procurement Department
Retiree Service Department
Engineering Maintenance Department
Hub Development Department
Branches and Bases
Southwest Branch
Zhejiang Branch
Chongqing Branch
Tianjin Branch
Shanghai Branch
Hubei Branch
Guizhou Branch
Tibet Branch
Wenzhou Branch
Southern China Base
Major Subsidiaries
Aircraft Maintenance and Engineering Corporation
Shenzhen Airlines Company Limited
Beijing Airlines Co., Ltd.
Dalian Airlines Co., Ltd.
Air China Inner Mongolia Co., Ltd.
China National Aviation Finance Co., Ltd.
China National Aviation Company Limited
Air Macau Company Limited
Air China Development Corporation (Hong Kong) Limited
Air China Import and Export Trading Co., Ltd.
Beijing Golden Phoenix Human Resources Co., Ltd.
Shanghai Air China Aviation Service Co., Ltd.
Zhejiang Air Services Co., Ltd.
Chengdu Falcon Aircraft Engineering Service Co., Ltd.
Air China Shantou Industrial Development Company
Responsibility Concepts
Vision
A leading airline in the world: We want to be a company that is
highly competitive in terms of safe operations, service
capabilities, and brand awareness.
Mission
Putting safety at the forefront: Safety is the bedrock of our
business and is our fundamental responsibility.
Delivering 4C-based services: 4C is a recap of our service
philosophy that contains four elements: Credibility, Convenience,
Comfort, and Choice. It is a microcosm of our responsibilities to
customers.
Achieving steady growth: Formulating leadership strategies,
moving forward steadily, utilizing multi-brand synergies, achieving
operational excellence and striving for healthy and sustainable
development is Air China's responsibility to the stakeholders.
Helping our employees pursue a successful career: Giving our
people opportunities to realize their worth and grow with our
business is Air China's responsibility towards its employees.
Fulfilling our responsibilities: We fulfill our political,
economic and social responsibilities to serve the country and the
society.
Values
People orientation: Employee orientation and customer
orientation is the guideline on how we deal with people.
Assumption of responsibility: We are ready, willing and able to
assume responsibilities.
Resolve to get ahead: Innovation gives us renewed vigor; we will
never rest on laurels; we will lead the pack.
Loving to fly: We provide seamless services that are considerate
and cheerful, allowing our passengers to truly experience the
pleasure of flying.
Brand Positioning
Professional and trusted: We want to be an outstanding expert in
the field of air transport. We want to be a trusted leader in the
industry.
World-class standards: We want to be an airline well known and
highly respected around the world.
Chinese flair: We want to be an airline that is a showcase of
Chinese culture and China's modern dynamism.
Business Philosophy
Customer first;
Integrity and compliance
Safety Philosophy
Safety first;
Focus on prevention;
Integrated management
Serving Philosophy
Credibility, Convenience, Comfort, Choice
Talents Philosophy
Morality, Passion, Ability, Performance
Environmental Philosophy
Green operation; Sustainable development
Corporate Strategy
With the vision to become a leading carrier in the world, by
upholding the philosophy of high-quality development and striving
to take a leading role in terms of safe operation and construction
of hubs, Air China further optimized its allocation of
international resources to maintain its leading advantage in terms
of efficiency, further improve its service quality and enhance its
international influence, with a view to build a solid foundation
for the development of a world-class aviation enterprise.
World-class competitiveness
Hub Network Strategy
Continuous enhancement of development capability
Cost Advantage Strategy
Brand Building Strategy
Steady enhancement of related interests
Product Innovation Strategy
Talent Strategy
Excellent and unique customer experiences
Specialization Strategy
Resource Consolidation Strategy
Five keys to building a world-class enterprise
Establishing a firm concept of safe development to ensure
continuous safety
Strengthening team building of staff to cultivate
knowledge-based, skill-based and innovative employees and enhance
their sense of belonging and achievement
Promoting high-quality development to achieve new breakthroughs
in creating a world-class enterprise
Promoting deep reform on an ongoing basis to achieve new
progress in important areas and key tasks
Adhering to and putting the concept of Party building conference
for state-owned enterprises into practice to gain achievements in
Party building
Air China's Guiding Policy for 14th Five-Year Plan
The year 2021 will mark the launch of the 14th Five-Year Plan.
Air China has thoroughly implemented the essence of General
Secretary Xi Jinping's important instructions for civil aviation
and formulated its own 14th Five-Year Plan. In the next five years,
we will continue to promote high-quality development, consolidate
the results of pandemic prevention and control, and make overall
plans for safety and development. We will strive to make a
turnaround in operating efficiency, steadily and orderly advance
the implementation of the 14th Five-Year Plan, and promote the
comprehensive construction of a world-class aviation enterprise
with global competitiveness.
01 Improving the presence in regional markets and building a new
pattern of dual circulation focusing on the main business
We will optimize our presence in the domestic market in
accordance with the national and regional development strategies
and deepen the strategic coordination of our routes. We will adjust
the structure of domestic and international transport capacity,
consolidate our dominant position in the domestic cycle, and
gradually increase investment in traditional European and American
markets and markets along the Belt and Road based on the
post-pandemic recovery, to inject new momentum into the
international cycle. We will accelerate the construction of a
world-class hub, seize the major development opportunities of "two
airports in one city" in Beijing and Chengdu, and further enhance
our competitiveness as the hub.
02 Adhering to innovation-driven development and promoting the
application of transformational innovation
We will accelerate the transformation of our business model to
optimize experience, reduce costs, increase revenue, and innovate
technology. We will drive digital transformation with business
transformation, focusing on passenger experience, employee
capabilities, and asset operation efficiency. We will speed up
technological innovation by improving the supporting mechanism for
innovation, advancing innovation laboratories, accelerating the
transformation and application of innovation results, and promoting
the construction of a demonstration enterprise for scientific
reform.
03 Adhering to the systematic governance style and continuously
improving customer experience
Air China will focus on one goal, rely on two leverages, promote
transformation in three aspects, and build six pillars.
Focusing on one goal
World-class products and services
Relying on two leverages
Three orientations and three guiding policies
Promoting transformation in three aspects
Single scene
whole process
Static planning
dynamic management
Passive following
active leading
Building six pillars
High-quality products and services
Promptly and precise customer service
Integrated and smooth service guarantee
Innovation-driven digital support
Win-win and efficient service collaboration
Professional and trustworthy team
04 Promoting deep reform 2.0 and constantly enhancing internal
momentum
Air China will promote the drive of comprehensively deepening
reforms to a higher level, focusing on four key areas, namely, the
modern corporate system with Chinese characteristics, supply-side
structural reform, construction of market-oriented operation
mechanisms, and mixed ownership reform.
Sustainability Management
Air China has improved its corporate social responsibility
governance system. We integrated social responsibility governance
into the Company's overall governance and operation, optimized the
social responsibility governance structure, subdivided social
responsibility management functions, and comprehensively improved
the Company's social responsibility performance. The Company values
the communication with stakeholders, responds to their needs, and
promotes coordinated and sustainable development with all
stakeholders.
Social Responsibility Work
Air China adheres to the guiding policy of combining social
responsibility concepts with corporate strategic deployment and has
formulated a comprehensive plan for sustainable development and
established a complete social responsibility management system. The
Company has set up a CSR Leadership Panel and an Office of CSR
Leadership Panel, respectively responsible for the formulation and
implementation of corporate strategies for social responsibility
under a clear responsibility and accountability framework. Together
they have effectively improved Air China's performance in social
responsibility.
Social Responsibility Communication
Air China values the communication with stakeholders. Under our
efficient mechanism for stakeholder communication and feedback, we
listen to the opinions and suggestions of stakeholders, including
the government, shareholders, passengers, employees, and partners,
via different channels, identify the feedback and expectations of
stakeholders on the Company, and make targeted response to the
needs of different parties.
Stakeholders Communication Expectations and Response from Air China
channels appeals
Government/Domestic Work meetings Integrity, compliance Participating in the
and overseas regulatory and briefings and orderly operations planning, research
authorities Information Support for important and formulation of
disclosure and major events policies and reports
Cooperation Zero accident relating on special topics
with governments to safety of operations Following regulatory
Release of blue Good corporate requirements
books image Monitoring and evaluation
Energy conservation, Participating in special
emissions reduction training
and environmental
protection
--------------------------- ------------------------------- ------------------------------
Investors/Shareholders Information Realizing standardized Improving corporate
disclosure corporate governance governance and internal
Shareholders' Protection of control system
meetings investors'/shareholders' Working on investor
Investors' meetings interests relations
Official website Sustainable profitability Strengthening the
of the Company leading advantage
in terms of efficiency
Regular result announcements
--------------------------- ------------------------------- ------------------------------
Customers Customer satisfaction Flight safety and Establishing branded
surveys on-time performance lounges
Complaint handling Provision of all-round Special initiatives
New media and high-quality for improving food
services quality
Provision of intelligent
services
Improving release
mechanism for information
on irregular flights
Protecting passenger
information
--------------------------- ------------------------------- ------------------------------
Employees Employee satisfaction Protection of rights Building a multi-level
surveys and interests developing channel
Internal BBS, Focus on the Company's and learning path
magazines, emails, development strategy for talents
and WeChat Participation in Facilitating the work
Employee representatives' the Company's management of Staff Service Centre
meetings and operation Launch of "Blissful-Heart
Activities of Smooth career development Project" to offer
the trade union pathways psychological counselling
Establishment Compensation and Model workers' studios
of teams benefits Cultural and sports
activities
Skill contests
Helping employees
in difficulty
--------------------------- ------------------------------- ------------------------------
Partners/Suppliers Daily business Honesty and integrity Enhancing business
interactions in business operation communications and
Partners' meetings Transparency in cooperation
procurement Strengthening supplier
Mutual development management
Revising and improving
procurement policy
Strengthening suppliers'
capability for and
awareness of environmental
protection
--------------------------- ------------------------------- ------------------------------
Peers Industry forums Sustainable industry Strengthening alliance
Industry conferences development and cooperation
Maintenance of Launch of joint operation
a fair and orderly Signing of cooperation
market memorandum
--------------------------- ------------------------------- ------------------------------
Community Public welfare Promote economic Providing anti-pandemic
and charity growth of the communities security
activities Support public Stepping up efforts
Volunteer services welfare events in targeted poverty
alleviation
Engaging in public
welfare and charity
activities
Completing important
transportation tasks
--------------------------- ------------------------------- ------------------------------
Media Press releases Important events Publication of CSR
Media calls of the Company reports and regular
and visits Public image and performance reports
Official new influence Timely update of new
media platforms Future planning developments via Weibo,
WeChat and Douyin
Open day
--------------------------- ------------------------------- ------------------------------
Disclosure Principles
Materiality: With different forms of communication and exchanges
with stakeholders and benchmarking analysis of the disclosure
issues in peer companies' social responsibility reports, Air China
has identified and selected the material issues of sustainable
development. These issues are based on China's national conditions
and policies and characteristics of the industry and business
characteristics of the Company, follow regulatory requirements,
including the Shanghai Stock Exchange's Guidelines for ESG
Information Disclosure of Listed Companies in Shanghai Stock
Exchange and the Stock Exchange Company's ESG Reporting Guide, and
take into account the issues of concern of the capital market.
We sorted the material issues according to two dimensions,
"importance to the Company's sustainable development" and
"importance to stakeholders", and generated a matrix of material
issues of Air China's social responsibility.
Quantitative: Air China has developed a set of standardized
management tools of ESG indicators, covering the Company's
headquarters management support divisions, business management
companies, branch bases, and major subsidiaries. Air China
regularly collects data of key indicators of quantitative
disclosure in all environmental categories and some social
categories in the social responsibility report guidelines, and
summarizes and discloses them at the end of each year. The
calculation method and details of reference standards of the
quantitative data in the environmental categories in this report
can be found in chapters of the report.
Consistency: This report has no major adjustments to social
responsibility reports in previous years in terms of the scope of
disclosure and employs consistent statistical methods for
disclosure.
Corporate Governance
Air China has improved corporate governance. We promote the
construction of the compliance management system and regulate the
construction of internal control systems and institutions to
strengthen the Company's ability to resist risks. Each special
committee of the Board of Directors of the Company exercise their
power according to the respective working rules. They gain deep
understanding of the production, operation and financial condition
of the Company by convening meetings regularly, listening to
specific reports and conducting examination, investigation and
research, so as to provide various suggestions on the Company's
development strategies, risk control, standardized operation, as
well as nomination and appointment of directors and senior
management, etc., which have demonstrated their professional
advantage and support to the scientific decision-making of the
Board of Directors.
Improving operation efficiency of the Board
Air China organizes the General Meeting of Shareholders, the
Board of Directors and its special committees, and the Board of
Supervisors in accordance with laws and regulations, and
strengthens the communication on proposals through report meetings
of independent directors and board secretaries. We have improved
the systems for the internal control of information disclosure and
the collection of proposals for board meetings, and added 12
procedures, involving the assumption and departure of directors and
supervisors and the management of web resources for corporate
governance.
Deepening the theoretical exploration and practice of corporate
governance
Air China conducted in-depth research and published three
articles on improving the quality of listed companies and building
the board of directors. We participated in the revision of the
Company Law and provided opinions and suggestions to the Securities
Regulatory Commission. In 2020, a total of 12 board reports and
media releases and four director survey reports and media releases
were compiled, and special corporate governance training was
carried out to popularize governance concepts and promote
governance culture.
Improving quality of information disclosure
Air China improved the information disclosure management
mechanism with the view of ensuring equal access of all
shareholders to the information of the Company and protecting the
rights and interests of investors. In 2020, we successfully
completed the compilation and disclosure of the regular reports and
interim reports as well as shareholders' circulars in Shanghai,
Hong Kong and Japan.
Enhancing investor relations
Air China participated in a number of domestic and foreign
summits and investment strategy conferences, held nearly 50
one-on-one meetings and group meetings, and received more than 80
domestic and foreign institutions and companies for surveys and
telephone conferences. Air China also held online annual and
semi-annual performance briefings to update and answer investors'
concerns in a timely manner.
Directors' inspection in Zhaoping County, Guangxi
From November 25 to 27, Air China's independent directors Wang
Xiaokang, Duan Hongyi, and Li Dajin, went on an inspection trip to
Zhaoping County, Guangxi, the Company's paired region for poverty
alleviation. The inspection delegation visited the honey processing
plant of the bee industry, demonstration base of ecological tea,
planting base of passion fruit, and the Community Health Center in
Zhaoping County to inspect the outcome of Air China's partner
assistance and construction assistance projects and effectiveness
of assistance. They had in-depth exchanges with local officials and
held special seminars.
Directors' inspection at Ameco
On September 22, independent directors Wang Xiaokang, Duan
Hongyi, Li Dajin and employee director Xue Yasong traveled to
Aircraft Maintenance and Engineering Corporation Limited (Ameco)
for inspection. Independent director Hui Hon-chung, Stanley
attended the meeting by phone. Through the inspection, the
directors had a full understanding of Ameco's history,
organizational structure, construction of maintenance and safety
systems, market expansion and business development, and
technological innovation, which was helpful for the directors in
better performing their duties.
2 General Meetings of Shareholders
7 Meetings of the Board of Directors
Performance of Responsibility of Directors in 2020
8 Meetings of the Audit and Risk Control Committee
3 Meetings of the Strategy and Investment Committee
4 Meetings of the Nomination and Remuneration Committee
2 Meetings of the Aviation Safety Committee
Governance Recognition and Awards in 2020
Top 100 Chinese Listed Company in 2020
Golden Bee Excellent CSR Report 2020 Evergreen Award (Two
Star)
CNR's 2nd selection of Listed Company Most Trusted by
Investors
Best New Media Operation on the Main Board
Best Listed Company
Best Board Secretary of Listed Company
Board of Directors ESG Statement
Air China's Board of Directors is the highest responsible and
decision-making body for ESG affairs. It supervises affairs
concerning ESG that may affect the Company's business or operation,
shareholders, and other stakeholders by listening to reports by ESG
implementation units at regular communication meetings to ensure
the consistency between ESG concepts and corporate strategies. The
Board shall be responsible for approving and confirming the results
of communication with stakeholders and the identification of
material issues and reviewing and approving the Company's ESG
reports.
The Board has established a Corporate Social Responsibility
(CSR) Leadership Panel, which is responsible for formulating CSR
strategy and approving plans, and guiding the promotion and
implementation of CSR work. It has also established an Office of
CSR Leadership Panel, which is responsible for formulating annual
CSR plans, organizing and coordinating the implementation of CSR
plans and the progress of work tasks.
Based on the external macro socio-economic environment and the
Company's development strategy, Air China regularly evaluates the
importance of ESG issues, discusses and identifies the Company's
ESG risks and opportunities, and regards the management and
improvement of key issues as its annual ESG strategic work. The
Board of Directors reviews and confirms the results of the
materiality assessment, takes the key issues as part of the
formulation of the Company's overall strategy, and supervises the
management and performance of these issues.
In 2020, the Company set multiple ESG goals in greenhouse gas
emissions, exhaust emissions, and work safety, and monitored them
on an on-going basis. The Board of Directors regularly reviewed the
progress of the goals and the implementation strategies and action
plans of the annual objectives.
This report fully discloses the progress and outcome of Air
China's ESG work in 2020, which was reviewed and approved by the
Board of Directors on March 30, 2021.
Guidance of Party Building
In 2020, in the face of the decisive victory of building of a
moderately prosperous society, COVID-19 prevention and control, and
the end of the 13th Five-Year Plan, the CPC Air China Committee
thoroughly implemented the essence of General Secretary Xi
Jinping's important speeches and the major decisions and
arrangements of the CPC Central Committee and led and coordinated
the staff to win the three tough battles in pandemic prevention and
control, work safety, and operational efficiency. CPC organizations
at all levels and Party members and cadres of Air China remained
true to their original aspiration and kept their mission firmly in
mind in the face of challenges and gave full play to their role as
a battle fortress and an exemplary vanguard.
Strengthening the leadership of the CPC Committee
The Party 's strong leadership is the fundamental guarantee to
deal with the risk challenge. We must give full play to the
leadership of the Party Committee and strengthen its leadership
responsibilities to guide the development of Air China.
First, Air China resolutely achieves "two upholds (to resolutely
uphold General Secretary Xi Jinping's core position on the Party
Central Committee and in the Party as a whole, and resolutely
uphold the Party Central Committee's authority and its centralized,
unified leadership)". Air China improved the "first agenda" system
and the theoretical study system for Central Group of the Party
Committee, established a pandemic briefing system, and strived to
ensure that each of the CPC Central Committee's major decisions and
arrangements was implemented or responded.
Second, Air China better arms itself with theory. We took
studying and implementing the essence of General Secretary Xi
Jinping's important instructions and the essence of the Fifth
Plenary Session of the 19th CPC Central Committee as an important
political task in the near future, improved learning, education,
and training systems, and promoted the study, upholding, and
practice of Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era.
Third, Air China upholds the leadership of the Party in every
detail. Air China revised the Rules of Procedure of the Standing
Committee of the CPC Air China Committee and clarified the
pre-discussions; formulated a decision-making list of major issues,
major personnel appointments and dismissals, basically clarifying
the responsibility of each governance body; and further specified
and institutionalized General Secretary Xi Jinping's instruction
that we should adhering to the major political principle of the
Party's leadership over state-owned enterprises and the orientation
of state-owned enterprises' reform of establishing a modern
corporate system.
Fourth, Air China thoroughly fulfills its primary
responsibility. We formulated a responsibility list, improved the
implementation mechanism, assigned primary responsibility to
different levels, and promoted fully exercising Party
self-governance with rigor in an intensive manner at the primary
level. We strengthened its political responsibility, attached
importance to the follow-up work after the inspection, and
consolidated and expanded the outcome of the inspection. We also
worked tirelessly to oppose formalism, bureaucratism, hedonism, and
extravagance, and carried out the campaign of "Month of Party
Conduct Improvement and Integrity Promotion" to create a clean
atmosphere.
Fifth, Air China assigns specific Party building
responsibilities. We optimized our Party-building responsibility
evaluation system, prioritized the performance of leading bodies
and cadres in major challenges in evaluation, established a correct
orientation, and strengthened the role of the "baton". We
introduced management measures on strengthening the vertical
management of the Party building work of local units and
established a regional Party building pattern with clear
responsibilities, distinct boundaries, and coordinated
operation.
Strengthening the organizational strength of Party organizations
at the grass-root level
Primary Party organizations are the foundation of all work and
fighting capacity and battle fortresses on the front line. We must
highlight political functions, consolidate primary organizations
and the foundation, and effectively transform organizational
strength into fighting capacity.
First, Air China emphasizes initiative. We highlight stimulating
the initiative, enthusiasm, and creativity of primary Party
organizations and Party members. We organized a Party member
commando team to the front line, steadily and orderly promoted the
work of joining the Party at the front line, and called on Party
members, employees and the masses to voluntarily donate to support
pandemic prevention and control.
Second, Air China emphasizes regulation. We enforced the
Regulations on the Work of the CPC Primary Organizations in
State-owned Enterprises and the Regulations on the Election of CPC
Primary Organizations, organized surveys on primary Party
officials, carried out special inspections on the recruitment of
Party members, and launched an information system for Party
building in central enterprises. We also encouraged Party
organizations at all levels to make up for their shortcomings.
Third, Air China emphasizes cohesion. We cared about its
employees and allocated special funds to support primary Party
organizations to prevent and control the pandemic. We stimulated
the vitality of young people and organized a youth commando team
for volunteer services based on the service needs, giving full play
to the positive role of Air China's youth. We put efforts in the
united front, improved the system and mechanism of the united front
work, and extensively gathered forces from different sectors.
Strengthening the support of cadres
Air China earnestly practices the Party's organizational line in
the new era and improved the systems and mechanisms for Party
cadres and talents. We have formed a loyal, clean, and responsible
team of high-caliber and professional cadres for the needs of
business development and cultivated high-caliber talents with both
ability and political integrity to support high-quality
development.
First, Air China strictly selects and appoints cadres. We
improved its management system and built a "1+N" system framework
around the reform of promotion, entry and exit, and salary
adjustment: horizontally, focusing on the five systems for cadre
management and improving management methods; vertically, completing
the filing of cadre management policies and improving the
differentiation tiered and categorized management system.
Second, Air China selects the best cadres for the leading group.
We strengthened the overall planning for the construction of the
cadre team and improved the working mechanism. Through special
seminars, we clarified the status of the second and third-level
leading bodies and young cadres, established the principles for the
use of young cadres, and optimized the team structure and age mix
to enhance work synergy.
Third, Air China strictly supervises cadres. We promoted
normalized supervision, improved the four joint mechanisms for
information inspection, and carried out thorough investigation. We
practiced "managing vital roles, key segments, milestones, and
critical moments".
Fourth, Air China attaches great importance to the construction
of a talent team. We strengthened the top design and further opened
up channels for talent development. We stimulated the vitality of
talents, strengthened the construction of internal talent exchange
platforms, significantly expanded the scope, depth, and breadth of
talent exchanges, greatly improving the quality of exchange. We
made scientific and accurate plans for the allocation of human
resources, revitalized internal stocks of human resources, and
enhanced the efficiency of human resources. During the pandemic,
Air China innovatively established a "shared employees" management
model to strengthen its support for pandemic prevention and
control.
Strengthening the cohesion force of Party members, cadres, and
employees
Our greatest confidence in overcoming all risks and challenges
lies in uniting cadres and employees to strive together. We must
earnestly implement the mission of publicity and ideological work
under the new situation and gather strong energy to overcome
difficulties.
First, ideological guidance. Air China strictly enforced the
ideological accountability system and earnestly carried out the
work of publicity and public opinions on pandemic prevention and
control. We worked on the key point of the publicity and
ideological work of the year, highlighted positive publicity, and
built a strong main position for publicity and ideological
work.
Second, increasing cohesion. Air China put efforts in
ideological and political work, focused on winning the three tough
battles in pandemic prevention and control, safety, and operational
efficiency, and promptly started situation publicity and
ideological mobilization, guiding employees to advance and solve
problems together with the Company. We strengthened the publicity
of models and showed the spirit of Air China staff members in
fighting the pandemic and rising to challenges, condensing strong
positive energy to overcome difficulties together.
Third, cultural promotion. Air China strengthened its overall
planning and strength integration for corporate culture and brand
development. We strengthened the construction of our cultural
communication platform and promoted the deep "immersion" of culture
through the extensive participation of employees.
Fourth, image building. Air China focused on preventing the
coronavirus from re-entering the country and undertook major
transportation support tasks and poverty alleviation in targeted
areas. Under heated themes such as "domestic-made aircraft carrying
the national flag to the blue sky" and "the coating, first flight,
linked flight of the Winter Olympic Snow Flight", we organized and
planned a number of promotion campaigns and launched heart-touching
works such as Warm Broadcast from the Captain and The Flight to
Spring, effectively enhancing the corporate brand image.
Strengthening Execution
In the face of risks and challenges, Air China remained stable,
overcome the impact of the pandemic, and steadily promoted the
completion of all tasks with high quality as scheduled.
First, sparing no efforts in the fight against poverty. Air
China implemented the "four remainings (responsibility, policies,
assistance teams, and oversight remaining in areas out of poverty)"
and focused on poverty alleviation in targeted areas without
reducing its efforts and responsibilities. All counties and
villages paired with Air China have been officially lifted out of
poverty.
Second, making solid support for the preparations for the Winter
Olympics. Air China strengthened the organization and leadership in
the transportation support for the Winter Olympics and completed
several important transportation support tasks, which was highly
recognized by the Winter Olympics Organizing Committee, the Beijing
Municipal Government, and its service objects.
Third, firmly implementing the requirements of the central
inspection and rectification. Air China implemented rectification
and reforms with high responsibility and pragmatic and effective
measures and put efforts in the follow-up work after the central
inspection.
General Risk Control
In 2020, the COVID-19 pandemic had an impact on the upstream and
downstream industries related to the aviation industry and brought
tremendous pressure on risk prevention and control. Air China
accelerated the construction of its risk prevention, control, and
monitor system. We revised our reporting mechanism for major
business risk events and urges all of our investment companies to
detail their risk level standards and major risk event reporting
systems. We also applied information technology to launch and
test-run a unified management platform for internal control manuals
to manage internal control manuals in a centralized manner and
maintain the standardization and effectiveness of versions of the
Company's internal control manuals. By continuously improving the
ability to prevent and resolve major risks, Air China promoted
steady operation and sustainable development.
Anti-corruption and Business Ethics
Air China strictly abides by national laws and regulations. We
have formulated several internal rules and regulations, including
the Measures for Supervision and Discipline, Guidelines for Risk
Prevention and Control Regarding Corruption, and Opinion in respect
of Strengthening the Daily Supervision of the Inspection and
Supervision Institutions of Discipline. We have also strengthened
the construction of institutions to make sure officials don't dare
to, are unable to, and have no desire to commit corruption, and
established a comprehensive supervision system to ensure that the
Company's operation is clean and efficient. In 2020, Air China was
not involved in any corruption lawsuits.
Integrity Promotion Campaigns of Air China in 2020
-- In September, five activities under the theme of "Month of
Party Conduct Improvement and Integrity Promotion" were launched,
including an online quiz on Party disciplines and regulations.
-- In 2020, 1,755 activities for Party conduct improvement and
integrity promotion were held, covering 83,295 participants.
-- The WeChat official account of "Clean Air China" was put into
use and an online quiz on Party disciplines and regulations was
carried out to all Party members at the Company.
-- In the "Clean Air China" micro-video contest, 76 works were
submitted, among which 29 were selected as excellent works.
Management of Intellectual Property
Air China implements the Guiding Opinions on Advancing the
High-quality Development of the Intellectual Property Work of
Central Enterprises issued by the SASAC. We enhance its independent
innovation capabilities, strengthen internal intellectual property
management, and respect external intellectual property rights. In
2020, the Company provided a whole-process protection and support
of intellectual property for the digital transformation innovation
laboratory.
Numbers of Intellectual Property
Registered trademarks at home and abroad: over 2,750
Registered patents at home and abroad: over 310
Corporate Culture
In 2020, in terms of corporate culture, Air China worked under
the guidance of Xi Jinping Thought on Socialism with Chinese
Characteristics in the New Era and the essence of the 19th National
Congress of the CPC, thoroughly practiced the core socialist
values, and carried out cultural communication during the pandemic
via multiple channels and in multiple forms, focusing on epidemic
prevention and control. We carried out a cultural communication
activity themed by "Fulfilling Responsibilities, Working
Whole-heartedly, and Building a Better Future", which presented
from different angles the Company's performance of responsibility
in resolutely implementing the national strategy, steadily forging
ahead in the three critical battles against potential risk,
poverty, and pollution, and winning the "three tough battles". Air
China's corporate culture work gave full play to the leading role
of culture, highlighting "cultural progress" and "responsibility
fulfillment", to provide ideological motivation for the Company's
overall development and strategic advancement.
Pandemic Prevention: Fighting Against COVID-19
Facing the difficulties and challenges brought by the COVID-19
pandemic, Air China resolutely implemented the essence of General
Secretary Xi Jinping's important speeches on coordinating regular
pandemic prevention and control and economic and social development
and promoting the resumption of work and production, as well as the
decisions and arrangements of the CPC Central Committee and the
requirements of governing agencies. We coordinated and won the
three tough battles in pandemic prevention and control, safety, and
operational efficiency, strictly managed production organization,
and strengthened the control over key links. Air China's employees
were fearless of hardships and faced out the difficulties. They
loyally fulfilled the political responsibility and social mission
of the flag carrier.
Milestones of Air China in the Fight Against COVID-19
January 22
The Air China Pandemic Prevention and Control Leading Group was
established, with the primary responsible comrade of the Party
Committee as the group leader.
January 25
Air China undertook the charter mission of the National Health
Commission to sent the first Sichuan medical team from Chengdu to
Wuhan.
January 26
Air China undertook the charter mission of the National Health
Commission and sent the first Beijing medical team from Beijing in
two planes and the first Tianjin medical team from Tianjin in one
plane to Wuhan.
February 5
Air China chartered flight CA081 traveled from Beijing to Osaka,
Japan, to pick up 223 Hubei passengers stranded there back to
Wuhan.
February 7
Air China took the lead in launching the "preighter" operation
mode, using passenger planes to perform cargo flights to ensure the
smooth flow of international cargo and the continuous flow of the
supply chain, providing strong support for the smooth operation of
the international logistics chain.
February 7
Air China sent charter flights CA041 and CA045 to Wuhan with 668
medical workers and 28 tons of anti-epidemic supplies. Among Air
China's charter flight missions in the fight against the pandemic,
this was the largest number of people transported in a single
batch.
February 26
Air China provided customized aviation services of charter
flights for work resumption. Its flight CA4011 transported 124
returning workers from an engineering and technology company in the
Tibet Autonomous Region from Chengdu to Qamdo Bangda Airport.
February 28
The Chengdu-Frankfurt CA431 flight flew directly to Europe from
Shuangliu International Airport. This was the first
intercontinental route resumed in Southwestern China under the
influence of the pandemic.
March 31
As of that day, Air China had performed 31 charter flights for
medical teams departing from Hubei and transported more than 3,500
medical workers to Sichuan, Inner Mongolia, Jiangsu, Shandong,
Liaoning, Beijing, and other provinces and cities.
April 8
Flight CA8221 carried 105 passengers from Wuhan, Hubei to
Chengdu, Sichuan, marking the official resumption of Air China's
passenger routes in Wuhan after the city was locked down for 76
days.
April 15
Air China dispatched Flight CA042 to pick up the last batch of
185 national aid medical team for Hubei from Wuhan to Beijing.
April 17
Air China completed the Flight CA910 Moscow-Beijing mission,
which was the first flight to implement nucleic acid testing for
passengers before boarding.
May 11
Air China issued the Work Plan and Contingency Plan of Air China
Group for Pandemic Prevention and Control in Air Transportation
during the "Two Sessions" and established a leading group for
pandemic prevention and control in air transportation during the
"Two Sessions".
September 3
Air China Flight CA746 arrived in Beijing from Phnom Penh,
Cambodia, marking the official resumption of international direct
passenger flights of Beijing.
September 8
A national conference was held in the Great Hall of the People
in Beijing to honor fighters against the COVID-19 pandemic. The
Flight Crew Department of Air China was awarded the national
exemplary team in fighting COVID-19, and chief purser Liu Tingting
was awarded the national exemplary individual in fighting
COVID-19.
October 22
Air China Hubei Branch was awarded the national exemplary team,
and four employees, namely, Chen Hongbing from the Commercial
Committee, Cheng Xu from the Ground Services Department, Ren
Honghong from the Logistics and Support Department, and Wang
Yandong from the Air Marshall Department, were awarded the national
exemplary individuals in SOE's fight against COVID-19 by the
state-owned Assets Supervision and Administration Commission.
October 23
The Passenger Service Center of the Ground Services Department
and three other units of Air China and Ge Peng from the Information
Management Department, Lu Yan from Ameco, and seven others at Air
China were awarded the honorary titles of exemplary teams and
exemplary individuals in the national transportation system in the
fight against the COVID-19 pandemic.
Organizational Leadership in the Fight Against COVID-19
On January 22, Air China established a leading group for
pandemic prevention and control, chaired by the primarily
responsible comrade of the Party committee and set up a
comprehensive leading mechanism for pandemic prevention and
control. As the situation of the pandemic changed, we set up eight
special working groups, covering production and operation,
marketing, capital guarantee, internal prevention and control,
comprehensive contingency response, public opinion, overseas
pandemic, and international cooperation. Air China won the
air-ground coordinated fight against the pandemic with its swift
response and the standard of "top priority with no bargaining".
Party members being vanguards and role models
The Air China Party Committee gave full play to the role of
Party cadres, organizations, and teams. 45 employees joined the
Party at the front line and 205 Party member commandos and 141
youth commandos were formed, providing a strong support for
pandemic prevention and control.
Global Anti-pandemic Action
In the face of the pandemic, Air China kept the aviation mission
in mind and insisted on the priority of life, the people, and the
country. We worked hard to prevent the coronavirus from spreading
within the city/region or beyond and made contributions to ensuring
safety, supporting the fight against the pandemic, protecting our
compatriots, stabilizing supply, and helping production resume.
Since the outbreak of the pandemic, Air China took the
initiative to take responsibility and action. For major
transportation tasks, Air China provided the guarantee of "top
priority with no bargaining" and safely pickup up nearly 10,000
Chinese compatriots from Japan, Italy, and other places.
216 charter flights for anti-pandemic transportation
31,000 people transported
1,403 tons of anti-pandemic supplies
Over 40 flights for evacuation of overseas Chinese
Racing against time to transport anti-pandemic workers and
supplies
On January 25, the first day of the Lunar New Year, Air China's
first chartered flight carrying Sichuan's first medical team of 138
medical workers and more than 500 pieces of medical supplies left
Shuangliu Airport, Chengdu, for Wuhan, which marked a quick start
of Air China's fight against pandemic.
On January 26, Air China undertook Flights CA043 and CA041 to
transport Beijing first medical team and first batch of medical
supplies to Wuhan.
Shenzhen Airlines, Inner Mongolia Company, and Shandong Airlines
undertook charter flights to transport medical teams from Jiangsu,
Inner Mongolia, and Shandong to Wuhan for medical aid.
"Linked flight" guaranteeing operation of international air
routes
For the normal personnel exchanges between China and the US, Air
China began operating the Beijing-Los Angeles-San Francisco and
Beijing-New York-Washington air routes on February 11 and 12,
respectively. It was one of the measures taken by Air China to cope
with huge market pressures while resolutely fulfilling its
political and social responsibilities at a time when foreign
airlines suspended the operation of routes to China.
Escorting the joint working group to the UK
At 11:26 am on March 28, Air China Flight CA085 carrying 15
members of the Joint Working Group of Shandong Province to the UK
from Jinan Yaoqiang Airport arrived at London Heathrow Airport.
Besides the members of the working group, this flight also carried
17.5 tons of anti-pandemic supplies.
Anti-pandemic action by overseas staff members of Air China
Air China notified its overseas branches to give priority to
transporting anti-epidemic supplies to the motherland, including
donated masks, protective garments, and other medical and
anti-epidemic supplies. Once the notice was issued, it received the
response and full support of overseas regional sales offices and
terminals. Overseas business offices and terminals of Air China in
Paris and other places actively provided free transportation
services for donated anti-epidemic supplies.
The operation mode of "preighter"
To meet the air cargo demand during the pandemic and guarantee
the smoothness and stability of the global supply chain, Air China
made full use of its passenger aircraft resources and advantageous
flight network and took the lead in launching the "preighter"
operation mode, using passenger aircraft to undertake cargo
flights.
To safeguard the travel experience and the basic rights and
interests of passengers during the pandemic, Air China improved its
services based on passengers' needs. We comprehensively upgraded
the online information display, cancellation and rescheduling
services, in-flight supplies, and meal preparing, committed to
creating an air journey that allowed passengers to rest
assured.
Information update on the official website
Air China set up a "special section on pandemic prevention and
control" on its official website and APP to publicize the effective
measures taken by Air China for passengers under regular pandemic
prevention and control. The section included six parts, namely,
safeguard measures, travel instructions for domestic flights in
China, travel instructions for international/regional flights,
adjustments to Air China's service policies, instructions for
carrying pandemic prevention and control items onboard, and
introduction to auxiliary functions of Air China APP.
Upgrades for the cancellation and rescheduling services during
the pandemic
Air China attached great importance to the healthy travel of
passengers, strictly enforced pandemic prevention and control
policies such as reducing the flow of people, and earnestly
implemented pandemic prevention and control instructions throughout
the entire service process to ensure passengers' safe travel. Based
on the actual needs of pandemic prevention and control, we adjusted
the rules for cancellation and rescheduling of passenger tickets in
a timely manner, with a total refund of RMB15.9 billion.
New functions for international ticket booking/rescheduling
Faced with the ever-changing international developments of the
pandemic, the introduction of the "Five Ones" policy (each country
to send one flight per airline per week into its borders), and
major changes in international flight operation, Air China strictly
implemented the requirements of the Notice of the Civil Aviation
Administration on Further Clarifying International Air Ticket Sales
during the Pandemic and adjusted its international ticketing.
On April 27, Air China launched international ticket booking,
rescheduling and waitlist functions on its APP. After the
passengers filled in their travel needs, the APP system would
automatically sort them out and arrange seats for them, better
meeting their travel needs.
Advancing Stability on the Six Fronts and Security in the Six
Areas
Air China thoroughly implemented the requirements of the CPC
Central Committee and the State Council on advancing stability on
the six fronts (employment, the financial sector, foreign trade,
foreign and domestic investments, and expectations) and security in
the six areas (employment, basic living needs, operations of market
entities, food and energy security, stable industrial and supply
chains, and the normal functioning of primary-level governments).
We scientifically studied and judged industry trends, turned
pressure into motivation, and made solid progress in resuming work
and production, stabilizing jobs, and expanding employment, which
reflected our mission of sharing burdens for the Party and
fulfillment of responsibilities for the country.
Keeping employment stable
Air China actively responded to the SASAC's special action of
"stabilizing employment and creating more jobs against the
pandemic". Besides stabilizing in-position employees, it focused on
ensuring the recruitment of key groups, including college
graduates, migrant workers, and labor from poor areas.
Air China participated in the "Employment in Spring" campaign
and continued to organize special job fairs in the paired
assistance areas to effectively solve employment problems for
laborers in poverty-stricken areas.
Resumption of work and production
Air China actively promoted the resumption of work and
production of its subsidiaries. Relying on our airline network,
efforts were made to ensure the smooth flow of logistics and
people. During the pandemic, Air China as an "escort team"
undertook a total of 154 flights for resumption of work and
production and reopen of schools and transported a total of 18,000
passengers for enterprises, institutions, and schools.
Customized flights supporting resumption of work and
production
On June 6, 78 technical experts of China Metallurgical Group
took an Air China CA553 charter flight from Shuangliu International
Airport, Chengdu, to Karachi, Pakistan. This was the first
international passenger charter flight for resumption of work and
production from Chengdu.
Anti-pandemic Care for Employees
Air China took a variety of measures to help prevent and control
the pandemic within the Company, protected the health and safety of
employees, and provided anti-pandemic care for employees. We
provided extensive care for employees, held online classes on
pandemic prevention and control and emotional management, and
provided regular online video consultation services to protect
employees' mental health.
In 2020
47 online and offline one-on-one consultation held by the
Company
78 online thematic classes
32,342 participants
116 group tutoring sessions for general staff and air crew in
quarantine areas
Air China allocated special funds for the fight against the
pandemic to provide support for employees to return to work.
01 Air China allocated special funds of RMB 9.58 million for
pandemic prevention and control with preference for key areas and
key positions.
02 Air China allocated a special subsidy of RMB 14.5 million for
pandemic prevention and control to primary units and temporary
relief and subsidy to employees in difficulties.
03 Air China purchased employer liability insurance for COVID-19
for all employees and provided timely anti-pandemic supplies.
During the fight against the pandemic
RMB 500 million was invested in pandemic prevention and
control
172,000 nucleic tests were performed
Air China' Contribution to the Fight Against COVID-19
Air China donated RMB 10 million in cash to Wuhan and reduced or
exempted 149 small, medium, and micro enterprises in rent by about
RMB 20 million. Air China employees donated about RMB 5.74
million.
Air China's Flight Crew Department was awarded the national
exemplary team in fighting COVID-19, and chief purser Liu Tingting
was awarded the national exemplary individual in fighting COVID-19.
7 departments or subsidiaries and 17 employees of Air China were
commended by the SASAC and the transportation system.
The air crew of Air China showed the spirit of dedication. More
than 98,000 (including 68,000 pilots) person-times went through
quarantine and medical observation, with an average quarantine
count of 2.6 times and lasting period of more than 36 days. The
number of days of quarantine per capita in the Wide-body Plane
Division of the Flight Crew Department was more than 100 days.
Poverty Alleviation: Winning the Battle for Poverty
Alleviation
In 2020, Air China thoroughly implemented the essence of General
Secretary Xi Jinping's important instructions on winning the battle
against poverty and closely followed the goals and tasks in the
final and the toughest stage of the battle. We gave full play to
our expertise and deepened the "Aviation + Poverty Alleviation:
8+2" model in assisting the targeted areas to win the battle
against poverty. With the joint efforts of Air China and the local
people, Sonid Right Banner and Zhaoping County were lifted from
poverty as scheduled. In the performance evaluation of targeted
poverty alleviation, CNAHC was ranked "good", the highest rank, for
three consecutive years. The "Aviation + Poverty Alleviation: 8+2"
model of CNAHC was selected as one of the "Top 50 Integrated Cases
of Targeted Poverty Alleviation by Enterprises" by the former
Poverty Alleviation Office of the State Council. The Poverty
Alleviation Office of CNAHC won the title of "National Exemplary
Team for Poverty Alleviation".
RMB 40.03 million invested in assistance programs for the
targeted areas in 2020
RMB 10.36 million raised for assistance programs
814 primary cadres trained
4,076 technicians trained
RMB 56.28 million of farm and pasture products from the targeted
areas purchased by Air China
RMB 10.73 million of farm and pasture products from the targeted
areas sold under assistance
Leadership to Reach a Consensus
In 2020, Air China set the work requirements of "remaining the
intensity, standards, momentum, and teams". Executives of the
Company set an example took the lead to build consensus and
implement tasks.
2 meetings of the leading group on poverty alleviation held
6 trips of inspection and supervision to the targeted areas
15 exchange meetings and conference calls with key leaders of
the targeted areas
Regulations and Institutions for Long-lasting Effects
Air China improved the systems, regulations, and management
concerning poverty alleviation. We formulated and issued the
Promotion Plan for the "8+2" Key Projects for Targeted Poverty
Alleviation in 2020 and the Management Measures for the Targeted
Poverty Alleviation Projects and revised the Regulations on
Procurement of Special Farm and Pasture Products from Targeted
Areas for Assistance, further strengthening the management of the
poverty alleviation process.
In September 2020, Air China launched a special audit and
supervision, focusing on poverty alleviation funds and project
management and the evaluation of the outcomes of the poverty
alleviation projects. The purpose of this action was to urge the
targeted areas to implement the main responsibility for poverty
alleviation and support the poverty alleviation.
Multiple Measures Designed for Practical Targets
Assisting infrastructure projects for poverty alleviation
In 2020, Air China helped shore up the weak spots in people's
livelihood. In Sunit Right Banner, Air China supported projects
such as safe drinking water, improving the living conditions in
farming and pastoral areas, and enhancing the diagnosis and
treatment capabilities of community health centers. In Jiangkou
Village, Zhaoping County, Air China carried out infrastructure
construction projects, including village road hardening, street
lighting, safe drinking water, canal renovation, and construction
of public cultural facilities, promoting the improvement of the
living conditions in rural areas.
Deepening the "aviation +" model for poverty alleviation
Building an air bridge
On July 10, 2020, Air China's newly introduced passenger
aircraft ARJ21-700 flew from Beijing to Xilinhot, increasing the
density of Xilinhot's flights. By building an air bridge, we
provided important traffic guarantee for tourism in Sonid Right
Banner, Xilingol League.
Extensive communication and promotion
Air China leveraged in-flight magazines and videos, terminal
lounges, hotel front desks, WeChat official accounts, Douyin, and
other channels to set up poverty alleviation sections, and play
relevant programs. We also organized media groups for special
reports in the targeted areas, which greatly increased the
popularity and reputation of these areas.
Focusing on industry development
In 2020, to build pillar industries with local features, Air
China built a core breeding farm for Sonid sheep and a camel farm
in Sonid Right Banner, and a fully-automated tea production and
processing plant in Zhaoping County. In May 2020, the Jiangkou
Villagers' Cooperative was rated as one of the first batch of
demonstration rural collective economic organizations in Guangxi
Zhuang Autonomous Region for its outstanding economic performance
and prominent demonstration effects. The former "hollow village"
became a well-known "demonstration village".
Intensifying poverty relief through consumption
Air China insisted on purchasing instead of donations and cash
assistance. Relying on the Company's labor union, e-commerce
platform, and airline catering, Air China called on employees to
purchase, drived customers to source, and promoted the products
among passengers, and assisted the two places in building and
promoting local self-operated e-commerce platforms, such as
Zhaoping Premium and Sonid Premium. We also launched Youth Air
China, an innovative form of live broadcasting sales for poverty
alleviation, on Douyin, with a special live broadcasting event of
"I Have a Sheep in the Grassland".
Exploring ecosystem services for poverty alleviation
Focusing on green poverty relief
Air China joined hands with China Environmental Protection
Foundation and Chinese Academy of Forestry to trial buffalograss in
Sonid Right Banner, solving the problem of grassland degradation
with technology and filling the technical gap in China's
buffalograss breeding. This increased the income of farmers and
promoted the deeper integration of the ecological chain, industrial
chain, and value chain.
Stimulating internal momentum for poverty alleviation
Air China boosted the mutual promotion of Party building at the
primary level and poverty alleviation. In Sonid Right Banner, Air
China teamed up with ulaan mochir, the "red art pioneers" on the
grassland, providing necessary musical instruments and costumes for
them, to support them in creating more and better works so as to
satisfy the diverse cultural needs of farmers and herdsmen. In
Jiangkou Village, Zhaoping, Air China assisted in the construction
of a Party-masses service center and provided necessary support for
village-level organizations to unite the masses.
Air China held a variety of training sessions and organized and
operated training programs for enterprises in the targeted areas,
including management training, e-commerce skills, husbandry
planting and breeding techniques, and vocational skills.
Air China carried out a diversity of volunteer teaching programs
for poverty alleviation. We extended the permanent resident
volunteer teaching model and selected seven outstanding young
volunteers for long-term volunteer teaching in Jiangkou Village,
Zhaoping. Focusing on aesthetic education, we established the
Children's Choir at Jiangkou Primary School in Zhaoping County and
helped to train many core music teachers in the local area. We also
actively introduced assistance partners to deliver online classes
and offer scholarship to children in the region, so as to gather
poverty alleviation efforts.
1 Safety: BUILDING on the Foundation for Development
"Safety first" is the foundation on which an aviation enterprise
is established. "Establishing the concept of safe development to
ensure continuous safety" has been set as Air China's first goal of
the "five big issues for the next five years". In the face of the
difficulties and challenges brought by the COVID-19 pandemic, Air
China always strictly abides by the relevant national laws and
regulations, with an aim to protect the safety of passengers, staff
and flights by consolidating its foundation of safety management,
improving the ability in safety management and control, and
promoting the establishment of a culture of safety, thereby
ensuring safe operation.
1.1 Consolidating Safety Management
Adhering to the concept of safe development, Air China strictly
abides by relevant national laws and regulations and the Rules on
the Examination and Approval of the Operation Certification of
Large Aircraft Public Air Transportation Carriers (CCAR 121). We
have adopted a zero-tolerance approach to hidden safety hazards and
strictly implemented the accountability system for safety
production, with a view to promoting the establishment of safety
management system that is data-driven and risk-oriented with
performance being the standard of assessment to improve the ability
in risk management and control. In 2020, there were no accountable
incidents of air transportation due to the liability of Air China,
which maintained a leading safety performance.
Fulfilling the primary responsibility of safety
-- Improving the work safety accountability system and detailing
the investigation for safety accountability
-- Clarifying the responsibilities of directors at different levels
Fulfilling the safety performance targets
-- Assigning the safety performance targets of the Company to
subsidiaries and to specific positions
-- Clarifying the responsible persons, scope of responsibility, and evaluation criterion
1.1.1 Strengthening risk prevention and control
To optimize the risk prevention and control mechanism regarding
safety, Air China implemented the safety quality assessment system
based on quantifying risk analysis to regularly assess key risks
and sources of material risk.
01 The database for sources of risk in flight, maintenance, and
operation control systems was completed; the overall risk index
fell by 22.6% from the year before.
02 A three-level risk management and control mechanism of "Air
China-Department-Front Line" was formed.
03 Air China collected and processed different types of safety
information and issued risk warnings for important hazards in a
timely manner.
04 Air China upgraded Analysis Ground Station system to improve
the timeliness and accuracy of data monitoring.
1.1.2 Enhancing emergency response
To thoroughly implement the Civil Aviation Law of the People's
Republic of China, Emergency Response Law of the People's Republic
of China, and Work Safety Law of the People's Republic of China,
carry out General Secretary Xi Jinping's important instruction on
emergency management, and promote high-quality development of
emergency management, Air China has improved the emergency
management system, comprehensively enhanced the emergency
management capabilities, improved the emergency command system, and
promoted the construction of emergency mechanisms. We upgraded our
emergency management system and improved our emergency response
capabilities. We have also strengthened the publicity of emergency
management and innovatively promoted safety publicity and
education.
01 -- Continuing to revise and improve emergency plans and
checklists
02 -- Building stronger emergency response teams
03 -- Carrying out targeted emergency training activities and
emergency drills
04 -- Improving emergency management information collection and
the emergency information reporting mechanism
Emergency drills
According to the Emergency Handling Manual and the requirements
of the Work Safety Month 2020, the Operation Control Center of Air
China organized the Company's operation support units to carry out
the emergency drill of the year of 2020 in the Beijing Operation
Control Emergency Command Center on June 29. The center raised
practical and feasible improvement measures for the problems that
arose in the drill, laying the foundation for improvement of
emergency management and the Company's emergency response
capability.
1.1.3 Strengthening regular management
For the daily operation process, Air China has established daily
and weekly reporting systems to keep abreast of the Company's
safety dynamics in a timely manner. The Aviation Safety Committee
held a meeting every month, where it arranged targeted safety tasks
in a timely manner based on the safety operation of the Company and
its units and the current characteristics of the safety issue of
the industry, to continuously improve and enhance safety management
capabilities.
1.2 Guaranteeing Safe Operation
1.2.1 Operation management
01 -- Strengthening digital operation management and risk
assessment prevention and control
02 -- Completing the launch of the smart decision-making
function of the MM module of the SOC system and the preparation of
the upgrade plan for the dispatch and release system
03 -- Promoting the construction of the operation monitoring
platform and completing sorting out the requirements and function
integration
04 -- Incorporating 11 types of fault message information of
A320 and 737NG series aircraft into the flight monitoring
system
05 -- Holding special discussion on the change of the
"preighter" operation mode
06 -- Designing and adjusting the layout of the aircraft cabin
and developing precautions against changes in the center of
gravity, cargo collisions, cabin fires, and other risks
07 -- Clarifying division of labor within the crew and
strengthening pre-flight preparation and technical training
1.2.2 Management of flight training
01 Carrying out special training to consolidate captains' skill
proficiency, summarizing the frequent unsafe incidents of key
aircraft, and carrying out technical investigation and reassessment
based on captains' refreshment
02 Strengthening the construction of the flight inspector and
instructor team and improving the construction of the full-time
simulator instructor and ground instructor team by setting the
position of technical pilot and the optimization of management
functions
03 Promoting the construction and application of the pilot
qualification system and carrying out targeted training based on
evaluation data
04 Based on the characteristics of the flight season, sorting
out the risks of the season and carrying out seasonal study and
examination
1.2.3 Maintenance
Air China promoted consistent standards and processes for
maintenance. We leveraged information construction to improve
management and reduce maintenance errors. We also launched Q-smart,
a digital system for safety and quality management, officially
starting intelligent and modular management.
Q-Risk
01 Safety information
02 Q-Radar
03 Q-Audit
04 Q-Cap
05 Q-Doc
06 TAS
2020, Ameco ranking seventh among the top ten suppliers of
airframe maintenance and repair
Focusing on employee development, the maintenance section set
positions of engineer, technician, and management and conducted
comprehensive inspection and training in performance, achievement
motivation, management potential, and language proficiency.
1.2.4 Fleet management
In 2020, in a complex operation environment, Air China promptly
replaced old aircraft, actively introduced new models and
equipment, and maintained stable performance in safety. In the
year, there were no accountable incidents of air transportation due
to the liability of Air China, which ensured safety in major
transportation missions.
Safe operation in 2020
Safe flight hours: 1.55 million hours
Accountable incidents of air transportation due to the liability
of Air China: 0
The Company ensured the safe operation of the new models. With
solid preparations for the introduction of ARJ21, we formulated
special measures to strictly control operational risks. In 2020,
three ARJ21 planes joined our fleet and flew for 1,198 hours
safely.
1.3 Promoting the Safety Culture
Air China strengthened the promotion of the safety culture based
on positive cases. In regular safety education, professional
training, and vocational skill competitions, Air China guided
employees to form correct safety awareness and behaviors and
created a positive safety culture and working atmosphere.
1.3.1 Enhancing promotion of the safety culture
Air China carried out a three-month special rectification
program promoting better working style. It also organized a
learning session themed by "Respect for Life, Regulations, and
Responsibility".
-- Organizing various kinds of events, such as skills
competition and themed writing contests, to consolidate and enhance
employees' safety awareness
-- Posting stories of exemplary employees on media to promote
and practice the spirit of civil aviation in the new era
-- Promoting civil aviation safety and culture to the public
through channels, such as Air China's APP, official Weibo and
WeChat account, and the activity on the National Safety
Consultation Day
1.3.2 Air China Vocational Skills Competition
In November 2020, the 17th Staff Position (Civil Aviation
Pilots) Vocational Skills Competition was held. Under the theme of
"improving flying skills and building a solid foundation for
safety", the competition aimed at improving pilots' professional
skills and all-round quality. More than 6,000 pilots participated
in the training and learning sessions of this competition. In the
end, two won the title of "National Civil Aviation Technical
Expert" and ten won the title of "CNAHC Technical Expert".
Total qualification training hours (divided by specialty) Person-hour
Flight: 123,341
Flight attending: 557,076
General training for ground workers: 182,070
Pilot Person-time
Safety training: 21,231
Flight simulator retraining: 12,320
Hazardous goods retraining: 2,751
Emergency retraining: 6,160
Training for employees to maintain specific qualifications*: RMB
230 million
Attendant Person-time
Safety training: 24,768
Hazardous goods retraining: 7,987
Emergency retraining: 13,294
Ground worker Person-time
Safety training: 12,899
Hazardous goods retraining: 5,487
During the pandemic, Air China developed and produced 119 online
courses for qualification training and carried out theoretical
training in the forms of online learning and livestreaming
instruction.
* Note: Employees' specific qualifications refer to the
qualifications of pilot, flight attendant, ground worker, and
dispatcher.
2 Service: A Heartwarming Journey
Air China remains true to its original aspiration, keeps the
concept of sincere service firmly in mind, benchmarks international
peers, and puts efforts into innovation. We are committed to
improving world-class service and passenger experience in the
entire process, so as to create a warm journey of "Credibility,
Convenience, Comfort, Choice" for every passenger.
2.1 Service Quality Management
To standardize passenger service management and improve service
quality on the basis of punctuality of flights, Air China has
developed its service management system. In 2020, in accordance
with the Guiding Opinions of the State Council on Launching Quality
Improvement Actions and the Implementation Opinions on Central
Enterprises Launching Quality Improvement Actions, Air China
prepared a special action plan for "building a service quality
brand" to comprehensively improve service quality.
2.1.1 Service management system
Standardization of products and services in the whole
process
34 standards were revised, including the Member Service
Standards, General Standards for Checked Baggage, and Compensation
Standards for Products and Services; one standard was added.
Baggage transport
The Manual for Passenger Baggage Transport Service was revised.
Handling of overbooking, abnormal baggage, and compensation for
baggage were regulated.
Cabin services
An Operating Procedure for Cabin Service was formulated to
standardize the cabin service process and operation of flight
attendants.
Interpretation of standards
Directions for Standard Interpretation was compiled, which
listed the standard and determined scenes for products and services
in the entire process with interpretations.
2.1.2 Service team building
Air China conducted various types of qualification and
on-the-job service training. To enrich the training models, Air
China developed Crisis Service, an online training video, relying
on the e-Learning platform, which covered all employees in the
service sector and comprehensively improved their service awareness
and skills.
Training of Employees in the Service Sector at Air China in
2020
Number of trainees (person-time)
Senior manager and above: 507
General employee: 27,369
Total training hours (hour)
0.52 million hours
Note: The service sector includes people from Sales Department,
Ground Service Department, Cabin Service Department and Stations
Management Department.
2.2 Forging Sincere Service
By ensuring the punctuality of flights and dynamically tracking
the needs of passengers, Air China improved its service quality,
put the national call of quality development strategy into
practice, and comprehensively improved the brand building of
service quality.
2.2.1 Guaranteeing the punctuality of flights
Punctuality of flights is the core of flight service quality and
the key to enhance passengers' satisfaction. Air China strictly
abides by relevant industry rules and regulations, such as Policies
and Measures of the Civil Aviation Administration on Controlling
Total Operations and Adjusting Flight Structure to Improve
Punctuality of Flights, continuously improved management procedures
and promoted the construction of a global ground support platform
for flights to improve the rate of punctuality of flights.
Measures to improve flight punctuality
Enhancing the forecast capability of flight monitoring and
enhancing monitoring and alert for irregular flights
Assessing the on-time performance rate and the rapid transit
success rate on a monthly basis
Preparing emergency plans for the flood season to ensure the
normal operation of flights
Improving the function for displaying real-time condition of
ground operation and the function of flight information
statistics
Enhancing the functions of ground production command system and
initiating the test of air-ground interconnection
Punctuality of flights (caliber of the Civil Aviation
Administration)
2018: 80.36%
2019: 81.83%
2020: 89.15%
2.2.2 Improving customer experience
Considering passenger experience as the core work and meeting
passengers' needs, Air China actively innovated and optimized its
service content and models to provide passengers with diversified
and excellent services.
Whole-process management of baggage
-- Speeding up the whole-process tracking of luggage and
promoting the Baggage Reconciliation System (BRS);
-- Launching online inquiry for the whole-process baggage
tracking service, with the baggage information collection function
available at 8 terminals.
Smart travel service
-- Extending "paperless" services and piloting "facial
recognition + self-boarding" at the Capital Airport, with a total
of 107 domestic terminals supporting QR code boarding pass
services;
-- Promoting self-service check-in and baggage check-in, with
the rate of fully self-service baggage check-in of 58%;
-- Electronic compensation fully covering the production
line;
-- Developing a hotel reservation system for transit passengers
with flight delay;
-- Completing the upgrade of the self-service collection of
excess baggage fees in fully self-service baggage check-in.
In-flight entertainment system
-- Revising systems for the media publishing, review, and
assessment processes and updating the content review standard for
in-flight entertainment programs from time to time;
-- Promoting the wireless LAN modification in passenger
cabins;
-- Increasing the types and number of programs for domestic
short-haul passengers according to the capacity of the route;
-- For in-flight videos, creating new special columns in Air
China's Winter Olympic-themed flights;
-- The average points of passenger satisfaction for in-flight
entertainment products reaching 78.5.
In-flight food service
-- Analyzing passengers' food habits with big data, launching
new series food, and improving the quality of in-flight food.
2.2.3 Services for special passengers
Adhering to "life first", Air China improved the quality of
services for special passengers and opened green channels for
special passengers and special events.
Update of management standards
Setting requirements for the transportation quantity and seating
arrangements of infants, children, the disabled, and injured and
sick passengers based on the production needs of the new model
ARJ21;
Modifying the applicable rates for children and unaccompanied
minors and revising the refund requirements for stretcher
passengers.
Improvement of special passenger experience
Replacing the "Letter of Exemption of Responsibility" with "Risk
Notification" to inform passengers of travel risks in the form of
risk warnings.
Online service booking
Launching the special passenger service module on Air China's
official website and APP; when taking domestic flights, passengers
can apply online for six special passenger travel services
including boarding wheelchairs and baby cradles.
Availability of in-flight wheelchairs
Promoting the availability of in-flight narrow-bodied wheels in
the entire fleet; the work was completed on all wide-body aircraft
in 2020 and will be completed on narrow-bodied aircraft in
2021.
2.3 Protecting Rights and Interests of Passengers
Protecting the rights and interests of passengers is the core
foundation for Air China to build the service quality brand. We
have given top priority to passenger privacy protection and
passenger feedback and established sound systems and mechanisms for
information security and passenger complaint feedback to
continuously improve overall satisfaction of passengers.
2.3.1 Passenger privacy protection
Against the background of the rapid development of information
technology, airlines are obliged to protect passengers' personal
privacy and information. To improve the Company's information
security protection system, Air China has formulated some internal
systems, such as the management measures for the access to
passenger information, in strict accordance with the Cybersecurity
Law of the People's Republic of China to regulate the use and
protection of passengers' personal information. In addition, in
response to the EU General Data Protection Regulations, Air China
took actions on data protection regulations and supplemented,
updated, and improved its Privacy Policy and Cookie Policy.
Air China has established a comprehensive organizational
structure for information security management and established the
Information Management Committee as the highest body for
information security management, which reviews data management and
is responsible for pre-decision-making on major issues concerning
data management of the Company.
Technical support
-- Air China's data storage system has obtained the
certification of the graded protection information system of the
People's Republic of China (Grade 3) and the ISO27001 and PCI DSS
certifications
-- Air China applied conventional encryption technology in
encrypting and storing users' personal information, and isolated it
with isolation technology to ensure data security
Administrative support
-- Revising the multilingual privacy terms and updating them on
all platforms in a timely manner
-- Categorizing employees with access to data according to
production requirements and strictly restricting access to
passenger information
-- Carrying out training on information security and privacy
protection for employees to enhance their information security
awareness
Protection of passenger privacy
In the service handling process, we partially mask user's
personal information to prevent accidental leakage.
In the transmission of passenger data, user information is
encrypted to ensure data security in the transmission process.
We have added the itinerary protection function to protect
passenger's itinerary message from malicious tampering.
Members can permanently cancel their account. After a member
permanently cancels the account, all of his or her personal
information will be deleted from the business system of Air
China.
2.3.2 Protecting rights and interests of passengers
Air China attaches great importance to customer experience and
integrated passenger feedback into management. We have established
a centralized and comprehensive mechanism for complaint handling to
understand passengers' needs in a timely manner and tracked
passenger satisfaction in real time and improved our services and
work based on these suggestions.
Complaints received from passengers: 6,287
Passenger satisfaction score: 83
Passenger satisfaction questionnaires collected: 44,618
Complaint handling rate: 100%
Overall satisfaction score of premium passengers: 82.1
3 Economy: Becoming the WORLD'S LEADING Enterprise
As a responsible corporate citizen, Air China adheres to the
concept of sustainable development, attaches importance to the
high-quality economic development of the Company, and emphasizes
common prosperity and progress with the industry. We actively
fulfill our responsibilities and give full play to our advantages,
striving to build a world-class aviation company.
3.1 Creating Economic Value Together
Air China insisted on implementing demands of the supply-side
reform and improved its resource allocation. We paid close
attention to industry trends and formulated practical development
strategies. We have built a stable hub network and forged
harmonious and efficient joint economic development to create
common value.
3.1.1 Reducing costs and increasing efficiency
In 2020, the COVID-19 pandemic brought an unprecedented impact
on the industry. Air China's passenger flight volume, capacity
input, passenger carried, daily aircraft utilization rate, and
operating income all fell sharply compared with the year before. In
the face of the severe situation, the Company strengthened
situation research and production organization, focused on
improving quality and efficiency, and took a variety of measures to
improve operation, stabilize profits, and prevent risks.
Air China promptly activated the emergency response mechanism
for performance, adopted a variety of unconventional measures in
production organization, marketing, and cost management, and made
every effort to increase revenue and reverse the decline in
efficiency.
Air China kept abreast of market changes, dynamically adjusted
the direction of capacity and capacity structure, and carefully
organized marketing and product investment to ensure maximized
total marginal contribution.
Air China took the lead in implementing the "preighter" business
model to create marginal contributions and share the fixed costs of
passenger aircraft, which contributed to the improvement of
passenger aircraft operations. The preighters undertaken throughout
the year were 13,120 flights.
Air China implemented the most stringent cost control and
scientifically matching costs and production paces. It also reset
the cost structure and system, carried out internal financing of
funds to ensure the security and stability of capital flow.
4 bases and sales centers, 50 domestic offices
4 regional headquarters, 85 international offices
3.1.2 Enhancing the construction of hub network
1. The Beijing Capital International Airport hub was being
renovated, with projects under progress as scheduled.
2. The "one airport and two terminals" operation of the Capital
Airport was under progress as scheduled.
3. The construction project of Air China Base at Daxing Airport
was promoted.
4. The construction of Air China Base at Chengdu New Airport was
completed.
5. Guangdong Branch was under preparation.
6. Xinjiang Branch was under preparation.
As at the end of the Reporting Period, the Company, Shenzhen
Airlines (including Kunming Airlines), Air Macau, Beijing Airlines,
Dalian Airlines and Air China Inner Mongolia operated a total of
674 passenger routes, including 48 international routes, 6 regional
routes and 620 domestic routes. In 2020, the Company's passenger
routes reached 28 countries and regions and 147 cities, including
26 international cities, 3 regions and 118 domestic cities. Through
cooperation with members of Star Alliance, the Company has further
expanded its service coverage to 1,300 destinations in 195
countries and regions.
3.2 Jointly Driving Industry Development
During its development, Air China attached great importance to
communication and exchange with industry peers. We joined hands
with suppliers and other partners to grow together by creating a
sustainable value chain and the new pattern of mutual benefit
cooperation.
3.2.1 Strengthening supply chain management
Air China believes that good and stable partnerships are the
cornerstone of a company's long-term development. In the process of
achieving high-quality development, Air China has strengthened its
supply chain management. We formulated the Management Regulations
of Air China for Suppliers and carried out supplier management for
the whole process, covering supplier Admission, performance
appraisal, rating and information database construction. We were
also transforming to responsible procurement and actively building
a sustainable supply chain.
Admission
-- To ensure the sourcing principles of openness, fairness,
impartiality, and honesty, in supplier Admission, suppliers were
required to truthfully fill in the "Information Registration Form
for Supplier" and "Self-examination Questionnaire for Qualification
Compliance" and submit corresponding qualification
certificates.
-- A qualification compliance review group was established,
responsible for the review of the compliance of qualification for
potential suppliers, focusing on eight main dimensions such as the
truthfulness and validity of supplier information, suppliers'
industry qualifications and operating conditions.
Performance appraisal
-- Taking "quality, safety, customer satisfaction, costs,
security of supply and innovation" as the core dimensions, the
Company adopted an appraisal standard covering daily performance
and annual performance, and fully applied the results of daily and
annual performance appraisals of suppliers into its sourcing
operation to implement closed-loop management.
-- The Company held meetings with suppliers based on the results
of daily performance appraisal and reviewed them regularly to urge
them to formulate improvement measures for rectification. The
Company has also established an archive for suppliers' daily
performance.
Rating management
-- The Company adopted rating management of suppliers. According
to the results of the annual performance appraisal, suppliers were
divided into four levels: A, B, C and unqualified.
-- The Company actively established long-term partnerships with
A-level suppliers, urged B-level suppliers to carry out
rectification, supervised the rectification and improvement of
C-level suppliers, and eliminated unqualified suppliers from
cooperation.
-- The Company established a supplier database and regularly
updated it for real-time standardized management of suppliers.
Air China integrated the concept of environmental, social, and
corporate governance (ESG) into its supply chain management,
formulated the Code of Conduct for Suppliers, and practiced
responsible procurement. A supplier's ESG risk and performance were
covered by the review. Suppliers were required to fill in the
"Questionnaire on Suppliers' Compliance with Proper Social Code of
Conduct Based on Suppliers' Self-Examination" Their operations must
meet the standards of health and safety, environment, and labor
rights. The sub-tier suppliers need to agree with the Code of
Conduct for Suppliers that included the above indicators. In
addition, Air China required suppliers to provide certifications
according to national statutory environmental protection
requirements and relevant qualification certifications such as the
ISO to ensure that suppliers met ESG standards in various aspects
and performed responsible sourcing from the root.
Number of Suppliers in the Management Scope of Sourcing
Business
Domestic 3,786
Overseas 152
Number of Suppliers for Aircraft Sourcing
Domestic 8
Overseas 17
Newly-admitted Suppliers
739
3.2.2 On-going external cooperation
As a world-class airline, Air China integrated the concept of
sustainability into the development of the industry, joined hands
with outstanding peers to build a good industry ecosystem, and
actively promoted exchanges and cooperation with alliance
partners.
Air China and Sinopec reaching cooperation intentions for the
2022 Winter Olympics
On November 20, Air China and Sinopec Group reached a
cooperation intention at a themed event of Beijing 2022 Partner
Club. With the common goal of serving and supporting the Winter
Olympics, the two parties will carry out exchanges and cooperation
in support, joint marketing, public welfare activities, protection
of rights, and corporate culture, etc.
Air China at CITM 2020
From November 16 to 18, Air China participated in the China
International Tourism Mart (CITM) held in Shanghai. Against the
backdrop of effective control of the pandemic and the recovery of
the domestic economy, the Company took this exhibition as an
opportunity, where it showed a variety of whole-process aviation
travel services and products based on the measures introduced
during the pandemic, enhancing passengers' confidence in
travel.
Exchanges with peer companies and suppliers
In 2020, Air China visited China Mobile, State Grid and other
companies for exchanges on the benchmarking for supply chain
construction. In the exchanges, the companies discussed
construction scenes of the future smart supply chain, including the
top-level design of supply chain systems, construction and
innovation, intelligent procurement, digital logistics, and
panoramic quality control. Based on the benchmarking, Air China has
formed a development plan with the goal of creating a modern smart
supply chain, focusing on supply chain management and digital
transformation. This plan will be realized by promoting the
transformation of sourcing from bidding to supply chain management,
from transaction to construction of a strategic ecosystem, from
centralized control to value enhancement, and from process
management driven to intelligent management driven.
3.2.3 Promoting Alliance-based Anti-pandemic Cooperation
Air China actively engaged in the setting of international
standards to enhance the Company's international voice.
Air China formed a special working group for international
cooperation in pandemic prevention and control, established and
improved working procedures and working mechanisms, and actively
carried out international cooperation in pandemic prevention and
control.
Air China actively participated in meetings at different levels
monthly exchanges on pandemic prevention of the Star Alliance,
where presented China's anti-pandemic progress, pandemic prevention
measures, and regulatory policies of the Chinese government.
Air China engaged in the concept discussion and feasibility
evaluation of the health travel permit and advocated flexible
strategies to lead the members to actively respond to the pandemic
in the Star Alliance.
Air China supported the establishment and improvement of the
Star Alliance Travel Information Center and provided transfer
passengers with information on the pandemic prevention measures of
the members and major hub airports.
Air China joined the newly established Biosafety Working Group
of the Star Alliance, and responded to the Star Alliance's call and
voiced together with other members to make six commitments to
protect the health and safety of passengers during travel.
4 Environment: Building a Beautiful Home Together
Air China follows Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era and upholds the development
philosophy of "Green Operation, Sustainable Development". With the
green, low-carbon, circular, and sustainable development approach,
Air China achieved low-carbon growth by reducing unit energy
consumption, promoted green upgrades by optimizing energy use
structure, met the environmental protection standards by
implementing system management and control, and performed the
responsibility of central enterprises by promoting public welfare
undertakings of environmental protection.
Supporting the UN 2030 Sustainable Development Goals
4.1 Improving Management Systems
Air China thoroughly practiced Xi Jinping Thoughts on Ecological
Civilization and the essence of the 19th National Congress of the
Communist Party of China and earnestly implemented the decisions
and arrangements of the CPC Central Committee and the State Council
and the requirements of the National Conference on Ecological
Environment Protection. We have established a company-level leading
group on ecological and environmental protection to promote energy
conservation and environmental protection. We have also established
a work priority briefing mechanism to regularly track the progress
of the work, and formed a closed-loop management system for energy
conservation and environmental protection that covers all units and
reaching all levels.
Air China established a coordination working group for green
development of the Company, introduced the Implementation Rules for
the Management of Special Funds for Energy Conservation and
Eco-environmental Protection and Implementation Rules for the
Supervision over Energy Conservation, Emission Reduction, and
Eco-environmental Protection. We carried out internal supervision
over energy conservation and environmental protection in the
Company, organized exchanges and study, and insisted on daily
office energy saving. In 2020, Air China's Beijing and Southwest
Branches obtained the certification of energy management system. In
the same year, Air China was recognized as the exemplary team in
the civil aviation industry in winning the Blue Sky Protection
Campaign.
4.2 Insisting on Low-carbon Operation
4.2.1 Low-carbon operation
Climate change has brought severe challenges to Air China. The
Company actively responded to the central government's call for
energy conservation and emission reduction and practiced green
development and the low-carbon strategy to help the country
achieving its goals of peaking carbon dioxide emissions and
achieving carbon neutrality.
4.2.1.1 Energy conservation and emission reduction of
aircraft
Air China took the energy conservation and emission reduction of
aircraft as a core task for reducing carbon emissions. By
controlling carbon emissions in three key processes, namely,
aircraft introduction and retirement, navigation, and landing, the
efficiency of aircraft fuel usage was improved and greenhouse gas
emissions were reduced. In 2020, under the impact of the COVID-19
pandemic, The company actively took the operation mode of
"preighter". We made full use of the bellyholds of passenger
planes, transformed the cabins of wide-body aircraft, and undertook
cargo flights with passenger planes to increase the utilization
rate of wide-body aircraft and improve fuel efficiency.
Fuel consumption per ton-km (kg/ton-km)
2020: 0.356
2019: 0.296
2018: 0.274
Carbon dioxide emission per ton-km (g/ton-km)
2020: 1,121.2
2019: 931.5
2018: 873.4
Carbon dioxide emission (10,000 tons)
2020: 1,504.4
2019: 2,324.8
2018: 2,354.3
Air China's carbon dioxide emissions in 2020: 15.04 million
tons
Scope 1 CO(2) emissions: 14.85 million tons
Scope 2 CO(2) emissions: 0.19 million tons
By the end of 2020
6 old aircraft retired
Current fleet size: 707 aircraft
14 new aircraft introduced
Fuel consumption per ton-km: 0.36 kg/ton-km
Average aircraft age: 7.74 years
Aircraft introduction
High-performance models were selected to build a young and
technologically advanced fleet and promote the fuel efficiency of
the fleet from the source.
Aircraft operation
To save fuel consumption and reduce greenhouse gas emissions, a
number of measures were taken, including controlling return and
landing, deepening secondary release, computer-aided fuel
management, aircraft weight reduction, aircraft performance
monitoring, pre-allocation accuracy, and optimization of domestic
and international air routes.
In 2020, Air China saved 6,514 tons of fuel
reduced 21,000 tons of carbon dioxide
Aircraft parking
Air China was committed to promoting the use of ground power to
replace the auxiliary power unit (APU) of the aircraft, using
electricity to replace jet fuel consumption before, during, and
after the flight.
In 2020, the APU alternate devices were used for 297,000
times
for 534,000 hours
saving 81,000 tons of fuel
reducing 256,000 tons of carbon dioxide emissions
The Aircraft-ground Crossfeed Fuel System
The Aircraft Crossfeed-ground Fuel System (ACFS) is mainly about
the use of the aircraft's own fuel pump power to achieve safe,
clean, and efficient fuel transmission between the ground and the
aircraft, so as to shorten the pumping time and save fuel.
The ACFS obtained three patents in 2020. On July 30, 2020, the
system passed the expert appraisal organized by the Civil Aviation
Maintenance Association of China. According to the experts, "the
research and development of the ACFS with autonomous cleaning
function fill the gap in civil aviation and achieve the purposes of
reducing fuel waste, shortening fuel transmission time, and
reducing airline operating costs. The system has significant
economic and social benefits, which is innovative in environmental
protection and well worth being spread for application.
4.2.1.2 Strengthening the management of carbon assets
By managing the Company's emission allowances, emission
reduction credits, and related activities, Air China regularly
monitored its carbon emissions, formulated carbon emission
reduction mechanisms, strengthened capacity building in response to
global aviation emission reduction mechanisms, and planed carbon
asset management in a scientific and reasonable manner.
Carbon asset management
Improving centralized management of carbon assets
Air China revised and improved its regulations on carbon
emission management, regulated the carbon emission trading
business, and effectively controlled and prevented carbon trading
risks.
Constructing the carbon emission data monitoring and analysis
system
Air China officially launched a carbon emission monitoring and
analysis system to monitor and analyze carbon emission data. In
this way, it realized automated data collection and review, met
multiple sets of carbon trading requirements at home and abroad,
and effectively improved its management and control of aviation
carbon emission data.
Engaging in the work of several carbon emission systems
Air China completed the work of monitoring, verification,
reporting, and agreement performing of carbon emission for the
country, the EU, and the civil aviation industry. We also kept
following carbon market information and regularly released carbon
market briefings to provide decision-making support for corporate
carbon asset management.
Engaging in the international research on carbon emission
reduction and environmental governance
Air China was appointed by the Civil Aviation Administration of
China to join the WG4 of the International Civil Aviation
Organization for the discussion of the revision of the carbon
emission MRV (Monitoring/Reporting/Verification) system
documents.
Air China launching a passenger carbon emission calculator
The Air China Passenger Carbon Emission Calculator was launched
on the Air China APP, WeChat Mini Program, and Air China's official
website in December 2020. Relying on Air China's big data of
flights, it calculates the carbon footprint of passengers during
their journey, such as origin, destination, cabin, number of
people, and one-way/round-trip, to help passengers understand their
carbon emissions during the flight. By December 31, nearly 4,000
passengers inquired about carbon emissions data through this online
calculator.
4.3 Strengthening Pollution Prevention
According to the report of the 19th National Congress of the
Communist Party of China, pollution prevention was one of the three
important subjects in building a moderately prosperous society in
all respects. Air China insisted on green development, implemented
the basic state policy of environmental protection, and actively
assumed the social responsibility of green development, determined
to win the Blue Sky Protection Battle.
The emissions of Air China mainly include air emissions and
ground emissions. Air emissions mainly refer to the carbon dioxide
generated from aviation fuel consumption whereas ground emissions
include wastewater, waste gases, hazardous and non-hazardous wastes
generated during ground operations. Air China has proactively
managed, identified, and prevented pollutants generated during
operations in order to conduct compliant waste treatment and reduce
environmental impacts.
4.3.1 Air pollution control
Optimizing the energy consumption structure of vehicles in the
airport
By expediting the special work of "Application of New Energy
Vehicles" for ground support vehicles, the company has expanded the
scale of new energy vehicles in an orderly manner. As of December
31, 2020, Air China had 653 new energy vehicles.
Supporting NEV's need for charging
Air China built 195 charging piles in the operating areas at
major airports, creating an efficient charging infrastructure
operation network.
Ensuring vehicle exhaust emissions to meet standards
Air China attached importance to the exhaust emissions of diesel
vehicles on site. It installed diesel particulate filters (DPF, an
exhaust gas treatment device) in 1,431 diesel vehicles in major
airports following the principle of "modifying all that can be
modified", and established an exhaust gas self-inspection team to
ensure that diesel vehicle exhaust emissions meet standards in the
long run.
4.3.2 Pollution control in aircraft maintenance
4.3.2.1 Industrial wastewater
-- All the industrial wastewater generated during Air China's
aircraft maintenance was diverged or collected into the wastewater
treatment station and treated and discharged meeting relevant
standards. On-line monitoring was installed at the main outlet. Air
China regularly commissioned qualified third-party testing agencies
for wastewater testing, and the testing results met national and
local emission standards. In 2020, 50.3 tons of industrial
wastewater was treated and discharged meeting the standard.
4.3.2.2 Industrial exhaust
-- Air China installed exhaust gas treatment facilities. Every
quarter, it commissioned a qualified third-party inspection agency
for inspections, and the results met national and local emission
standards. The exhaust gas treatment facilities were renovated and
activated carbon filter devices were installed, which reduced the
annual VOCs emissions by 3.3 tons.
4.3.2.3 Hazardous waste
-- For the hazardous waste generated in the process of
maintenance, Air China classified and collected it in accordance
with the National Hazardous Waste Inventory, and handed it to
qualified companies for disposal. In 2020, a total of 799.9 tons of
hazardous waste was disposed.
Disposed hazardous waste from aircraft maintenance (ton)
Waste containers and contaminants: 300.3
Waste oil: 213.2
Waste cleaning fluid: 121.7
Waste paint and paint bleaching liquid/slag: 55.5
Waste activated carbon: 41.4
Wastewater treatment sludge: 38.6
Spent acid: 21.6
Spent alkali: 5.4
Waste mercury-containing fluorescent tubes: 0.9
Waste reagents and detection solution: 0.6
Used battery: 0.4
Spent developer: 0.3
4.4 Promoting Environmental Protection
Air China actively promoted environmental protection,
communicated concepts of environmental protection to the public,
and supported building an environmentally friendly society.
"Clear Your Plate" Campaign
In 2020, Air China saved nearly 700,000 meals (3% of food) by
controlling the differentiation in catering.
August 1
On August 1, promoting food saving through online and offline
channels: On WeChat public platform and other channels, Air China
issued a proposal of "Avoiding Food Waste and Raising the Awareness
of Conservation" to all employees and widely publicized and
promoted the saving experience of all units of the Company.
Publicity posters of "avoid food waste" were put up in conspicuous
positions in the staff canteen, and the "Avoid Food Waste"
promotional video was played on the TV screen in a loop to increase
the awareness of food saving among all employees.
September 27
On September 27, optimizing the catering of economy class: Air
China strengthened the research on refined meal catering, and
adjusted the number of meal offers on some flights on the premise
of meeting the meal needs of passengers, so that the number of meal
offers was more reasonable.
Air China's "Energy Conservation Promotion Week" campaign
June 1
On June 1, all employees participated in the online quiz on
energy conservation and environmental protection. Air China
promoted and practiced the resource concept of saving, intensive
use, and recycling, improved resource utilization, and promoted
publicity and education on energy conservation and low carbon among
all employees, making energy conservation and environmental
protection an issue of "concern, engagement, and supervision".
August 1
On August 1, Air China put up posters and slogans on energy
conservation and emission reduction in conspicuous locations,
including display screens in hotel and property lobbies and
bulletin boards to raise the awareness of resource concerns and
conservation awareness among employees.
August 15
Since August 15, Air China provided green products and services,
actively introduced green products in hotels and pilot apartments,
and guided guests to green consumption.
September 27
On September 27, Air China carried out a general inspection of
energy-consuming facilities, requiring all affiliates to
self-inspect the energy conservation of their equipment and
facilities and rectify problems immediately. Air China also issued
targeted management measures for high-energy-consuming
facilities.
5 Society: Building a Better Life Together
Air China continues to care for the lives of employees,
participates in community building, practices public welfare with
its original aspiration, and contributes to building a better
society and a better life for people.
5.1 Being Committed to Employee Development
Employees are the most important asset of Air China. The Company
is committed to creating a good working environment for employees,
attaching importance to their rights, and providing them with
high-quality training and smooth development channels.
5.1.1 Protecting employees' 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. In recruitment, the Company is against discrimination
and advocates fair and non-discriminatory employment policies. We
undertake that there shall be no discrimination on gender,
ethnicity, nationality, body condition, religion, political stance,
marital status or any other factors, insist on the principle of
same pay for the same job, and avoid child labor and forced
labor.
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 of Air China will expire in
2021. At the end of 2020, the Company initiated the drafting of a
new version of the three collective contracts and solicited
opinions and suggestions on the draft collective contracts from
employee representatives. In 2020, 100% of Air China employees
signed the labor contract.
Total number of employees: 46,819
Proportion of female employees: 50.8%
Master's degree and above: 5.8%
Bachelor's degree: 60.8%
Three-year college education: 30.0%
Secondary Vocational School education and below: 3.4%
35 years old and below: 65.2%
36 - 45 years old: 20.7%
46 - 60 years old: 14.1%
5.1.2 Democratic management
Air China improves the democratic management of employees,
listens to its employees at employee representatives' general
meetings, and safeguards their legitimate rights and interests. In
2020, Air China completed the re-election of the employee
representatives' general meeting and labor union, further enhancing
employee participation and representativeness.
Proposals submitted by employee representatives: 35
General opinion proposals: 19
Proposals for filing: 16
Percentage of employees joining the labor union: 95.61%
Air China was awarded the honorary title of National Exemplary
Unit of Democratic Management on Making Public the Affairs of the
Enterprise.
5.1.3 Employee ability improvement
5.1.3.1 Development of the training system
Air China has established a sound training system and provided
different training courses for employees in different positions in
accordance with their aptitudes and needs.
According to laws and regulations on civil aviation
Establishing training systems for pilots, flight attendants,
aviation safety officers, and flight dispatchers
According to the Company's production demand
Establishing training systems for air transport personnel,
overseas personnel, and commercial personnel
According to the qualification requirements of civil aviation
transportation
Establishing training systems for dangerous goods transportation
and aviation security
5.1.3.2 Development of the training system
Air China formulated the Training Management Manual, issued the
Management Regulations on New Employee Training, and other training
regulations, and revised the Training Outline for Air Transport
(Stowage Personnel), and produced relevant courses and management
and operating tools for training, to make a reasonable and fully
operable employee training system.
5.1.3.3 Improving vocational training
Leadership training for middle and senior managers
Off-job trainees: 345
Off-job training hours: 14,778
Online trainees: 1,411
Online training hours: 98,022
Leadership promotion training
In October 2020, the 17th Air China Leadership Promotion
Training Program for General Managers was held in Beijing, which
lasted for one week. Through this program, the comprehensive
quality of the Company's management team was significantly
improved, and team cohesion was also strengthened.
State-owned Enterprise Management training for senior
managers
In November 2020, the 48th Air China State-owned Enterprise
Management Training Program for Senior Managers was held in China
Business Executives Academy, Dalian, which lasted for two weeks.
Through a variety of courses with rich content, the Company's
management team improved management capabilities and personal
overall outlook.
Building innovative studios of model workers and craftsmen
In 2020, Air China actively built innovative studios of model
workers and craftsmen to promote the development of the industrial
worker team in the new era and build a sharing platform for model
workers and craftsmen. Among them, Duan Huangke Innovation Studio,
Zhixing Innovation Studio, and Accessory Maintenance Technology
Innovation Studio of Ameco Beijing Base were recognized as the
National Civil Aviation Model Worker (Highly Skilled) Innovation
Studio by Civil Aviation Administration of China.
Ni Zejun, a national model worker
Ni Zejun, a senior engineer at Ameco, was awarded the honorary
title of National Model Worker.
Team building well underway
In 2020, Air China carried out annual team building evaluation
and demonstration team assessment, summarized and presented
innovative practices in team building, and selected benchmark teams
to play a leading role in demonstration.
Besides, the Company carried out team building activities on
safety and earnestly implemented the work requirements of civil
aviation to strengthen primary organization, foundation work, and
basic skills, and practice the respect for life, regulations, and
responsibility. The activities were carried out with focuses on the
formulation of safety behavior standards, the development of safety
habits of teams and groups, and safety education. The results of
the activities were showed in vlogs. This measure promoted the
implementation of the new CCAR-121-R5 regulation and built the
teams into a strong fortress to guard the bottom line of
safety.
5.1.4 Performance incentives
Air China is committed to providing employees with competitive
salaries and incentives to encourage more employees to make
achievements. Adhering to the concept of "paying for position
value, personal ability, and performance" and focusing on enhancing
vitality and improving efficiency, the Company continuously has
improved the linkage mechanism of salary distribution and
efficiency, implemented differentiated management of total salary
budget. During the reporting period, the Company continued to
deepen the reform of the salary and benefit system. It improved the
market-based salary benchmarking system and established a sound
salary determination and increase mechanism that scientifically
reflects the level of the labor market. It also implemented
differentiated salary adjustments to increase incentives for
employees with constant outstanding performance. The Company has
formulated several documents for the performance management system
to improve performance evaluation and human resource
management.
5.1.4.1 Improving the performance appraisal system
01 Adjusting the method for performance appraisal and assessing
production and cost-benefit to enhance the pertinence of
performance appraisal
02 Adjusting the payment standard for monthly merit pay in a
timely manner based on external factors such as the pandemic
03 Guiding subsidiaries for proper performance appraisal during
the pandemic and clarifying the key points of performance appraisal
during the pandemic
5.1.5 Employees' health and safety
Air China manages the health and safety of its employees in
accordance with the Law of the People's Republic of China on the
Prevention and Control of Occupational Diseases and relevant laws
and regulations. The Company established and perfected the
occupational health management system and the employee health
management mechanism, prepared the Manual of Occupational Health
and Safety Management and organized the comprehensive publicity and
training. In August 2020, the Company established a service office
for occupational health and safety and participated in the training
on occupational health management for central enterprises held by
the National Health Commission. In December, the Company held an
occupational health management training session. Managers from 20
subsidiaries in Beijing participated in the training. Air China
also attaches great importance to the mental health of its
employees and has promoted the Employee Assistance Program (EAP)
for all employees.
Employees' calls answered on the EAP service hotline: 3,025
Thematic training sessions: 166
Training sessions for new employees: 34
Group counselling sessions: 150
Mental health counseling sessions for pilots and attendants in
quarantine: 7
Proactive psychological intervention cases: 25
Air China built service stations for outdoor workers at
terminals and employees in positions of 24-hour change.
Air China supported the House of Workers program of Beijing
Municipal Federation of Trade Unions and built 11 service stations
on the production line.
5.1.6 Care for employees
Air China has built an employee service center and a shared
service platform to listen to employees' demands and help them
solve problems.
Air China comprehensively optimized its offline and online
business processes to improve the overall operating efficiency of
the employee service center.
Air China has launched intelligent service to provide employees
with real-time mobile online inquiry services on the WeChat
official account of the employee service center, realizing online
business consulting.
High Education for Civil Aviation Workers
High Education for Civil Aviation Workers was a student
assistance program for civil aviation workers initiated by the
Civil Aviation Administration of China and the Open University of
China. It provided civil aviation workers with online and
on-the-job education of Bachelor's degree and three-year college
education through around-the-clock mobile instruction services.
Under this program, model workers, employees in difficulties
received corresponding subsidies, and students with excellent
academic performance received scholarships.
The enrollment in the fall of 2020 and the granting of
scholarships for Classes 2018 and 2019 of High Education for Civil
Aviation Workers were completed.
In the academic year of 2020, a total of 220 people from Air
China applied for the program and 769 people received
scholarships.
5.1.7 Cultural activities for employees
To help employees balancing lives and work, the Company
organized a number of cultural and sports activities, enhancing
communication and strengthening cohesion within the team.
5.1.8 Caring for employees' lives
Air China allocated assistance and comfort funds to employees in
need through the labor union to help them overcome difficulties.
During the pandemic, Air China sent comfort supplies and funds to
the Company's frontline workers, key units of pandemic prevention
and control, and employees in arduous areas through on-site and
online activities, and provided temporary assistance to employees
in need. On festivals, the labor union purchased presents and sent
them to employees to give them holiday care.
The "Civil Aviation Workers on New Year's Eve" photography
activity
Air China organized its employees to participate in the "Civil
Aviation Workers on New Year's Eve" photography activity held by
the Civil Aviation Administration of China to capture the moments
when the front-line workers performed their duties and provided
sincere service.
The Fourth Ping Pong Competition of the civil aviation industry
in China
Oriented by employees' needs, Air China constantly innovated
cultural and sports activities for employees and created a variety
of online-offline-integrated activities with full participation and
coverage.
01 Granting the Air China female employees' allowance of RMB1.14
million to 57 female employees
02 Granting the Air China employees' allowance of RMB2.12
million to 106 employees
03 Granting RMB643,200 to employees in need in the Spring
Festival
04 Granting RMB227,000 to employees in need during the
pandemic
On 31 December, Chairman Mr. Song Zhiyong, welcomed the last
flight crew at Beijing Capital International Airport, celebrating
Air China ' s achievement of a safe flight year of 2020.
5.2 Sincerely Giving Back to the Society
Air China has always been committed to building a beautiful
community. We have exerted advantages to support special flight
missions. At the same time, based on the community development, we
give assistance to the disadvantaged groups and share resources
with the communities, thereby making contributions to the
harmonious development of local communities.
5.2.1 Community involvement
Air China actively fulfills responsibilities as a social citizen
and devotes to create a social environment featuring harmony,
beauty and friendliness.
Visiting a veteran
On September 2, Mr. Feng Gang, Director and Deputy Secretary of
the Party Committee, visited a veteran named Li Shufan, a veteran,
and offered best wishes to him.
The Buttonwood team's public welfare activity
The Buttonwood team of the Cabin Services Department of the
Southwest Branch donated school bags, stationery boxes, and
textbooks to a primary school in Yushu Tibetan Autonomous
Prefecture, Qinghai Province.
Transport support mission for disabled athletes
On November 18, under the relay of several work teams of
Zhejiang Branch, 39 athletes, coaches, and staff from the National
Paralympic Swimming Team (Zhejiang Team) and Zhejiang Paralympic
Swimming Team, who were preparing for the Tokyo Paralympic Games
and the 11th National Paralympic Games, successfully took flight
CA1753 from Hangzhou to Kunming for training.
"Thanks for Air China's support for our travel", said the
National Paralympic Swimming Team (Zhejiang Team) and Zhejiang
Paralympic Swimming Team.
A special event of the Beijing 2022 Promotion Team at Air
China
On September 25, a special event of the Beijing 2022 Promotion
Team at Air China, which was one of the serial publicity activities
for the 500-day countdown to the 2022 Winter Olympics, was held at
the Air China Headquarters Building. Seven people from different
industries shared their Olympic stories from different
perspectives. Nearly 200 people participated in the event. 1051
people watched the live broadcast on the "Youth Air China" account
on Tik Tok.
5.2.2 Volunteer service
Adhering to the volunteer service concept of "dedication,
friendship, mutual assistance, and progress", Air China encourages
employees to participate in volunteer service and social welfare
activities and share a harmonious community.
In 2020, volunteers of Air China actively participated in the
Blue Sky Classroom volunteer teaching program for poverty
alleviation. Seven long-term volunteers taught in Zhaoping,
Guangxi, with a total of 966 class hours of various teaching
activities throughout the year. The cooperation between volunteers
and local schools significantly improved the students' academic
performance and lifted the average score of English at the primary
school to the best in the county.
Blue Sky Classroom
Blue Sky Classroom is a benchmark program for the Company to
give back to the society in volunteering. In this program,
volunteers meticulously prepared courses on traditional culture,
ethics, art, and English for students, which served as a powerful
supplement to school teaching and assisted in upgrading local
education. According to the needs of local schools, Air China
provided special training for 310 teachers from 91 primary and
middle schools in Zhaoping.
Voluntary services for pandemic prevention and control
Air China organized young volunteer service teams to fight on
the front line for pandemic prevent and control. Volunteers from
the Ground Services Department took the terminal as a position for
volunteer services, where they patiently answered passengers'
questions and actively helped them resolving their
difficulties.
Young volunteer service teams organized during the pandemic:
544
Young volunteers for pandemic prevention and control: 3,309
Honors for the volunteers
CNAHC Volunteers' Association won the Best Volunteer Service
Organization in Beijing in 2020.
The CNAHC Blue Sky Classroom volunteer teaching program was
named the Best Volunteer Service Project in Beijing.
Four volunteer service programs and four outstanding results in
the collective anti-pandemic volunteering were showcased at the
"Youth Volunteer Action" demonstration and exchange event carried
out by the Communist Youth League National Civil Aviation
Committee.
Outlook for 2021
The year 2021 will mark the launch of the 14th Five-Year Plan.
It is a critical year for China to consolidate development results,
and further demonstrate its institutional advantages after taking
the lead in achieving positive growth in the world's major
economies in 2020. Air China will adhere to the general work
guideline of making progress while maintaining stability and
earnestly implement the tasks of ensuring stability in employment,
financial operations, foreign trade, foreign investment, domestic
investment, and expectations and security in job, basic living
needs, operations of market entities, food and energy security,
stable industrial and supply chains, and the normal functioning of
primary-level governments. We will continue to improve the quality
of development, consolidate the results of pandemic prevention and
control, and make overall plans for safety and development. We will
work hard for the rebound of operating efficiency and celebrate the
100th anniversary of the founding of the CPC with outstanding
results.
Continuing to promote the high-quality development of Party
building. Air China will insist on advancing work under the
guidance of Xi Jinping Thought on Socialism with Chinese
Characteristics in the New Era, continue to improve the systems and
mechanisms of upholding Party leadership, and further strengthen
the ideological, political, and action awareness of "two upholds
(resolutely upholding General Secretary Xi Jinping's core position
on the Party Central Committee and in the Party as a whole, and
resolutely upholding the Party Central Committee's authority and
its centralized, unified leadership)".
Consistently carrying out pandemic prevention and control. Air
China will persist in the combination of regular and precise
prevention and control with local emergency response, develop and
improve the response plans for special situations, and continue to
strengthen defense against inbound cases. We will implement the
protection of professional teams in strict accordance with high
standards, continue to secure pandemic prevention supplies, and
carry out in-depth inspection and supervision of pandemic
prevention. We will also strengthen education and guidance to raise
employees' awareness of personal protection.
Taking effective measures for work safety. Safety is the
lifeline of airlines and the prerequisite for the company's reform
and development. We must firmly ensure safety, strictly implement
the work safety accountability system, practically implement the
key tasks in the three-year action for special rectification of
work safety, enhance safety awareness, improve technical
capabilities, and lay a solid foundation for safety.
Striving for the rebound of operating efficiency. Air China will
pay close attention to changes in the operating environment,
conduct in-depth market research and judgment, and seize market
opportunities. We will strengthen the production organization and
coordinate the domestic and international markets, passenger and
cargo business.
Continuing to improve the quality of products and services. Air
China will continue to strictly prevent and control the pandemic in
its services, sufficiently inform passengers, optimize service
procedures, and respond to passengers' needs for health protection
and contactless services in a timely manner to ensure their health
and safety.
Resolutely promoting the deepening reform. Air China will fully
implement the three-year action plan for group reform, continue to
improve the corporate governance system, and promote the
modernization of the management system and management capabilities.
We will advance the Group's industrial layout and structural
adjustments and deepen the integration of main businesses.
Table of Major Indicators
Indicators 2018 2019 2020
Total assets (RMB100 million) 2,437.16 2,942.54 2,840.71
---------- ---------- ----------
Total actual tax paid during
this year (RMB100 million) 88.85 64.17 29.05
---------- ---------- ----------
Number of registered aircraft
(unit) 669 699 707
---------- ---------- ----------
Average aircraft age (years) 6.62 6.96 7.74
---------- ---------- ----------
Total profit (RMB100 million) 99.58 91.05 -184.75
---------- ---------- ----------
Safe flight hours (10,000 hours) 224.52 228.5 155.3
---------- ---------- ----------
RTK (100 million tonnes kilometres) 275.18 253.64 132.85
---------- ---------- ----------
Passenger carried (100 million
persons) 1.10 1.15 0.69
---------- ---------- ----------
Cargo and mail carried (10,000
tonnes) 190.84 143.42 111.37
---------- ---------- ----------
Social contribution per share
(RMB) 2.97 3.01 0.93
---------- ---------- ----------
Purchases from the five largest
suppliers (RMB100 million) 412.36 361.32 177.05
---------- ---------- ----------
Intellectual property rights
registered (pieces) 3,006 3,080 3,085
---------- ---------- ----------
Passengers' overall satisfaction
(points) 90.6 81.4 83
---------- ---------- ----------
Premium passengers' overall
satisfaction (points) 89.5 82 82.1
---------- ---------- ----------
Number of complaints received
from passengers for the whole
year (cases) 13,450 12,373 6,287
---------- ---------- ----------
Passenger complaint handling
rate (%) 100 100 100
---------- ---------- ----------
Flight on-time performance (%) 80.36 81.83 89.15
---------- ---------- ----------
Flight execution rate (%) 98.4 98.19 98.9
---------- ---------- ----------
Total energy consumption (10,000
tonnes standard coal) 1,094.2 1,078.8 696.7
---------- ---------- ----------
Aviation fuel consumption (10,000
tonnes) 738.5 728.9 469.3
---------- ---------- ----------
Power consumption (MWh) 167,299.6 195,539.2 184,219.9
---------- ---------- ----------
Gasoline consumption (tonnes) 2,595.8 2,709.9 2,367.5
---------- ---------- ----------
Diesel consumption (tonnes) 9,363.2 7,693.0 5,972.1
---------- ---------- ----------
Natural gas consumption (10,000
m(3)) 1,783.5 1,579.2 1,355.4
---------- ---------- ----------
Thermal Power (MKJ) 378,491.0 244,341.1 258,610.4
---------- ---------- ----------
Other energy consumption (tonnes
standard coal) 24.5 4.8 1.5
---------- ---------- ----------
Fuel consumption per ton-km
(kg/ton-km) 0.274 0.296 0.356
---------- ---------- ----------
Carbon dioxide per ton-km (g/ton-km) 873.4 931.5 1,121.2
---------- ---------- ----------
CO(2) emissions (10,000 tonnes) 2,354.3 2,324.8 1,504.4
---------- ---------- ----------
Total hazardous waste emissions
(tonnes) 632.0 785.2 799.9
---------- ---------- ----------
Water consumption (10,000 tonnes) 512.1 492.4 439.9
---------- ---------- ----------
Environmental protection investment
(RMB10,000) 21,931.1 26,984.5 20,475.6
---------- ---------- ----------
Number of employees on the post
(persons) 28,302 46,862 46,819
---------- ---------- ----------
Number of foreign and Hong Kong,
Macau, and Taiwan employees
(persons) 983 1,247 1,022
---------- ---------- ----------
Number of minority employees
(persons) 1,419 1,972 1,845
---------- ---------- ----------
Number of disabled employees
(persons) 15.5 17 16
---------- ---------- ----------
Female employee percentage (%) 43.56 50.9 50.8
---------- ---------- ----------
Total number of management staff
and management supporting employees
(persons) 6,721 6,871 6,770
---------- ---------- ----------
Labour contract signing rate
(%) 100 100 100
---------- ---------- ----------
Ratio of employee Aged 35 and
turnover (%) below 5.25 4.57 1.52
----------------- ---------- ---------- ----------
Aged 36-45 0.84 2.0 0.09
------------------------------------------- ---------- ---------- ----------
Aged 46-60 7.87 0.39 0.01
------------------------------------------- ---------- ---------- ----------
Male 2.69 2.33 0.44
------------------------------------------- ---------- ---------- ----------
Female 4.07 4.56 1.18
------------------------------------------- ---------- ---------- ----------
Domestic 3.29 3.51 1.62
------------------------------------------- ---------- ---------- ----------
Overseas 3.42 2.16 0.004
------------------------------------------- ---------- ---------- ----------
Proportion of employees guaranteed
by collective bargaining agreements
(%) 100 100 100
---------- ---------- ----------
Total hours of employee training
for maintaining specific qualification
(hours) 207,551 210,701 862,487*
---------- ---------- ----------
Number of employees trained
for maintaining specific qualification
(persons) 119,707 110,206 106,897
---------- ---------- ----------
Total employee education expenses
(RMB10,000) 2,219 1,787 1,122
---------- ---------- ----------
Notes:
1. For this year, the financial and operating data reported in
this report is consistent with that of the annual report. Among
which, there are changes in the consolidation scope for financial
data, i.e. Air China Cargo is no longer in the scope of
consolidation.
2. The information on services and employees is based on the
calibre of Air China. Among which, the total number of employees
changed because of the factor of employee conversion. The number of
disabled employees is based on the "Confirmation Regarding
Verification of Employment of Disabled by Employers in Beijing"
Beijing Shunyi Disabled Labor Employment Service Center.
3. The information on energy consumption is based on the calibre
of Air China, Shenzhen Airlines, Kunming Airlines, Dalian Airlines,
Air China Inner Mongolia, Beijing Airlines and Ameco. Among which,
CO(2) emissions include only the direct emissions from aviation
fuel combustion, and other energy emissions have no national
unified standards for calculation currently; hazardous waste
emissions include the emissions from Ameco's hazardous waste.
4. In 2020, due to the pandemic, most of Air China's training
was carried out online, and the unit of total training volume was
changed to person*hour, which was different from that in previous
years.
Index
The HK-ESG content index is an index table of index content,
disclosures, and page numbers formulated based on the index of the
Hong Kong Stock Exchange.
Contents KPI Index of ESG GRI Standards
Guide
of Stock Exchange
About this
report 102-45/102-46/102-50/102-51/102-52/102-53/102-54
--------------------------------------------------
Overview Chairman's Statement 102-14
------------------------------------------------------- --------------------------------------------------
Company Profile 102-1/102-2/102-3/102-5/102-6/102-7/102-18
------------------------------------------------------- ------------- --------------------------------------------------
102-16/102-18/102-19/102-20/102-21/102-22/102-23
Management of 102-24/102-26/102-29/102-31/201-33/102-34/102-42
Sustainable Development 102-43/102-44/102-46/102-47/103-1
------------------------------------------------------- ------------- --------------------------------------------------
Corporate 102-15/102-16/102-17/102-29/102-30/103-1/103-2
Governance B6.3/B7/B7.1/B7.2/B7.3 205-2/205-3/206-1/417-1
--------------- ----------------------------------------------------- --------------------------------------------------
Fighting
Against
Feature COVID-19 B8.1/B8.2 203-1/415-1/416
--------------- -------------------------------------- --------------------------------------------------
Winning the
Battle
for Poverty
Alleviation B8.1/B8.2 203-1/413-1/415-1
--------------- ----------------------------------------------------- --------------------------------------------------
Safety -
Building
on the
Foundation Consolidating
for Safety
Development Management B6.4 416-1
--------------- -------------------------------------- --------------------------------------------------
Guaranteeing
Safe
Operation B6.4 416-2
--------------- ----------------------------------------------------- --------------------------------------------------
Promoting the
Safety
Culture B3 416-1
--------------- ----------------------------------------------------- --------------------------------------------------
Service -
A Improving
Heartwarming Service
Journey Management B6 103-1/103-2
--------------- -------------------------------------- --------------------------------------------------
Forging
Sincere
Service B6 416-1/417-1
--------------- ----------------------------------------------------- --------------------------------------------------
Protecting
Rights
and Interests
of Passengers B6/B6.2/B6.5 418-1
--------------- ----------------------------------------------------- --------------------------------------------------
Economy -
Becoming
the
World-class Creating Economic
Enterprise Value Together 201-1/203-1
------------------------------------------------------- --------------------------------------------------
Jointly
Driving
Industry 103-2/102-9/204-1/308-1/
Development B5/B5.1/B5.2/B5.3/B5.4 308-2/414-1/414-2
--------------- ----------------------------------------------------- --------------------------------------------------
Environment
- Building
a Beautiful Improving
Home Management
Together Systems A3/A3.1 307
--------------- -------------------------------------- --------------------------------------------------
Insisting on
Low-carbon
Operation A1/A1.1/A1.2/A1.6 302-4/302-5/305-7
--------------- ----------------------------------------------------- --------------------------------------------------
Strengthening
Pollution A1/A1.3/A1.4/A2/A2.1/A2.2/A2.3/A2.4/
Prevention A3/A3.1/A4.1 302-1/302-4/306-2
--------------- ----------------------------------------------------- --------------------------------------------------
Promoting
Environmental
Protection A3/A3.1 304-1/304-3
--------------- ----------------------------------------------------- --------------------------------------------------
Society -
Building Being
a Better Committed
Life to Staff B1/B1.1/B2/B2.3/B3/B4/B4.1/ 102-8/102-35/102-36/102-37/102-41/401-1/401-2
Together Development B4.2 404-2/405-1/406-1
--------------- -------------------------------------- --------------------------------------------------
Sincerely
Giving
Back to the
Society B8/B8.1/B8.2 413-1
--------------- ----------------------------------------------------- --------------------------------------------------
Performance Outlook for
2021
--------------- -------------------------------------- --------------------------------------------------
Table of Major
Indicators 301-1/302-3/305-4/305-5/306-2/404-1
------------------------------------------------------- ------------- --------------------------------------------------
Index 102-55
------------------------------------------------------- ------------- --------------------------------------------------
Third-party Assurance 102-56
------------------------------------------------------- ------------- --------------------------------------------------
Feedback Collection
------------------------------------------------------- ------------- --------------------------------------------------
Third-party Assurance
http://www.rns-pdf.londonstockexchange.com/rns/5413H_1-2021-8-4.pdf
Feedback Collection
Dear reader:
Thanks for reading the 2020 Social Responsibility Report of Air
China Limited, which is the thirteenth social responsibility report
published by Air China. You are welcomed to provide us with your
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