The regulatory fallout for China Eastern Airlines after an apparent organized act of protest by several of its Yunnan-based pilots in late March has finally hit the Shanghai-based carrier, which has been stripped of its Kunming-Xishuangbanna and Kunming-Dali routes, effective May 4, according to Kunming media reports.

The cancellation of the popular routes by aviation regulatory body the Civil Aviation Administration of China (CAAC) comes as a result of a rare public display of defiance by pilots on 21 flights last month. China Eastern Airlines had stated that pilots in its Yunnan subsidiary deliberately turned back midway through their provincial flights out of Kunming in late March – effectively going on strike in midair – with dissatisfaction with strict lifetime contracts and low pay both cited as reasons for the pilots' actions.

China Eastern released a statement in early April saying that two high-ranking officials in the company's Yunnan subsidiary had been fired and a deputy general manager from the company's Shanghai headquarters would serve as head of the branch.

In addition to the canceled Xishuangbanna and Dali feeder routes, CAAC reduced the number of flights China Eastern can fly from Kunming to Lijiang, Shangri-la, Mangshi, Lincang, Pu'er and Wenshan by 20 flights daily, effective April 26.

Details are unavailable regarding whether the routes will be available to other carriers or if China Eastern will later be eligible to service the routes again. Passengers who have purchased canceled flights are entitled to a full refund at China Eastern offices.

The cancellation of the Xishuangbanna and Dali routes comes as both regions prepare for an influx of summer and Olympics-related tourism.

Update: Bloomberg is reporting that Air China and three other carriers will receive the canceled routes beginning May 4.

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China Eastern Airlines has officially stated that pilots in its Yunnan subsidiary deliberately turned back midway through their provincial flights out of Kunming on Monday and Tuesday of last week – effectively going on strike in midair, according to a China Daily report.

According to the report, all pilots from the total of 21 affected flights have been suspended from their jobs. An internal investigation by China Eastern and a probe by aviation regulator Civil Aviation Administration of China (CAAC) are both currently underway.

China Eastern released a statement yesterday saying that two high-ranking officials in the company's Yunnan subsidiary have been fired and a deputy general manager from the company's Shanghai headquarters has been named head of the branch, where he will investigate the reason for the rare demonstration.

The China Daily report said the reason for the mid-air pilot strike was related to grievances related to low pay for pilots of feeder routes such as those within Yunnan as well as overtime and night shift-related issues. But a report last week on China.org.cn attributed the disrupted flights to pilot anger regarding restrictive contracts aimed at preventing poaching by other airlines:

Pilots in state-owned companies have been forced to sign 99-year contracts with their employers. If they quit, they must pay compensation ranging from 700,000 to 2.1 million yuan.

While China Eastern and CAAC investigate the incidents of last week, passengers on the disrupted flights continue to seek compensation. China Eastern said it has compensated some of the passengers and will eventually compensate all of those affected.

Related article: China Eastern officials, pilots meet after Kunming protest

China Eastern Airlines and its Yunnan subsidiary held an emergency meeting this week regarding what appears to be an organized protest by the airline's pilots in Kunming.

On Monday, 14 planes leaving Kunming for destinations elsewhere in Yunnan turned back, with pilots citing bad weather as the reason, despite normal weather conditions at all the airports in question.

Officials from China Eastern's Shanghai headquarters and its Yunnan subsidiary met with 50 pilot representatives in Kunming on Wednesday for closed-door talks that lasted more than three hours, according to Kunming media reports. According to some Chinese media reports, the pilots involved are facing lifetime bans from flying on the mainland.

The apparent strike is the third major protest by pilots in China in the last month. On March 14, 40 Shanghai Airlines pilots called in sick. On March 28, 11 pilots from East Star Airline in Wuhan requested sick leave.

China's aviation industry is currently expanding flights so quickly that the supply of pilots cannot keep pace. According to a report on the website China.org.cn, the problem is expected to intensify in the coming years:

In 2004, when China's first private airline, Okay Airways, was founded, China had about 10,000 pilots flying 700 airplanes. Private capital has since poured into the industry. By 2010, China expects to have 1,250 domestic commercial jets, which will require at least 6,500 more pilots.

Domestic aviation schools train only 600 to 800 pilots each year, so private companies have frequently been forced to headhunt for more pilots.

The short supply of pilots has led to state-owned airlines including China Eastern to force their pilots – who are not allowed to form labor unions – to sign 99-year contracts under which a pilot must pay its employer compensation ranging from 700,000 to 2.1 million yuan if they quit, the report said.

Several lawsuits have been filed by disgruntled pilots in the last two years, but none have made it to court.

Image: clzg.cn

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