Analysis: China Eastern faces more losses, regulatory scrutiny after plane crash

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Analysis: China Eastern faces more losses, regulatory scrutiny after plane crash
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China Eastern Airlines , faces deepening losses and closer regulatory scrutiny following the crash of a Boeing 737-800 jet on Monday with 132 people on board.

Rescuers on Tuesday scoured heavily forested slopes for survivors and data recorders from flight MU5735, which crashed a day earlier in the mountains of the southern region of Guangxi.The plane crash, China's first in 12 years, comes as its airline sector is struggling to find its footing amid the coronavirus pandemic, with air passenger traffic far below 2019 levels due to repeated outbreaks and a steep fall in international travel due to China's strict quarantine rules.

"My guess is that in the short term this is going to cause some issues for China Eastern as their maintenance records are reviewed, and there will likely be a short term pullback from Chinese consumers," said Ben Cavender, managing director at China Market Research Group in Shanghai. "This crash might also have mid- to long-term implications for China Eastern as the airline could be in an unfavorable position when applying for routes and slots over the next few years if it is found to be at fault."

Several social media users posted about how it had stoked their fears of flying and some wrote about changing their travel plans, especially after photos of the plane's wreckage and videos apparently showing its descent were shared widely online. Local media reported long queues at the counter of China Eastern at Guangzhou Baiyun airport, saying some travellers were seeking ticket refunds after the incident.

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