Commercial Aviation
Eastern Air Logistics and SF Airlines Expand Partnership in 2026 Agreement
Eastern Air Logistics and SF Airlines deepen cooperation with a 2026 agreement focusing on China-US routes and Southeast Asia logistics hubs.
This article is based on an official announcement from CAAC News and Eastern Air Logistics.
On February 1, 2026, Eastern Air Logistics (EAL), the logistics arm of China Eastern Air Holding, and SF Airlines formally signed a “2026 Annual Cooperation Letter of Intent” in Penang, Malaysia. The agreement marks a significant deepening of the strategic Partnerships first established between the state-owned giant and China’s largest private cargo carrier in October 2025.
According to the official announcement released by CAAC News, the signing ceremony brought together executives from China Cargo-Aircraft Airlines (a subsidiary of EAL) and SF Airlines to operationalize their “1+1>2” synergy model. The collaboration aims to integrate EAL’s extensive international route rights and belly-hold capacity with SF Airlines’ massive freighter fleet and ground logistics network.
This latest move underscores a rapid evolution in Chinese logistics, focusing on securing supply chains for high-tech Manufacturing and cross-border e-commerce amidst shifting global trade patterns.
A core component of the 2026 agreement involves optimizing capacity on critical trade lanes between China and the United States. The two carriers have agreed to exchange capacity on key routes to maximize efficiency and reliability for high-value cargo.
According to the details released regarding the agreement, the cooperation will specifically target the following routes:
By coordinating schedules and space on these high-demand corridors, the airlines aim to better serve the booming cross-border e-commerce sector, which requires consistent lift for platforms shipping to North-American consumers. The partnership leverages China Cargo Airlines’ long-haul heavy-lift capabilities, primarily using its Boeing 777F fleet, alongside SF Airlines’ agility and domestic feeder network.
The decision to hold the signing ceremony in Penang, Malaysia, rather than a domestic Chinese hub, signals a strategic pivot toward Southeast Asia. Penang has emerged as a critical node in the global semiconductor supply chain, often referred to as the “Silicon Valley of the East.”
The agreement outlines plans to jointly develop intermodal logistics products that connect Southeast Asia to markets in Europe and the Americas. As manufacturing diversifies under “China Plus One” strategies, logistics providers are under pressure to offer seamless connectivity from new production hubs. “The choice of Penang as the signing venue signals a clear intent to capture the booming high-tech export market from Southeast Asia, ensuring they remain the logistics backbone for Chinese manufacturing wherever it moves.”
Data cited in the reports indicate that approximately 70% of Malaysia’s air cargo volume originates from Penang, with semiconductors constituting the majority of this flow. By establishing a stronger foothold here, EAL and SF Airlines are positioning themselves to control the logistics of high-tech components moving between China, Southeast Asia, and Western markets.
The Hybrid Model: State-Owned Meets Private Agility
We view this partnership as a definitive example of the “mixed-ownership” reform philosophy in action, even if strictly operational. Historically, China’s state-owned carriers (like China Eastern) and private integrators (like SF Express) operated in parallel lanes. This agreement bridges the gap.
SF Airlines brings a fleet of over 90 freighters (as of early 2025) and dominance in last-mile delivery. Eastern Air Logistics brings the belly capacity of over 800 passenger jets and established international traffic rights that private carriers often struggle to acquire quickly. By pooling these assets, they create a competitor capable of challenging global integrators like DHL, UPS, and FedEx on trans-Pacific and intra-Asia routes.
Furthermore, the focus on “Dual Circulation”, supporting both domestic consumption and international export, is evident. The partnership secures the supply chain for Chinese e-commerce giants expanding abroad (external circulation) while ensuring efficient import channels for high-tech components needed domestically (internal circulation).
What is the main goal of the EAL and SF Airlines partnership? Why was the agreement signed in Penang? What specific routes are mentioned in the 2026 agreement? Who are the specific entities involved?
Eastern Air Logistics and SF Airlines Deepen Ties with 2026 Cooperation Agreement in Penang
Strategic Capacity Swaps on Trans-Pacific Routes
The “Penang Factor”: Expanding into Southeast Asia
AirPro News Analysis
Frequently Asked Questions
The primary goal is to combine the international reach and heavy-lift capacity of Eastern Air Logistics with the domestic network and freighter fleet of SF Airlines to improve efficiency on China-US routes and expand services in Southeast Asia.
Penang is a major global hub for semiconductor manufacturing. Signing the agreement there highlights the airlines’ focus on serving the high-tech electronics supply chain and capturing cargo volume from Southeast Asia.
The agreement explicitly mentions capacity swaps on the Shanghai (PVG) to Los Angeles (LAX) and Shenzhen (SZX) to Los Angeles (LAX) routes.
The signatories were China Cargo Airlines (a subsidiary of Eastern Air Logistics) and SF Airlines (a subsidiary of SF Express).
Sources
Photo Credit: EAL