Eastern Air Logistics, the cargo wing of state-owned China Eastern Airlines (MU, Shanghai Hongqiao), has filed a draft report for an Initial Public Offering (IPO) in which it plots an expansion of the fleet of its subsidiary China Cargo Airlines. The IPO is the final step in a two-year restructuring to diversify the company's ownership.

The prospectus said that despite the risks associated with the current trade tensions with the United States, the positive prospects of a rapidly growing market meant it could renew the leases on all of its six B777-Fs for an additional six years when their leases expire. It also foresees the expansion of the fleet with further 777-Fs, although the number of these or a date are not specified.

One of the six freighters, B-2077 (msn 37713) is on an eighteen-year operating lease, according to the prospectus, and was delivered in March 2010 from Bocomm Leasing, according to the ch-aviation fleets module. The remaining five are on twelve-year leases, delivered between February 2010 and July 2011, four of them (B-2078, msn 37714; B-2079, msn 37715, B-2082, msn 37716; B-2083, msn 37717) from CCB Financial Leasing, and one (B-2076, msn 37711) from Nomura Babcock & Brown. The remainder of China Cargo Airlines’ fleet consists of three B747-400(F)s, delivered during the same period. All aircraft are currently active.

Eastern Air Logistics added in the prospectus that capital raised from the IPO would also facilitate the purchase of two spare GE90 engines priced at USD30 million each, or a total of USD65 million including installation and related costs, a process that could take about two years. It already possesses one spare GE90 acquired in 2012.

Eastern Air Logistics was a wholly-owned subsidiary of China Eastern until February 2017, when the latter transferred it to Eastern Airlines Industry Investment Co. Ltd., which is itself also a wholly-owned subsidiary of the overall umbrella entity China Eastern Air Holding Co.