Alipay to provide third-party online payment support to China Eastern website

China Eastern Airlines has formed a strategic alliance with Alibaba Group’s Alipay and Taobao subsidiaries.

The airline has taken this initiative to expand China Eastern’s capability to serve more customers through e-commerce.

Alipay will provide online payment support for ticket sales on the China Eastern website (www.ceair.com). China Eastern will also launch a flagship store on Taobao’s Taobao Mall to sell tickets directly to customers for all domestic flight routes.

“Direct online ticket sales is economical and convenient, thereby making it the most ideal way for a modern airline carrier to give back to its customers,” said Ma Xulun, general manager of China Eastern Airlines.

Through e-commerce, China Eastern aims to improve its ratio of direct ticket sales.

Additional online sales channels and online payment methods will help the airline save on operational costs as well as improve the efficiency of capital investments, said Xulun.

Taobao Mall, launched in April 2008, was established as a B2C platform for corporate retailers.

In late 2007, Taobao introduced an airline ticket purchasing channel. Company data indicates more than 800,000 searches are conducted daily in China for airfare prices on Taobao. Between September 14-20 of 2009, Alipay handled approximately US$132 million in transaction volume of online plane ticket sales.