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| Friday, September 05, 2008 23:35:49 |
China Eastern Airline seeks foreign partners
China Eastern Airlines Corp Ltd., one of China's top three carriers, confirmed that it is in talks with several foreign investors, including Singaporean Airlines Co Ltd. Reuters reported.
Sources at China Eastern told Reuters on Wednesday that the Chinese carrier was looking to sell a strategic stake to Singapore Airlines, the world's second-biggest airline by stock market value. As early as in April, China Eastern Chairman Li Fenghua said that the company aimed to sell at least a 20 percent stake to a foreign investor
The investment, if it goes ahead, could give China Eastern access to Singapore Airlines' extensive global network. It could also enable the carrier to better compete with its domestic rival Air China. Cathay Pacific Airways agreed in June to double its stake in Air China to 20 percent, Reuters wrote.
Other Chinese airlines are also eager to bring in outside investors. China Southern Airlines Co. Ltd., the country's largest carrier by fleet size, is seeking a partner to shore up its cargo arm, and Air France KLM could be an ideal candidate, a senior company executive told Reuters this year.
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