Air China is so persistent on seeking a tie-up with China Eastern Airlines that it indicated Hong Kong's Cathay Pacific Airways would join as it has management expertise that China Eastern required.

China National Aviation Corp, parent of Air China, will propose a more detailed plan and introduce the Hong Kong airline as a partner if China Eastern accepts its proposal, Air China's acting chairman Kong Dong said.

Kong said that Singapore Airlines is a well-managed, profitable and one of the world's best carriers but Cathay Pacific also is top-class airline.

Christopher Pratt, chairman of Cathay Pacific, said the carrier is keen on a stake in China Eastern and will back CNAC's plan, but the issue won't be done in the short term.

On January 8, CNAC blocked China Eastern's proposed sale of 1.88 billion H shares, or a 24-percent stake, at HK$3.80 (49 US cents) a share to SIA and Temasek Holdings. It offered instead to buy as much as 30 percent of the Shanghai-based carrier for HK$5 per share.

But China Eastern rejected its proposal on February 26 saying as the CNAC lacked "sincere intentions'' and "in-depth and thorough planning.''

Kong said CNAC is always sincere about the strategic partnership with China Eastern and will offer a detailed plan if the carrier accepts the current proposal.

(Shanghai Daily March 7, 2008)