China Eastern Airlines shareholders rejected its planned 24 percent stake sale to Singapore Airlines (SIA) during a vote in Shanghai on Tuesday. Market focus has now shifted toward the proposal that China National Aviation Corp. (Group), or CNAC, promised to submit within two weeks.
Hong Kong-based CNAC is a wholly-owned subsidiary of Air China's parent, China National Aviation Holdings Company (CNAHC).
An official from CNAC yesterday refused to give any details about the proposal, but said that it would be based on the principal of business consolidation and building Shanghai into an aviation hub.
According to CNAC, business consolidation will cover their shared international routes and cargo freight and Cathay Pacific Airlines, which has forged an alliance with Air China in a share-swap deal, would be included in the consolidation. Air China also proposes share swap with China Eastern.
The official denied any attempt by CNAC to acquire China Eastern and stressed the importance of building Shanghai into an aviation hub through cooperation.
For more details, please read the full story in Chinese (http://www.cs.com.cn/ssgs/02/200801/t20080110_1343951.htm).
(China.org.cn January 10, 2008)