Air China raises stake in China Eastern Airlines; to take on SIA?
14 September 2007
Air China's sister company China National Aviation Corporation has increased its stake in China Eastern Airlines to 11 per cent from 9.9 per cent. On Wednesday 12 September, the company filed documents to this effect with the Hong Kong Stock Exchange.
The move has prompted speculation that Air China, mainland China's largest international carrier, plans to go after China Eastern, which recently sold a combined 24 per cent stake to Singapore Airlines (SIA) and its parent company, Temasek Holdings.
China Eastern's stake sale to SIA has not been concluded, because the parties involved have yet to finalise the remaining terms of the transaction. Besides, the deal has yet to be approved by the shareholders of Singapore Airlines and Temasek.