SIA in talks with China
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The talks were confirmed last July and are said to be proceeding smoothly, but government approval will be required for any deal.
It’s understood that China Eastern is looking to raise capital by selling a stake of at least 25%, and has confirmed discussions with a number of potential strategic investors including SIA.
Chinese newspaper Shanghai Securities News quoted China Eastern chairman Li Fenghua as saying “so far, the negotiations with Singapore Airlines are smooth… But when we can reach an agreement will be up to the support of the government”.
The publication claimed that a deal between the carriers could be settled sometime this year.
Other sources say the carrier has asked the government if a foreign investor can own more than 25%, indicating that there could be a significant part of the airline in overseas hands.
China Eastern is the country’s third biggest carrier, and operates flights across China as well as international destinations in Japan, North America, Europe, Singapore, Bangkok, India and Australia.
The airline recently signed an expanded codeshare deal with Japan Airlines to cover its Nagoya-Beijing services.
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