Air China delays China Eastern plans

Air China said it has delayed plans to purchase China Eastern Airlines, the South China Morning Post reported. Air China’s Chairman Kong Dong said financial turmoil in the United States could hurt the airline industry. "Although oil prices have fallen below US$100 [a barrel], uncertainty grows on demand for air travel," he said. Instead, he said the company would focus on growth while improving staff quality and management skill. Early in the year, Air China derailed a planned purchase of a stake in China Eastern by Singapore Airlines. Air China’s higher bid for the airline led to a China Eastern shareholder rejection of the Singapore offer. However, China Eastern’s management opposed the Air China bid. China Eastern has since announced it is not interested in reopening discussions with Singapore Airlines.