According to a report in the South China Morning Post which is published out of Hong Kong Air China has said it has delayed plans to purchase China Eastern Airlines.
Air China’s Chairman Kong Dong said financial turmoil in the United States could hurt the airline industry. He said, ‘Although oil prices have fallen below US$100 [a barrel], uncertainty grows on demand for air travel.’
All of which is a bit complicated and makes the situation of China Eastern something less than totally satisfactory.
Early in the year, Air China managed to blocka 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.
China Eastern has since said it is not interested in reopening discussions with Singapore Airlines.
Source: South China Morning Post (subscription.)
You must log in to post a comment.