Luo Zhuping, board secretary for China Eastern, said, ‘We will discuss this issue after the Olympics, and all things will become clear then. . . Introducing Singapore Airlines can help us improve our financial status and enhance service quality’
A Singapore Airlines spokesman said the two airlines were in contact.
China Eastern is among the many airlines suffering from high fuel prices. China Daily quoted Luo as saying that the airline’s ratio of liabilities to assets is a perilous 95%.
Although China Eastern reported a net profit of US$83.8 million in 2007, its management has been seeking strategic investors after accumulating huge debts from losses in previous years.
Source: International Herald Tribune