[photopress:singapore_girl.jpg,full,alignright]A seriously important move for all airlines in
The first and easy result is that China Eastern, which has been loosing serious money – a net loss of 46% in the first quarter of the year of RMB510.9 million ($66.3 million), after losing RMB3.3 billion in 2006) will probably be turned around and with SIA probably having 25% of the stock, will become a viable airline. The story is SIA is paying $770 million for the shares. If it paid nothing China Eastern Airlines would still have a bargain.
But this deal has far, far wider implications than the effect it will have on China Eastern Airlines. Most airlines of
The days when carriers just bothered about cattle class are well over. Airlines are redefining themselves as ultra-cheap carriers with zero frills. They get you there safely and on time and that is it. And airlines which carry passengers, especially business passengers, in a style that was not even dreamed of in Xanadu.
This is the area where the war for profits will eventually be fought: providing superior service for business passengers. At the moment there is no airline in
No airline in
Source: Channel News