China Eastern to join Shanghai Air
This has been going on for months. If courtships progressed at this rate the human race would die out.
A proposed merger between China Eastern Airlines and Shanghai Airlines has been approved in principle by the Shanghai government according to China Business News.
The proposal calls for China Eastern to take a 60% stake in Shanghai Air, followed by a cash injection into China Eastern from the State-owned Assets Supervision and Administration Commission.
Spokesmen for both airlines said the carriers had not been informed by the government of any merger proposals or discussed the issue directly with each other. Nothing like keeping the important players in the dark.
Sources familiar with the matter said the government was discussing the possibility of brokering a merger of the two Shanghai-based airlines to create a dominant player with a 60% share of domestic flights in to and from Shanghai. No doubt, in the fullness of time, the two major players will be told.
Source: Reuters
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