[photopress:air_sia.jpg,full,alignright]Singapore Airlines and the city-state’s Temasek Holdings have signed a final agreement to buy 24% in China Eastern Airlines, China’s third-largest carrier.
This is a set set agreement, to use an American term. It is a done deal. It can be seen as a key move in the battle for Shanghai. And, on a wider basis, for passengers who are looking for a slightly more sophisticated travel experience.
It is the first time a foreign carrier has taken a share in a major state-controlled airline company in China, and analysts say it could herald further changes in the industry.
The strategic cooperation agreement between Singapore Airlines and China Eastern sets out areas of cooperation, including flights, operations, service, procurement, marketing and training.
And China Eastern could do with all the help it can get in some of those areas especially marketing and training. If it can create a sort of Singapore Girl, sexist though it may be, image for China Eastern it will totally transform the future of the airline.
Cathay Pacific will not be best pleased.
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