Shanghai Air’s plunge opens chance for Air China
Air China may take advantage of record industry losses and a falling market to expand its presence in Shanghai. Air China President Cai Jianjiang has said he is interested in a stake in Shanghai Airlines, which controls 17% of air traffic out of Shanghai. Yesterday, Shanghai Airlines reported its largest-ever quarterly loss, of US$64 million, compared to a profit of US$11.3 million in the third quarter of 2007. An acquisition of Shanghai Airlines would hinge on the Shanghai government's willingness to relinquish control of its more than 50% stake in the airline. Li Jiaxiang, China's chief aviation regulator, has encouraged consolidation plans to create a Chinese "super carrier" to challenge foreign competitors.
Source: Bloomberg
Possibly Related Posts:
- China Cosco confident on container rates
- China to bid on US high-speed rail projects
- Air China plans $952 million new share sale
- China Southern Airlines to raise $1.5 billion through new shares
- China Southern suspended after government cash injection
