News & Updates

China Eastern Seeks Foreign Partners July 21, 2006

     China Eastern Airlines said on Friday it was in talks with several foreign companies, including Singapore Airlines, to sell a strategic stake in the mainland carrier.
     Neither China Eastern nor Singapore Airlines have revealed the size of any possible deal. But China Eastern Chairman Li Fenghua was quoted by state media in April as saying that the company aimed to sell at least a 20 percent stake to a foreign investor, hopefully within the year.
     A 20 percent stake would be worth about USD$260 million, according to Reuters data.
     "To expand our business opportunities, our company has contacted Singapore Airlines, among several potential strategic investors, from time to time," China Eastern said in a statement in the Shanghai Securities News.
     "We have not reached any agreements," it said, promising a timely information disclosure once a deal is done.
     Sources at China Eastern said on Wednesday that the Chinese carrier was looking to sell a strategic stake to Singapore Airlines.
     Singapore Airlines also confirmed on Wednesday it was in talks with China Eastern regarding "possible opportunities", but added it had not reached a decision.
     "This is part of us talking to different carriers, part of general discussions that we have with other airlines about possible opportunities in China," a spokeswoman for Singapore Airlines said.
     The investment, if it goes ahead, could give China Eastern access to Singapore Airlines' extensive global network. It could also enable the carrier to better compete with its domestic rival Air China. Cathay Pacific Airways agreed in June to double its stake in Air China to 20 percent.

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Singapore Air Confirms Talks With China Eastern July 19, 2006

    Singapore Airlines said on Wednesday it was in talks with China Eastern Airlines regarding "possible opportunities" but had not reached a decision yet.
    Sources at China Eastern said earlier on Wednesday that the Chinese carrier was looking to sell a strategic stake to Singapore Airlines, which industry players regard as one of the best-managed carriers.
    Another China Eastern source familiar with the matter said talks between the two carriers had been under way for some months and that money raised from the share sale would go towards expanding China Eastern's fleet.
    A spokeswoman for Singapore Air said it had not made a decision on a possible investment.
    "This is part of us talking to different carriers, part of general discussions that we have with other airlines about possible opportunities in China," she said.
    Neither of the China Eastern sources would reveal the size of a possible deal, but company chairman Li Fenghua told state media in April that China Eastern aimed to sell at least a 20 percent stake to a foreign investor, hopefully within the year.
    A 20 percent stake could be worth about USD$260 million.
    The investment, if it goes ahead, could give China Eastern access to Singapore Airlines' extensive global network. It could also enable the carrier to better compete with its domestic rival Air China. Cathay Pacific Airways agreed in June to double its stake in Air China to 20 percent.
    Other Chinese airlines are also eager to bring in outside investors. China Southern Airlines is seeking a partner to shore up its cargo arm, and Air France KLM could be an ideal candidate, a senior company executive said this year.

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China Eastern to Fly to New York July 18, 2006

    China Eastern Airlines will launch a new route from Shanghai to New York starting from December 8.
     Following Beijing, Shanghai will become the second Chinese city linked with New York via a non-stop flight.
     China Eastern Airlines will operate the new route with an Airbus A340-600, the longest plane in the world.
     With three flights a week kicking off at 6:30pm on Monday, Wednesday and Friday, passengers will arrive in New York at 7:45pm local time on the same day because of the 12 hour time difference.
     Now, China Eastern Airlines owns two Sino-US routes, with the other route between Shanghai and Los Angeles.

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China Eastern Airlines Commits to Sophisticated Network Analysis with Sabre Airline Solutions July 18, 2006

This is sample text. To be replaced with content at a later time.China Eastern Airlines, one of the leading carriers in China, has signed a four-month contract with Sabre Airlines Solutions to implement best practice network planning and flight scheduling for the carrier.
     As the leading provider of software and services to the airline industry from planning to execution, Sabre Airline Solutions will leverage its industry leadership to support China Eastern Airlines in the areas of schedule optimization, network analysis and slot analysis.
     "With this engagement, China Eastern Airlines will maximize its current network and schedule profitability, increase its aircraft utilization and be in prime position to take full advantage of future market growth and opportunities," said Zhen-Ming Hu, general manager, Airline Planning and International Affairs Department. "As we approach the 2008 Beijing Olympics and 2010 Shanghai World Expo, it is critical that we invest in world-class services to maximize our global opportunities."
     Headquartered in the world's fastest growing market, Shanghai gives China Eastern Airlines the geographical advantage to serve China from South Asia, South East Asia, Hong Kong SAR Macau and the Pacific region.
     "We have been working with China Eastern Airlines in a number of areas ranging from airline operations to sales, marketing and now planning and scheduling. Our approach, centered around transfer of knowledge to the airline, is very attractive to rapidly evolving carriers such as China Eastern Airlines," said Nejib Ben-Khedher, president of the consulting practice within Sabre Airline Solutions. "We have doubled our consulting activities in China in 2005 versus 2004 and expect to post a similar growth this year. Our hands-on approach delivered by a mix of local and global experts is positioning us as a partner to the Chinese carriers."
     As a preferred long-term partner of Sabre Airline Solutions, China Eastern Airlines has already implemented Sabre Movement Manager, Sabre Load Manager, Sabre Dispatch Manager and Sabre AirFlite Schedule Manager. In the past, China Eastern Airlines has also invested in the consulting expertise of Sabre Airline Solutions professionals.
     Sabre Airline Solutions is the Asia/Pacific market leader in aviation technology. The company has experienced rapid growth in China and is working with the major airlines including Air China, China Eastern and China Southern. Sabre Airline Solutions recently established its Asia/Pacific headquarters in Shanghai as part of its move to advance the company's strategic business agenda in the world's fastest-growing market.

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