A breakthrough has been made to the ongoing merger and restructuring between China Eastern (CES) and Shanghai Airlines. CES and Shanghai Airlines called a respective interim shareholders meeting on October 9 to vote for the merger and restructuring and other related issues. An overwhelming majority of the votes went for the merger, marking an end to the internal legal proceedings. The plan is now pending approval from the regulators and the final approval will trigger execution.
The merger is expected to optimize the asset structure of CES, achieve economies of scale, and improve CESs profitability and risk control. The integration of resources will enable CES to concentrate on the forceful execution of its strategy and service upgrade, particularly for better competitiveness of its fleet and aircraft lineup.
Based on this, the airports of Shanghai as the regional aviation hub will be reshaped to offer better competitiveness, better facilities and services and help serve the 2010 World Expo Shanghai and contribute to Chinas economic reform and socio-economic development.