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China's 3rd largest airline rejects proposed alliance with Air China

China's 3rd largest airline rejects proposed alliance with Air China

China Eastern Airlines, the country's third largest carrier, has rejected a proposed alliance with Air China but added it would continue searching for strategic partners.
China Eastern said late Tuesday the proposal from China National Aviation Corp., parent of flagship carrier Air China, "lacks sincerity, planning and mutual trust and it would be hard to create a basis for cooperation."
"The Board (of directors) has decided that it will not give further consideration to the CNAC Proposal," it said in a statement to the Shanghai Stock Exchange.
China Eastern added it would continue seeking strategic investors to strengthen its core business in aviation transport, which might offer a glimmer of hope for a deadlocked plan to tie-up with Singapore Airlines.
"The cooperation between China Eastern and SIA would be better than one with CNAC in terms of mutual complement of flight routes, cost control and synergic effects," it said, citing financial adviser Shenyin Wanguo Securities.
Singapore Airlines and Temasek Holdings, Singapore's state-linked investment firm, signed a preliminary deal in September to take a 24-percent stake in China Eastern for US$923 million.
But minority shareholders rejected the bid, worth 3.80 Hong Kong dollars per share in January.


Updated : 2021-05-06 23:18 GMT+08:00