|
China Eastern Airlines will merge with Shanghai Airlines in a share swap and issue A shares and H shares worth CNY7 billion (USD$1.03 billion) to replenish its working capital.
Trading in China Easterns shares listed in Hong Kong and Shanghai, suspended since last month will resume trading on Monday.
Shanghai Airlines will become a wholly-owned subsidiary of China Eastern while retaining its brand and independent operation, Xinhua news agency reported, citing Liu Jiangbo, spokesman of the team overseeing the tie-up.
The two money-losing airlines have been grappling with weak air travel demand as China's economy has continued to dwindle.
The merger will give China Eastern, one of China's three state-owned airlines, about a 50 percent market share in Shanghai, the wealthy coastal city that is China's financial hub.
Source = e-Travel Blackboard:
To read this article online, please visit
http://www.etravelblackboardasia.com/article.asp?nav=2&id=63304
|
China Eastern to merge with Shanghai Airlines
