Shanghai Airlines + China Eastern

[CK]

China Eastern, Shanghai Air to combine after losses

China Eastern will combine with Shanghai Airlines after joint losses of CNY16.5b (US$2.4b) last year prompted the govt to bail out the two state-controlled carriers. 'We just got approval from the govt' June 6, Shanghai Airlines VP Feng Xin said. The combined group would have 306 planes and more than 600 routes, giving it a 50% share of air travel in China’s financial capital. China Eastern’s parent will get 17% of Shanghai Air as the first step in plan to merge the two carriers, Dow Jones said. Jinjiang International Holdings will transfer shares to China Eastern Air Holding, according to the report. The final size of China Eastern Air Holding's stake in Shanghai Air is yet to be determined, the report added.

Full Story: http://www.bloomberg.com/apps/news?p...transportation