China Eastern Airlines (MU, Shanghai Hongqiao) is moving ahead with plans to introduce a Low Cost Carrier amid signs the airline is once again on the look out for a new strategic investor.
Industry publication, Aviation Week, says the carrier's management has already dispatched teams to Europe to study the operations of Ryanair (FR, Dublin Int'l), easyJet (U2, London Luton) and SAS Scandinavian Airlines (SK, Copenhagen Kastrup). A recent internal memo to China Eastern staff lauded "EasyJet’s great success in online ticket sales, Ryanair’s record of continuous profits and the high loyalty of SAS customers."
As it stands, China Eastern has already begun to dabble in China's fledgling LCC industry with the metamorphosis of China United Airlines (KN, Beijing Nanyuan) from a full service carrier into a budget carrier already underway.
