China Eastern's alliance future depends on new investor

[Pieter C. 5]

China Eastern's alliance future depends on new investor

 

Thursday April 5, 2007

As the three global alliances angle for a foothold in the Chinese market, China Eastern Airlines is leaving its options open, preferring to identify a new strategic investor before committing to one of the groupings.

 

The carrier told the Shanghai Securities Gazette that it is speeding up talks on selling off a 20%-25% stake to a new investor, likely a foreign airline that already may be an alliance member. "There is no need to rush now, as we don't want to disturb our ongoing negotiations," it told the paper. China Eastern Airline Group holds a 59.9% share of the carrier with the remaining shares in circulation. It intends to maintain a controlling stake.

 

American Airlines has attempted to recruit CEA into oneworld and said the Chinese carrier was interested but that "there is no specific timetable on when to make it happen." Korean Air has lobbied on behalf of SkyTeam, which already has signed up China Southern Airlines. China Eastern said its contact with each of the three alliances has been "confined in internal discussion."

 

Singapore Airlines, a member of Star Alliance, is pegged as the most probable strategic investor in CEA. "We are negotiating with China Eastern about possible partnership to hold a stake, but I don't think that will happen in the near future," a top SIA executive reportedly told the paper. CEA Chairman Li Fenghua noted there are several foreign airlines showing interest in investing. It refused to disclose candidates other than SIA.

 

Membership in Star may be problematic, however, as CEA's biggest competitor, Shanghai Airlines, will join that alliance this year. Air China also will join Star, while China Southern is heading to SkyTeam.

 

 

[Keith T 2]

I wish negotiators from all sides good luck with MU. They're not the easiest airline to deal with, to put it mildly.

[Pieter C. 5]

More news of another Chinese airline:

 

Air China's Shanghai strategy includes new cargo JV with Cathay

 

Tuesday April 17, 2007

Air China unveiled details of the new cargo airline it plans to operate in partnership with Cathay Pacific Airways, to be based on the existing China Cargo Airlines that flies out of Beijing.

 

The new carrier, in which CA will hold a 51% stake, is scheduled to launch in June and will hub in Shanghai. CA currently holds 51% of CCA, while Citic Pacific and Beijing Capital Airport Group have stakes of 25% and 24% respectively. "We are discussing with Citic Pacific and Beijing Capital Airport Group on how to cede their shares in China Cargo Airlines. They can either hold CA's shares in exchange or sell their stakes in cash," CA Planning and Development Dept. Deputy Director Hu Pengbin said.

 

There is widespread speculation that Cathay will invest in cargo aircraft for its 49% stake in the new carrier, but that is just one option, CA noted. Last year CX introduced two 747-400BCFs and posted record cargo revenue of HK$11.98 billion ($1.53 billion).

 

The cargo venture is said to be an important part of CA's strategy to build Shanghai as a hub, which involves expanding international services and integrating a subsidiary from nearby Zhejiang Province into a new company employing approximately 1,000 people to control its business in the Yangtze Delta region, according to CA VP Yang Lihua. It intends to establish a cargo station at PVG capable of processing 1.2 millions tons each year.

 

This year CA plans to take delivery of 24 aircraft comprising four A319s, two A321s, seven A330-200s and 11 737-800s.

 

 

[Pieter C. 5]

Losses on aircraft sales plunge China Eastern into red ink

 

Monday April 23, 2007

China Eastern Airlines reported a 2006 net loss of CNY2.78 billion ($359.8 million), reversed from a net profit of CNY60 million in the prior year, on a 39% drop in operating revenue to CNY36.8 billion.

 

The carrier attributed the result mainly to "sale of old aircraft. . .In 2006 we sold some old aircraft whose actual sale price was far lower than their book value, which resulted in a loss of CNY2 billion last year," according to Luo Zhuping, secretary to CEA's board. The company also cited rising oil prices.

 

Operating expenses increased 49% to CNY34.05 billion, driven by a 52.3% jump in fuel costs to CNY13.53 billion. Passenger boardings climbed 44.3% to 35 million and load factor improved 2 points to 71.3%. Cargo traffic rose 13.59% to 2.44 billion FTKs.

 

"This year we are committed to making a turnaround in performance and building our high-end service brand," GM Cao Jianxiong said.

 

CEA has an optimistic outlook for the Shanghai air transport market and plans to boost capacity this year. It will take delivery of two A319s, two A320s, four A321s, one A330-200, five A330-300s, two 737-700s, three ERJ-145s and one 747F in 2007. It has been discussing selling a 20%-25% stake to Singapore Airlines as early as the middle of the year.

 

Among China's three biggest airline companies, China Eastern is the only one that suffered a 2006 loss. China Southern Airlines posted net income of CNY188 million and Air China reported a net profit of CNY3.19 billion

 

[Pieter C. 5]

Friday May 11, 2007

China Eastern Airlines stock continued to soar yesterday as widespread speculation continued that Singapore Airlines is on the verge of taking a significant stake in the carrier despite CEA's insistence that concluding any deal requires more time. In the statement, CEA refused to offer details about any negotiations with SIA, the most probable strategic investor. An SIA spokesperson confirmed that the carriers are "talking about possible cooperation" but said in a statement cited by press reports that "there have been no decisions to pursue any other relationships at this point in time."

 

An internal source at CEA said that the company has little leverage in talks with SIA because of its poor financial performance. "That's why it's been so hard to reach an agreement with SIA, even though the talks have lasted for ten months," the source said. China Eastern Airline Group holds a 59.9% share of the carrier and intends to sell off a 20%-25% stake to a new investor while maintaining a controlling stake. Insiders speculate that it may opt for circulation of additional A and H shares tailored for SIA, although this practice also may challenge the controlling stake position. Analysts have noted that the cheaper H shares will be more attractive to SIA, which may walk away if A share prices rise higher than expected.

 

Last week Air China expanded its stake in CEA to 8.26% from 7.88% through the purchase of 6 million H circulating shares. JP Morgan also raised its stake to 5.12% by paying HK$12.8 million ($1.6 million) for 5.22 million H shares. UBS noted that a "drop of fuel price, appreciation of the yuan and strong market demand" will be main contributors to CEA's turnaround this year but that the deal with SIA is key. CEA reported a 2006 net loss of CNY2.78 billion ($360.9 million) and a CNY510.9 million loss in the first quarter.

 

 

[Seng Lim 0]

Singapore Airlines May Buy China Eastern Air Stake (Update3)

 

By Clare Cheung and Tian Ying

 

May 22 (Bloomberg) -- Singapore Airlines Ltd., the world's largest carrier by market value, may announce plans to invest in China Eastern Airlines Corp. as economic growth boosts travel demand in the world's most populous nation.

 

``We have a major issue'' to disclose, Luo Zhuping, China Eastern's board secretary, said by phone today. Singapore Airlines will make an announcement, spokesman Stephen Forshaw said in a telephone text message. Shares of both carriers were suspended from trading.

Buying a stake would give Singapore Airlines more access to an air travel market expected to grow fivefold by 2025. China Eastern, the only unprofitable listed carrier in the country last year, has sought investors because of its debt level and to help fend off competition from Cathay Pacific Airways Ltd. and Air China Ltd. in Shanghai, its home market.

 

``The suspensions may signal that the two companies have reached an agreement,'' said Li Lei, an analyst at China Securities Co. in Beijing. ``Singapore Airlines is one of the best airlines in the world and it would provide strong support to China Eastern.''

 

Government Talks

 

Shares of China Eastern, the nation's third-largest carrier, have more than doubled in Hong Kong this year, raising its market capitalization to $4.88 billion, according to data compiled by Bloomberg. The stock rose 7.8 percent to HK$3.73 in Hong Kong yesterday and gained 3.6 percent to 9.59 yuan in Shanghai.

 

The airline said on May 14 that it had begun government- level talks about selling a stake, possibly to Singapore Airlines.

 

A deal would be ``positive for China Eastern because cooperation with Singapore Airlines may help improve its operational efficiency,'' said Pauline Dan, who helps manage $2 billion at Manulife Asset Management in Hong Kong. ``It may also increase China Eastern's exposure to international markets.''

 

Singapore Air reported a record S$2.12 billion profit for the year ended March, as Asia's economic growth and new planes helped boost its passenger numbers. The carrier also sold a building and its stake in an aircraft-leasing business during the year.

 

The airline's shares gained 0.6 percent yesterday to S$18.40. The stock has gained 5.1 percent this year.

 

Cathay Pacific, Hong Kong's largest airline, has built a 17.5 percent stake in Air China, the nation's largest international carrier. Air China controls a similar-sized stake in Cathay Pacific following a wider deal last year, centered on Cathay Pacific's takeover of Hong Kong Dragon Airlines Ltd.

 

Chinese airlines have to remain under domestic majority ownership, according to government regulations. A single overseas entity is only able to own as much as 25 percent.

 

Travel Growth

 

China's economy has grown at least 10 percent for the past four years, boosting the demand for air travel. Chinese carriers flew 160 million passengers last year, 15 percent more than a year earlier, according to the General Administration of Civil Aviation.

 

The number of flights in China and its airline capacity may rise more than fivefold in the 20 years ending 2025, according to Boeing Co., the world's second-largest commercial airplane maker.

 

China Eastern expects to post a first-half loss because of debts and more competition, it said on April 27. The airline is facing increasing competition from Cathay Pacific and other carriers in Shanghai. A large amount of debt, which accounted for 95 percent of its total assets on March 31, also added pressure on its operations.

 

China Eastern's ``management is lagging behind other rivals. To survive, it has to tap a foreign partner's expertise,'' said China Securities' Li.

[Pieter C. 5]

China Eastern, Singapore Air Halted Amid USD$1 Bln Buy Talk

 

May 22, 2007

Shares in China Eastern Airlines and Singapore Airlines were suspended on Tuesday amid reports that Singapore would soon buy up to a quarter of the loss-making, Shanghai-based carrier for nearly USD$1 billion.

 

A deal would bolster access to booming eastern China for Singapore Air, and beef up China Eastern's balance sheet to help it compete with rivals such as a newly forged alliance between Beijing-based Air China and Hong Kong's Cathay Pacific Airways.

 

China Eastern's Hong Kong shares closed at HKD$3.73 before the suspension, having gained 60 percent in three weeks amid speculation it was close to unveiling a deal with the Singaporean carrier. Its American Depositary Receipts gained 9.4 percent.

 

A deal would satisfy the dual objectives of giving SIA a 25 percent stake, while maintaining Chinese state control at over 50 percent, Merrill Lynch said on Monday.

 

China Eastern (CEA), the smallest of the country's three main carriers, would sell 2.05 billion Hong Kong-traded shares to Singapore Air, while the state would buy 1.3 billion new A shares, the influential Beijing-based Caijing magazine reported earlier this month.

 

The Shanghai Securities News cited CEA Chairman Li Fenghua as saying on Monday that China Eastern intended to sell up to a quarter of the airline to a foreign strategic investor.

 

Both companies declined comment. Singapore Airlines said it would make a statement after the market close.

 

Based on the stock's last close, Singapore Airlines would have to pay more than HKD$7.65 billion (USD$980 million) for the CEA stake.

 

China Eastern posted a loss of CNY2.78 billion yuan (USD$363.3 million) in 2006. Rivals Air China and China Southern Airlines were both profitable.

 

Analysts and Chinese state media said a deal was far from certain. Negotiations to secure equity investment from Singapore Air were going smoothly, but a deal would depend on regulatory support, CEA's was quoted as saying.

 

"While the introduction of a foreign strategic partner is undoubtedly a positive for CEA, we believe it would take time for the carrier to turn around given the depth of its problems," Cazenove analyst Andrew Au wrote on April 26.

 

"Of more immediate interest to shareholders is whether the strategic partner would be prepared to pay a premium over current valuation for the stake and if so, how much."

 

(Reuters)

 

[Pieter C. 5]

Singapore Air Up On China Eastern Stake Talk

 

May 23, 2007

Shares of Singapore Airlines rose 1.6 percent on Wednesday on reports it will buy a USD$1 billion stake in loss-making China Eastern Airlines.

 

Singapore Air shares rose to SGD$18.70 when trading resumed after it said late on Tuesday it was in advanced talks with an unnamed partner on a potential strategic investment.

 

Caijing, an influential Chinese financial magazine, said state-controlled Singapore Air would take a 25 percent stake in China Eastern for HKD$7.9 billion (USD$1 billion), buying 2.05 billion new H shares -- Hong Kong-listed shares in mainland Chinese companies -- at HKD$3.88 per share.

 

However, a source close to the smallest of China's three main carriers said the H share placement was just one option discussed, but had yet to be finalized.

 

"Other options have been tossed around including the placement of all A shares or A plus H shares," the source said, adding the domestic currency A share option seemed unlikely now given the sharp rise of China Eastern's share price.

 

The carrier's A shares have nearly doubled to 9.6 yuan (USD$1.25) in the past two months. China Eastern shares traded in Shanghai and Hong Kong remained suspended on Wednesday.

 

Industry analysts are positive about a China Eastern tie-up with Singapore Air that would give the Chinese carrier access to its partner's extensive global network, and financial backing.

 

Singapore Air first confirmed last July it was in talks with the Shanghai-based airline.

 

JPMorgan analyst Peter Negline noted any deal between the two would be complex because of Chinese government involvement, management control and board seats at China Eastern, equity accounting losses and China Eastern's future airline alliance membership.

 

"A potential deal could easily run aground on any or all of these issues," said Negline. "In our view, this is a clear message that SIA wants a deal that makes sense. If anything, we see this as a point scored for SIA's CEO, who has clearly indicated he will not do just any deal."

 

CIMB analyst Raymond Yap said that while there would be long-term benefits for Singapore Air from buying into China Eastern, it would have to bear the upfront pain of bringing the Chinese carrier up to its standards of service.

 

"An investment in China Eastern would give SIA strong access to a fast-growing Chinese aviation market and enhance its network connectivity to the Chinese hinterland," he said.

 

(Reuters)

 

[Keith T 2]

Humph - so much for the MU joining oneworld rumours...

 

MU/CA/FM all in Star - how will that work?

 

Other possibility I think can of is some kind of cross-ownership/cross-alliance deal like CX and CA.

 

Will be interesting to see what happens next.

 

Not that I'd be rushing to fly any mainland Chinese carrier soon, alliance membership or not.

Edited May 27, 2007 by Keith T

[Pieter C. 5]

China Eastern Deal Stirs Beijing Concerns

 

May 29, 2007

China Eastern Airlines' USD$1 billion equity deal with Singapore Airlines has raised concerns in Beijing over share issuance and the Singapore government's role, sources close to the deal said on Tuesday.

 

Those concerns are not expected to scuttle the deal, which could receive Beijing's approval as early as this week, but they have cast some uncertainty over the shape that a final deal may take, the sources said.

 

China Eastern has agreed in principle to sell a nearly 25 percent stake to Singapore Air and its majority owner Temasek, but the deal is pending regulatory approval, the sources said.

 

Caijing, an influential Chinese financial magazine, said last week that Singapore Air would buy 2.05 billion of the Chinese carrier's new H shares -- Hong Kong-listed shares in mainland Chinese companies -- at HKD$3.88 (USD$0.496) per share.

 

But the sources said details of the deal had not been finalized, and options under consideration included the issuance of only domestic A shares or of both A shares and H shares.

 

The carrier's A-shares, traded in Shanghai, had nearly doubled in two months to CNY9.6 yuan (USD$1.26) per share before they were suspended from trade last week, more than double the HKD$3.73 value of its H-shares, which have also been suspended.

 

"Expectations for the issuance of A shares are very high, but that could make the deal too expensive given the soaring share price of the loss-making Chinese carrier," one of the sources said, adding that the type of shares to be sold would be up to Chinese regulators to decide.

 

Another factor holding up the deal is the involvement of Singapore's state investment arm, Temasek, which has some investments in China's financial sector, including a minor stake in Minsheng Banking Corporation.

 

No foreign government has been allowed to invest in China's airline industry, deemed strategically important for the country, and the deal, if approved, could set a precedent, the sources said.

 

However, both sources said Beijing would most likely approve the deal this week, which would give China Eastern access to Singapore Air's extensive global network and financial backing.

 

(Reuters)

 

[Keith T 2]

http://www.flightglobal.com/articles/2007/...ce-partner.html

 

Oneworld woos China Eastern Airlines as alliance partner

By Nicholas Ionides

 

Airline alliance Oneworld is to continue to court Shanghai-based carrier, China Eastern Airlines as a potential future member despite Singapore Airlines, a member of a rival alliance, taking a stake in the carrier.

 

Singapore Airlines is a member of Star Alliance, but Oneworld says that it can still accommodate carriers in China that are partners with another group.

 

John McCulloch, the alliance's managing partner, said, at a briefing on the sidelines of the International Air Transport Association annual general meeting in Vancouver that he does not believe SIA's expected purchase of a sizeable minority stake will complicate Oneworld's discussions with China Eastern.

 

"China is an unusual market for this sort of activity. We are proceeding as before," "I don't think it is going to complicate things," he says.

 

China Eastern is the only one of China's "big three" carriers that has yet to commit to joining an alliance, after Air China announced last year that it would join Star and China Southern Airlines earlier declared that it would join SkyTeam.

 

McCulloch says Hong Kong-based Oneworld member, Cathay Pacific Airways, already has a sizeable stake in future Star member Air China, so there is a precedent for cross-alliance shareholdings in the China market.

 

He says that as Cathay subsidiary Dragonair will be joining as an affiliate member of Oneworld later in the year, the China market will be well covered until a member from within mainland China is brought in.

 

China Eastern has for some time been seeking a foreign investment partner and it is in late-stage talks with SIA, which together with Singapore government investment arm Temasek Holdings is widely expected to take a stake of up to 25%. Chinese government approval is currently being sought.

 

Fast-growing Chinese carrier Hainan Airlines has also expressed interest in joining Oneworld and McCulloch says that "we will continue to talk with them".

 

"Hainan is an airline we have had contact with," he says, but "our focus is obviously on the remaining major carrier that is unaligned".

 

Oneworld is also continuing to monitor developments in the fast-changing Indian market, where consolidation has begun to take place after several years of phenomenal growth following the establishment of new domestic carriers.

 

McCulloch says: "It is a huge market. It is a major target and focus for us. But we think that it is going to take a couple of years for it to consolidate to the point where the right decision can be made.

 

"Our view is that the market will consolidate to three or four major players with a domestic and international network, [which will provide] "fertile ground" for the world's major alliance groupings.

 

"Nothing is going to become clear for a number of years," he says.

 

Jet Airways please!

They already codeshare with QF.

 

Hmm - unless I absolutely have to, I'd rather connect via HKG on CX/KA or NRT with JL than to fly any of the mainland carriers, regardless of alliance membership. Particularly as MU isn't exactly oneworld quality. But good to know that mainland China is soon accessible and Qpts-accruing.

Edited June 7, 2007 by Keith T

[Pieter C. 5]

China's big three airlines--Air China, China Southern Airlines and China Eastern Airlines--expect to post first-half profits thanks largely to "continuous growth of the domestic market" and the appreciation of the yuan. China Southern yesterday said it expected a reversal from its CNY835 million ($110.4 million) loss in the year-ago semester, while earlier this week Air China said in a filing with the Shanghai Stock Exchange that it expected to report a profit more than 20 times greater than the CNY45.8 million earned in the first six months of 2006. China Eastern is expecting to return to the black following a CNY40 million loss in the 2006 first half.

 

China Eastern Airlines created a Beijing Branch Company in order to establish itself further in the capital, where its passenger traffic has increased 15% over the past two years but its market share is just 11%. The Shanghai-based carrier noted that Beijing offers greater opportunities due to its location and next summer's Olympic Games. "We can take advantage of our Beijing Branch Company to expand our network in the Beijing-centered northern region," MD Cao Jianxiong said.

 

Expanding in Beijing is becoming an attractive option for Chinese airlines based outside the capital. Guangzhou-based China Southern Airlines set up a Beijing Branch Company in late 2005 in order to extend its international network. Hainan Airlines parent HNA Group will base its Grand China Air in Beijing, and Air China is attempting to hold off the competition with a CNY2.27 billion ($299.6 million) investment in an expansion of its Beijing operation this year.

 

Separately, CEA President Li Fenghua revealed that the relevant government bodies are supportive of its 25% stake sale to Singapore Airlines and that approval should come very soon.

 

 

 

 

[Pieter C. 5]

China Eastern, Singapore Air Deal Approved

 

August 27, 2007

China Eastern Airlines has won Chinese government approval to sell a stake to Singapore Airlines, two sources familiar with the situation said on Monday.

 

"The government has in principle given the go-ahead to the China Eastern and Singapore Air deal. The two sides will sign an agreement over the weekend," one source close to the talks between the two companies said.

 

A second source confirmed that China Eastern had won approval for the long-expected tie-up, adding the Chinese carrier's shares, which have been suspended from trading since May 23, would resume trading next month.

 

The deal would be the first acquisition of a large stake in one of the big three Chinese airlines by a foreign carrier.

 

Neither source provided details of the deal.

 

China Eastern chairman Li Fenghua said in June that China Eastern planned to sell Hong Kong-listed H shares, equivalent to a nearly 25 percent stake, to Singapore Airlines and its majority owner Temasek.

 

Chinese media reports have valued the deal at roughly USD$1 billion.

 

China Eastern and Singapore Airlines declined to comment.

 

Industry analysts say the tie-up could give China Eastern financial backing and access to its partner's extensive global network, while Singapore Airlines could expand its foothold in the fast-growing China market.

 

Li said in June that China Eastern expected to return to the black for the first half of this year, helped by strong traffic growth and new accounting rules, after posting a year-earlier net loss of CNY1.46 billion yuan (USD$193 million).

 

(Reuters)

 

[Naim 6]

 

SIA takes stake in China Eastern

 

By Jamil Anderlini in Beijing

 

Published: September 2 2007 13:41 | Last updated: September 2 2007 19:07

 

Singapore Airlines and Singapore’s state investment agency have agreed to pay $923m for 24 per cent of struggling China Eastern Airlines, in a long-awaited deal that signals the opening of the Chinese mainland’s aviation sector to outside investors.

 

SIA would pay $602m for a 15.7 per cent stake in CEA, while Temasek, the government investment company that owns nearly 55 per cent of SIA, would pay $321m for 8.3 per cent, airline officials said on Sunday.

 

The government hopes that China’s inefficient and loss-making airlines will raise their game by selling stakes to experienced foreign operators who can supply cash and expertise to the domestic carriers.

 

The sale of a CEA stake could herald more foreign investments and consolidation for the country’s proliferation of smaller airlines as well as larger rivals China Southern and Air China.

 

CEA, the weakest of China’s big three state-owned airlines, is weighed down by huge debts and only just managed to make a small profit in the first half of the year, after two years of losses.

 

It said the SIA investment would allow it to reduce its debt-to-assets ratio to 80 per cent from its current 95 per cent.

 

Air China last week said it did not rule out the possibility of merging with other domestic rivals, including China Southern.

 

Last year it agreed to a complicated shareholding arrangement with Cathay Pacific, SIA’s main regional competitor, in which the two companies hold 17.5 per cent stakes in each other.

 

SIA’s investment in CEA would give it access to the fastest-growing aviation market in the world and could enable it to use CEA’s home base of Shanghai as a possible second hub.

 

SIA has suffered disappointing returns from previous investments in Air New Zealand and Virgin Atlantic. However, Stephen Lee, chairman, said the China Eastern investment was different “in that we are going to participate in management”.

 

SIA and Temasek will have three seats on CEA’s 14-member boards and SIA will be involved in CEA’s long-haul routes, marketing and daily operations.

 

But analysts warn it may be hard for SIA to have any real influence on CEA in the short term if Cathay’s experience in dealing with Air China is anything to go by. After more than a year, the two sides are yet to co-operate on anything more than a few code-share flights, according to Air China officials, who appear to resent Cathay’s suggestions on how to improve operations characterised by long delays, poor food and substandard service.

 

Negotiations over the CEA investment began more than a year ago but a final resolution proved difficult because of a disagreement over price.

 

http://www.ft.com/cms/s/0/e32b9ee4-594f-11...0b5df10621.html

[S V Choong 4]

Isn't China Eastern going to join Star Alliance?

[Pieter C. 5]

China Eastern Says Singapore Air Deal Very Likely

 

May 15, 2008

China Eastern Airlines is still in talks to sell a stake to Singapore Airlines and it is very likely the two carriers will complete a deal, China Eastern Chairman Li Fenghua said on Thursday.

 

He gave no specific timetable for an equity deal but said it would have to take a back seat to the more pressing priorities of relief efforts after this week's devastating earthquake in southwest China and preparations for the Beijing Olympic Games in August.

 

In January, China Eastern's minority shareholders rejected its proposal to sell a 24 percent stake to Singapore Air and Singapore state investment agency Temasek.

 

The thumbs-down came after the parent of Air China expressed interest in a tie-up with China Eastern, which the airline rejected.

 

China Eastern is making preparations to open an office in Taiwan in anticipation of the opening of direct flights across the Taiwan strait, Li said.

 

He said the carrier had sent 15 planes and six helicopters to help with rescue work in Sichuan province, where a 7.9 magnitude earthquake on Monday killed 150,000 people and more are feared dead.

 

(Reuters)