China Eastern Airlines Corp. will continue seeking strategic investors to make its air transport business more competitive, said the company's vice president Li Jun on Monday.
Li, a member of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC), is in Beijing to attend the annual session of the top political advisory body.
"Our goal remains unchanged. China Eastern is persistent in bringing in strategic investors to upgrade corporate management, improve capital structure and make the company more competitive," he said in an interview with Xinhua shortly before the CPPCC session opened on Monday afternoon.
"It's an evitable option that goes in line with the development trend and requirements of domestic aviation industry," he said.
China Eastern is actively pursuing cooperation opportunities with Shanghai Airlines and Eva Airways Corp. of Taiwan, he added.
The company rejected a wide-ranging alliance proposal from China National Aviation Corp. (Group) on Feb. 26, a move analysts said could close the door for an alliance between the Shanghai-based carrier and Air China, the country's third and second largest airlines, respectively, by fleet size.
On Jan. 8, China National Aviation Corp. successfully blocked China Eastern's proposed sale of 1.88 billion H shares, or a 24 percent stake, to Singapore Airlines and Lentor Investments, a unit of Singapore government investment arm Temasek Holdings.
The recaptilization of China Eastern has caused widespread attention and speculation in China and abroad since it signed a preliminary deal with the Singapore side last September.
(Xinhua News Agency March 4, 2008)
