China Eastern Airlines is still keen to form a strategic partnership with Singapore Airlines, the Chinese carrier said yesterday.
"Singapore Airlines is still our ideal partner and we will not consider the offer from China National Aviation Corp (CNAC)," Li Fenghua, president and chairman of China Eastern and CPPCC member, said.
China Eastern's proposal to sell a 24 percent stake to Singapore Airlines and Temasek, the Singapore government's investment arm, at HK$3.8 per share was rejected at a shareholders' meeting in January due to CNAC's counteroffer. CNAC, the parent company of Air China, offered no less than HK$5 per share.
Li wouldn't say whether Singapore Airlines will raise its offer.
China Eastern last week said CNAC's offer could not help it to gain access to world-class management know-how or to improve its operational efficiency and profitability.
The carrier recently formed a comprehensive tie-up with China Southern Airlines. The two carriers will cooperate on aircraft purchasing, ground services, marketing, route networks and frequent flyer programs. The two are rumored to be seeking further cooperation to counter Air China's expansion.
But Li yesterday denied the rumor, saying the two carriers "will not seek a stake sale or share swap".
(China Daily March 6, 2008)
