On September 24, Air China Limited (Air China) announced that their plan to acquire China Eastern Airlines Corporation Limited (China Eastern) would be on hold for the next three months.

A day later, a source inside China Eastern told Caijing Magazine that China Eastern is studying Air China's announcement in order to find ways to fight against the latter's future strategy.

The source said that Air China's announcement indicated that the company would draw up better acquisition plan and offer higher acquisition prices in order to put pressure on China Eastern's small shareholders. The source viewed this as an intentional step, reflecting that Air China has not abandoned its efforts to stop Singapore Airlines from buying into China Eastern.

Most insiders in the civil aviation industry agree that Air China will continue cooperating with Cathay Pacific Airways Limited to bid for China Eastern.

For more details, please read the full story in Chinese. (http://www.caijing.com.cn/newcn/home/todayspec/2007-09-25/31529.shtml)

(China.org.cn September 26, 2007)