China Eastern In Merger Review With Shanghai Airlines

From Financial Times:

China Eastern Airlines admitted yesterday that a merger with Shanhai Airlines, its smaller rival carrier in eastern China, is being actively considered.

Cao Jianxiong, president of China Eastern, said the government entities that control both airlines had held talks about a merger, which would increase the group’s dominant position in the Shanghai airline hub.

Mr Cao added that the Shanghai-based group was still open to future investment by Singapore Airlines, after an earlier agreement to buy a stake in the Chinese carrier expired last month.

The comments were the first public admission by either company that a merger was being discussed, two months after talks were first reported in the media.