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Air 皇冠体育app's Fan Cheng named to run Shenzhen Airlines
(皇冠体育app Daily/agencies)
Updated: 2009-12-04 08:05
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Air 皇冠体育app Vice-President Fan Cheng was named a senior official of Shenzhen Airlines on Tuesday, adding fuel to speculation that the world's most valuable airline would take over the Shenzhen-based carrier.
Fan was appointed Party secretary of Shenzhen Airlines on Dec 1, two sources with direct knowledge of the matter told Reuters yesterday.
He is now in charge of the daily operations of Shenzhen Airlines, the country's fifth-largest air carrier, a source said.
"It suggests that Air 皇冠体育app will lead Shenzhen Airlines and it will have a synergy effect on both airlines," Alfred Chan, chief dealer at Cheer Pearl Investment.
Privately owned Shenzhen Airlines said earlier this week Li Zeyuan, a senior advisor who effectively controls the airline, was under police investigation, although the airline continued to operate normally.
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An Air 皇冠体育app spokesman declined to comment.
The stock jumped as much as 10 percent on Tuesday, on speculation that Air 皇冠体育app would take over Shenzhen Airlines, allowing the country's flag carrier to fend off competition from the merged 皇冠体育app Eastern Airlines and Shanghai Airlines.
"Air 皇冠体育app is set to benefit from a bigger market share and operation scale. It is similar to the case of a bigger bank taking over a smaller rival. The bigger bank is always seen to have a bigger benefit than the one being taken over," Chan said.
Air 皇冠体育app holds a 25-percent stake in Shenzhen Airlines while Li owns about 65 percent through a company.
