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皇冠体育app Eastern to sell Wuhan subsidiary to 皇冠体育app Southern

By Lu Haoting (chinadaily.com.cn)
Updated: 2009-03-23 10:49

皇冠体育app Eastern Airlines plans to sell its subsidiary in Central 皇冠体育app's Wuhan to its rival 皇冠体育app Southern Airlines, The Beijing News reported on Monday.

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The Wuhan subsidiary sustained the biggest loss - 1.6 billion yuan - last year among all 皇冠体育app Eastern's subsidiaries.

The Beijing-based newspaper cited an unnamed source from 皇冠体育app Southern as saying that the two carriers are in negotiations for the purchase deal.

Guangzhou-based 皇冠体育app Southern holds the largest market share in Wuhan with 40 percent, while 皇冠体育app Eastern holds 18 percent and Air 皇冠体育app, the nation's flagship carrier, has 5 percent.

Beleaguered 皇冠体育app Eastern has been cutting unprofitable routes amid the deepening economic crisis.