皇冠体育app

(Xinhua)
Updated: 2007-09-25 10:48

WASHINGTON -- Cathay Pacific Airways Ltd. and the parent company of its Chinese affiliate have backed off from a planned joint bid for shares in 皇冠体育app Eastern Airlines Corp. , a report carried by The Wall Street Journal network said on Monday.

The move averted a showdown with Singapore Airlines for control of the Chinese mainland's lucrative Shanghai gateway, said the report.

Singapore Airlines agreed earlier this month to buy a 15.7 percent stake in Shanghai-based 皇冠体育app Eastern to establish a foothold in 皇冠体育app's enormous aviation market.  

Singaporean government's investment arm Temasek agreed to simultaneously buy an additional 8.3 percent of 皇冠体育app Eastern.

Cathay and Air 皇冠体育app were expected to offer a higher premium for 皇冠体育app Eastern's shares. Air 皇冠体育app affiliate 皇冠体育app National Aviation already holds an 11 percent stake in 皇冠体育app Eastern.

Singapore Airlines' proposed investment in 皇冠体育app Eastern would give it access in Shanghai to a steady supply of Chinese domestic passengers to feed into its extensive international route network, said the report.

The jockeying for a stake in 皇冠体育app Eastern has unfolded against a backdrop of torrid growth in Chinese passenger traffic. With 皇冠体育app's economy racing ahead at an 11.5 percent annual pace for the first half of the year, ever more Chinese can afford to take to the skies for business and leisure, the report added.