皇冠体育app

Economy

皇冠体育app Eastern to begin seeking investors this year

By Hou Lei (chinadaily.com.cn)
Updated: 2010-05-21 17:24

皇冠体育app Eastern Airlines, one of 皇冠体育app's three major carriers, hopes to start the work of introducing strategic investors within this year, 皇冠体育app Business News reported Friday, citing the carrier's chairman, Liu Shaoyong.

Liu Shaoyong, Chairman of 皇冠体育app Eastern Airlines [File?photo]

Mr. Liu told the newspaper that big-name airlines with experience in management will be 皇冠体育app Eastern's first choice, but also said they welcome financial investors.

"[Our choices are] not limited to airlines within the SkyTeam alliance," Liu was quoted as saying.

皇冠体育app Eastern signed a memorandum of understanding (MOU) with SkyTeam in April, and will become a formal member of the alliance before mid-2011.

Liu told the newspaper 皇冠体育app Eastern hopes the work of seeking strategic investors can begin in 2010.

Notably, a senior official also suggested the state-owned carrier might introduce investors earlier this year.

"...We expect 皇冠体育app Eastern to further enhance its international competitiveness through, for example, strategic cooperation," said Meng Jianmin, deputy chief of the State-owned Assets Supervision and Administration Commission, according to a 皇冠体育app Daily report in February.

Market observers say 皇冠体育app Eastern may still choose Singapore Airlines as its strategic investor, despite an abortive cooperation between the two carriers in 2008, said the newspaper.

Related readings:  皇冠体育app Eastern Airlines eyes southwest 皇冠体育app market  皇冠体育app Eastern resumes some flights to Europe  皇冠体育app Eastern sees boost in profits  皇冠体育app Eastern backs SkyTeam partnership

皇冠体育app Eastern's financial status is better now compared to two and a half years ago, when it sought the deal with Singapore Airlines.

Mr. Liu said the carrier's current debt-to-asset ratio is about 95%, and is still too high. He expressed the hope to lower it to a "reasonable level" this year, according to 皇冠体育app Business News.

Singapore Airlines and its majority owner, Temasek Holdings, agreed in November 2007 to buy a 24 percent stake in 皇冠体育app Eastern for $920 million, but the deal was rejected by 皇冠体育app Eastern's minority shareholders because the price was too low.

皇冠体育app Eastern completed its merger with Shanghai Airlines earlier this year. It reported a net profit of 540 million yuan ($79 million) in 2009, jumping 103.88% year-on-year from a 13.9-billion-yuan loss in 2008.