China Eastern acquires Shanghai Airlines for $1.32 billion

[NM]

From ATW Daily News:

China Eastern Airlines finalized a deal to acquire Shanghai Airlines for CNY9 billion ($1.32 billion) in an effort to gain control of the commercial air travel market in China's largest city.

 

[fortymilliondaggers]

The Chinese aviation industry will consolidate - there are too many airlines at the moment. Expect to see more of these across the country over the next few years.

 

[Evan]

Does anybody else think they paid too much ???
Then again this is China, i guess they also saw the advantage of consolidation (ie control the market if you can buy enough other airlines that are your competition)

 

[fortymilliondaggers]

They've got a lot of aircraft and strong presence in Shanghai, and I thnk Star Alliance membership also has a lot to do with it.

 

[ANstar]

Seems now to make more sense for Air China to move to Oneworld (given they are part owned by CX) and perhaps for China eastern to move to Star now they have Shanghai airlines??

 

[straitman]

The Chinese aviation industry will consolidate - there are too many airlines at the moment. Expect to see more of these across the country over the next few years.

I expect more of these mergers across the world over the next few years for the same reason.

 

[Evan]

Seems now to make more sense for Air China to move to Oneworld (given they are part owned by CX) and perhaps for China eastern to move to Star now they have Shanghai airlines??

Hmm, not till Air China pick up there act and behave like a premium airline !!!