Ok ok it has been far too long since a posting has gone up on the Asian Skies blog (sole-contributor-to-date Siva is on holiday) so time to change that. I arrived at work this morning to learn that China Eastern Airlines will now be getting $1 billion in government aid, rather than $437 million as earlier planned. You can find the details here.
It is said too often, but my what a difference a year makes. Who would have thought 12 months ago that China's government would be forced to bail out several of its fast-growing airlines? This story is certainly not over though - expect the bailouts to come with strings attached. A fresh wave of government-ordered airline consolidation is imminent.
It is said too often, but my what a difference a year makes. Who would have thought 12 months ago that China's government would be forced to bail out several of its fast-growing airlines? This story is certainly not over though - expect the bailouts to come with strings attached. A fresh wave of government-ordered airline consolidation is imminent.
on January 1, 2009 5:00 PM | Reply
In my view, most of the China airlines did expend themselves too fast without a sustainable business strategic.