The bigger they are, the harder they fall

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.

One Response to The bigger they are, the harder they fall

  1. Tristan 1 January, 2009 at 5:00 pm #

    In my view, most of the China airlines did expend themselves too fast without a sustainable business strategic.

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