SIA has moved on from China Eastern love affair

SIA A380

China Eastern Airlines is reportedly fluttering its eyes at Singapore Airlines once again, which is a bit rich after the abrupt way in which SIA’s advances were spurned the last time around.

In any case, SIA does not appear to be keen now and that is hardly surprising. It has problems of its own in the current economic crisis, and needs to work out how to arrest its falling traffic figures and cut costs. In the foreseeable future, fixing those issues will be its priority.

China remains an important market for any ambitious Asia Pacific airline, but there are simply too many barriers to entry – the biggest of which is its government itself. Without Beijing’s blessings, which SIA failed to get the last time, a tie-up with a Chinese airline is a no-go.

SIA could eventually enter into talks once again with a Chinese airline, but that is not going to happen any time soon. And, in any case, that may not necessarily be with China Eastern. SIA, it appears, has hardened its heart and moved on.


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