SIA approved to buy into China Eastern

London
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This story is sourced from Flight International
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Singapore Airlines and China Eastern Airlines were due to unveil a deal on 2 September in which SIA and its parent, Temasek Holdings, are to jointly buy a 25% stake in China Eastern.

This follows China's State Council reportedly approving the Singaporeans proposal to buy a strategic stake in the airline and the deal's earlier approval from four government agencies. State Council approval had been the last hurdle.

The Chinese carrier's shares have been suspended from trade in Hong Kong since 22 May while approval had been sought. SIA and Temasek have been tight-lipped about the deal, but reports have suggested the two jointly plan to buy 25%.

The Shanghai-headquartered carrier is one of China's top three airline groups, but in recent times has been suffering financially and, unlike Air China and China Southern Airlines, it has failed to commit to joining a multilateral airline alliance. Temasek Holdings is the Singapore government's investment company.