Singapore Airlines invests in East China Airlines
Published: 25/05/08
Singapore Airlines are branching out in the world as it announces that it is to buy a 24 percent stake in China Eastern Airlines. Singapore Airlines seems to have made the move so that it has a say in the second largest aviation market in the world. It has paid a huge USD926 million for the stake, but still awaits final approval from the board of the Chinese airline.
One of the main reasons the Singapore airline has bought in to the market, is to have a base in China as well as trying to challenge Cathay Pacific on its flights to Shanghai packages. The deal signifies a very positive move for investors and shows that this was an opportunity not to be missed for an airline that is desperate to enter the Chinese market.