China Eastern rejects CNAC’s wide-ranging alliance proposal_English_Xinhua
China Eastern rejects CNAC’s wide-ranging alliance proposal

BEIJING, Feb. 26 (Xinhua) — China Eastern Airlines Corp. (CEA)on Tuesday rejected a wide-ranging alliance proposal from China National Aviation Corp. (Group) (CNAC).

The move could close the door for an alliance between the Shanghai-based carrier and Air China, the country’s third- and second- largest airlines, respectively, by fleet size, analysts said.

“Our board of directors has decided not to give further consideration to CNAC’s proposal after prudent and sufficient discussions and advice-seeking from the legal and finance consultants,” CEA said in a statement to the Shanghai Stock Exchange late on Tuesday.

“The company will stick to (the plan) of bringing in a strategic investor to make its main air transport business more competitive,” the statement noted.

“In the whole process of proposal-making and with the communications method, CNAC has never showed any sincerity and deep and thorough planning for our cooperation,” it said.

CEA stated the proposal does not have the legal binding power as any formal offers do and it has huge uncertainty in terms of law and future official approval process.

It added the ultimate purpose of bringing in a strategic investor was to improve corporate management, operation efficiency, profitability and the international competitiveness. “CNAC and the parties it represents will be unable to help us meet the above expectations.”