14th Jan 2008
By Bradley Perrett
Air China is poised to become the world’s sixth-largest airline, outranking Northwest Airlines and British Airways, as its parent prepares to bid for control of struggling China Eastern.
The Shanghai-based airline’s managers wanted Singapore Airlines to recapitalize the company and lend the operational expertise needed to turn it around. Protracted negotiations in 2006 and 2007 finally led to an agreement for the Singaporeans to invest $900 million in China Eastern. Although the deal was subject to confirmation by minority shareholders, it was endorsed by the central government.
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