China Eastern's Management Shakeup--by Kenneth Tan From Shanghaiist
China Eastern's chairman Li Fenghua (李丰华) has been replaced by Liu Shaoyong (刘绍勇), chairman of rival China Southern Airlines in what's been described as a "government-orchestrated industry shake-up". There is no news on where Li Fenghua is off to next but we're curious because this was the guy that had earlier bitterly vowed that China Eastern would "never consider Air China as a strategic investor" after Air China blocked Singapore Airline's proposed HK$7 billion bid for a 24% stake in China Eastern. The management shakeup has piqued the interest of the Chinese business press. Some have speculated that Li is moving on to some new position in the State Council but this remains quite unlikely. As an anonymous insider revealed to the Securities Daily 《证券日报》, Li presided over China Eastern's worst performance ever, and bears some responsibility for losses of up to RMB5 billion in fuel-hedging. For that, Li may be sent off to "idle" at some work unit for some time before being "audited and reviewed" for his performance.
China Eastern's chairman Li Fenghua (李丰华) has been replaced by Liu Shaoyong (刘绍勇), chairman of rival China Southern Airlines in what's been described as a "government-orchestrated industry shake-up". There is no news on where Li Fenghua is off to next but we're curious because this was the guy that had earlier bitterly vowed that China Eastern would "never consider Air China as a strategic investor" after Air China blocked Singapore Airline's proposed HK$7 billion bid for a 24% stake in China Eastern. The management shakeup has piqued the interest of the Chinese business press. Some have speculated that Li is moving on to some new position in the State Council but this remains quite unlikely. As an anonymous insider revealed to the Securities Daily 《证券日报》, Li presided over China Eastern's worst performance ever, and bears some responsibility for losses of up to RMB5 billion in fuel-hedging. For that, Li may be sent off to "idle" at some work unit for some time before being "audited and reviewed" for his performance.
China Eastern Set To Get Bigger Aid Package--by Nicolas Lonides From Flightblogger
China Eastern Airlines look set to get more financial aid fromm the Chinese Government.
The case-strapped Shanghai-based carrier announced earlier this month that it was getting a 3 billion yuan(437million dollars) cash injection from the Government through its unlisted state-owned parent company. It said at the time that it would be selling new share to its parent,which would increase its stake to 68.2% from 59.7%.
Since then there have been reports in China that China Eastern may seek more aid and the airline says now in a stock exchange filling that its parent comany"intends to make material adjustments" to the previously announced share purchase plan. Its shares have been suspended from trading on the Shanghai Stock Exchange until 30 December.
State-run meadia reports say China Eastern may get a 6 billion yuan cash insection,or twic as much aid as originally promised.
China Eastern,like most Chinese carriers,has been struggling this year as costs have risen and demand has fallen. It is currently being prepared for a possible merger with smaller Shanghai Airlines.
Shanghai Airlines is also seeking financial aid from the Government. Like China Eastern,China Southern Airlines and Hainan Airlines have been promised aid packages.
China Eastern Airlines look set to get more financial aid fromm the Chinese Government.
The case-strapped Shanghai-based carrier announced earlier this month that it was getting a 3 billion yuan(437million dollars) cash injection from the Government through its unlisted state-owned parent company. It said at the time that it would be selling new share to its parent,which would increase its stake to 68.2% from 59.7%.
Since then there have been reports in China that China Eastern may seek more aid and the airline says now in a stock exchange filling that its parent comany"intends to make material adjustments" to the previously announced share purchase plan. Its shares have been suspended from trading on the Shanghai Stock Exchange until 30 December.
State-run meadia reports say China Eastern may get a 6 billion yuan cash insection,or twic as much aid as originally promised.
China Eastern,like most Chinese carriers,has been struggling this year as costs have risen and demand has fallen. It is currently being prepared for a possible merger with smaller Shanghai Airlines.
Shanghai Airlines is also seeking financial aid from the Government. Like China Eastern,China Southern Airlines and Hainan Airlines have been promised aid packages.
Forecast:We will put our eyes on the Airbus 350 and the regional jet in next "Aero-Thurseday".So don't go far away!
