Da ATW Online - http://www.atwonline.com/news/story.html?storyID=13541
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Air China considering Austrian bid
Friday August 1, 2008
Air China is looking at presenting a bid for Star Alliance partner Austrian Airlines in order to establish a foothold in the West.
A CA spokesperson revealed yesterday that the Beijing-based carrier recently sent a senior management and financial adviser of China International Capital Corp. to visit Austrian, which this week recommended that the government move forward with privatization (ATWOnline, July 31). The CA spokesperson would not confirm that the visit was related to a possible bid for OS.
CA Chairman Kong Dong told media at the recent Star meeting in Cairo that he considered acquisition of a stake in OS a possibility. But he said there would be considerable research into potential synergies before a decision was made. "Unless our bid can be conducive to our marketing efforts and enhancing our brand value, we won't do it," he said.
Afterward, the airline clarified Kong's statement, saying he was expressing "friendly concern" for Austrian and that "so far the company's senior management has held no talks, nor has the board received any plan."
Air China operates more international routes than any domestic competitor and has a clear advantage on service to Western countries. It plans to launch a daily Vienna service in October 2009. It currently codeshares on Austrian's daily VIE-PEK flight.
by Katie Cantle
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Air China considering Austrian bid
Friday August 1, 2008
Air China is looking at presenting a bid for Star Alliance partner Austrian Airlines in order to establish a foothold in the West.
A CA spokesperson revealed yesterday that the Beijing-based carrier recently sent a senior management and financial adviser of China International Capital Corp. to visit Austrian, which this week recommended that the government move forward with privatization (ATWOnline, July 31). The CA spokesperson would not confirm that the visit was related to a possible bid for OS.
CA Chairman Kong Dong told media at the recent Star meeting in Cairo that he considered acquisition of a stake in OS a possibility. But he said there would be considerable research into potential synergies before a decision was made. "Unless our bid can be conducive to our marketing efforts and enhancing our brand value, we won't do it," he said.
Afterward, the airline clarified Kong's statement, saying he was expressing "friendly concern" for Austrian and that "so far the company's senior management has held no talks, nor has the board received any plan."
Air China operates more international routes than any domestic competitor and has a clear advantage on service to Western countries. It plans to launch a daily Vienna service in October 2009. It currently codeshares on Austrian's daily VIE-PEK flight.
by Katie Cantle