Shanghai Airlines hopes to maintain its membership in Star Alliance even after its merger with China Eastern Airlines, which most likely will join SkyTeam, Chairman Zhou Chi said. He noted that Shanghai needs to discuss the matter with Star airlines. "Also, whether we can maintain it or not will be up to which global airline alliance CEA joins," he said. CEA Chairman Liu Shaoyong has said internally that the carrier prefers SkyTeam, which already includes China Southern Airlines. CEA was scheduled to sign an agreement with SkyTeam last month, but it was postponed because it is "busy with merger issues with SAL."
After the merger, SAL is expected to become a wholly owned subsidiary of CEA but maintain its brand. "It is important for us to operate independently. Our relationship with CEA will be just like Cathay Pacific and Dragonair," Zhou revealed. "We never expected to expand our business by relying on the merger with CEA, but the merger will produce synergies and will help build Shanghai as an international aviation hub." The carriers remain in negotiations and the specific merger plan is expected to come out this month. Zhou emphasized that the merger is being pushed by Beijing and led by CEA. "The whole merger process will have to take about 4-5 months to complete," he said.
ATWOnline
After the merger, SAL is expected to become a wholly owned subsidiary of CEA but maintain its brand. "It is important for us to operate independently. Our relationship with CEA will be just like Cathay Pacific and Dragonair," Zhou revealed. "We never expected to expand our business by relying on the merger with CEA, but the merger will produce synergies and will help build Shanghai as an international aviation hub." The carriers remain in negotiations and the specific merger plan is expected to come out this month. Zhou emphasized that the merger is being pushed by Beijing and led by CEA. "The whole merger process will have to take about 4-5 months to complete," he said.
ATWOnline
