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China Eastern - More Acquisition Talk  
User currently onlineTugger From United States of America, joined Apr 2006, 5428 posts, RR: 8
Posted (6 years 6 months 1 week 6 days 12 hours ago) and read 1993 times:

China Eastern has been in discussions with SQ but recently turned down their offer. Now China Eastern has turned down a higher bid by Air China and that is causing Air China shares to slide.
Talk now is that it is up to Singapore to improve its bid to get them on board.

So what makes China Eastern such a hot property?

Thanks
Tug


I don’t know that I am unafraid to be myself, but it is hard to be somebody else. -W. Shatner
8 replies: All unread, jump to last
 
User currently offlineRyanair!!! From Australia, joined Mar 2002, 4751 posts, RR: 26
Reply 1, posted (6 years 6 months 1 week 6 days 10 hours ago) and read 1954 times:



Quoting Tugger (Thread starter):
So what makes China Eastern such a hot property?

You might want to ask youself where does the airline reside? It is residing among one of the world's LARGEST aviation market. Which right thinking airline would not want a piece of that?



Welcome to my starry one world alliance, a team in the sky!
User currently onlineTugger From United States of America, joined Apr 2006, 5428 posts, RR: 8
Reply 2, posted (6 years 6 months 1 week 6 days 4 hours ago) and read 1827 times:



Quoting Ryanair!!! (Reply 1):
You might want to ask youself where does the airline reside? It is residing among one of the world's LARGEST aviation market. Which right thinking airline would not want a piece of that?

I guess I wasn't very clear. I know the market and that China Eastern is one of the "big three" but there are many airlines in China.
The big three airline groups:
Air China
China Eastern Airlines
China Southern Airlines

Then there are the other major China-based airlines:
Hainan Airlines
Shandong Airlines
Shanghai Airlines
Shenzhen Airlines
Sichuan Airlines
Xiamen Airlines

And China's private carriers:
East Star Airlines
JuneYao Airlines
OK Air
Spring Airlines
United Eagle Airlines

In addition there are the Hong Kong and Macao airlines:
Cathay Pacific Airways - Dragonair
Hong Kong Airlines
Hong Kong Express Airways
Oasis Hong Kong Airlines
Air Macau
Viva Macau

But what makes China Eastern the preferred take over target vs others (say China Southern). Their route structure? Their balance sheet? Political considerations? How badly does Air China want to have China Eastern and conversely, how badly does China Eastern not want to merge with Air China?

Also since A.net loves merger discussions, are there other mergers likely to happen? Would China Eastern merging with SQ lead to other mergers. Will there be an internal consolidation (as opposed to companies outside of China buying Chinese airlines)?

Tug



I don’t know that I am unafraid to be myself, but it is hard to be somebody else. -W. Shatner
User currently offline777way From Pakistan, joined Dec 2005, 5716 posts, RR: 4
Reply 3, posted (6 years 6 months 1 week 6 days 4 hours ago) and read 1821 times:

Will SQ be able to bring visible changes to MU if they get a stake in them, like better corporate image, service standards.

User currently offlineBlueShamu330s From UK - England, joined Sep 2001, 2866 posts, RR: 25
Reply 4, posted (6 years 6 months 1 week 6 days 3 hours ago) and read 1797 times:



Quoting 777way (Reply 3):
Will SQ be able to bring visible changes to MU if they get a stake in them, like better corporate image, service standards.

Please God, I hope so.  Smile

Shamu



So I drive a 4x4. So what?! Tax the a$$ off me for it...oh, you already have... :-(
User currently offlineChinaeastern From China, joined Apr 2004, 348 posts, RR: 0
Reply 5, posted (6 years 6 months 1 week 6 days 3 hours ago) and read 1773 times:



Quoting BlueShamu330s (Reply 4):
Please God, I hope so.

God bless you!!!!!!!!!!

Quoting Tugger (Thread starter):
So what makes China Eastern such a hot property?

MU is based at PVG. SQ has quite significant operations at PVG. anywhere south of the river, SQ can pretty much serve the cities they want and leave the unwanted to MI. PVG would be an ideal connection point to reach anywhere northeast.

In case SQ is interested in SIN-PVG-N.A., MU can provide domestic feed. Notice that 5th freedom rights at PVG is easier to obtain than other ports for pax services.

SQ/MU can go head to head with CX/CA


User currently offlineRyanair!!! From Australia, joined Mar 2002, 4751 posts, RR: 26
Reply 6, posted (6 years 6 months 1 week 5 days 15 hours ago) and read 1653 times:



Quoting Tugger (Reply 2):
But what makes China Eastern the preferred take over target vs others (say China Southern). Their route structure? Their balance sheet? Political considerations? How badly does Air China want to have China Eastern and conversely, how badly does China Eastern not want to merge with Air China?

MU is based in Shanghai Pudong, which is a very high yielding destination in China (after HK, if you want to consider them China). The current management has so far failed to capitalise on that to their advantage with shoddy service and questionable management skills leading to demise in the company's profits. However, what MU can offer SQ would be the myriad of domestic feed into Shanghai that could possibly lead to a trans-Pacific flight. Aside from the A345, SQ's intermediate trans-Pacific transit points are full slots-wise (except HKG) so trying to add some more flights via these cities are near to impossible... so if we want to speculate, MU offers them the chance to while maintaining yields at an acceptable level.

That being said, customer service in China is generally lacking so if MU gets SQ's expertise to clean up their act, it might just be the solution to their problems to change customer's perceptions.



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User currently offlineChiawei From United States of America, joined Nov 2000, 942 posts, RR: 1
Reply 7, posted (6 years 6 months 1 week 5 days 14 hours ago) and read 1647 times:

I for one can tell you how bad MU is.

I had pleasure of flying MU last october from LAX to PVG. And it is by far the worst experience i ever had on a long haul flight with a none US carrier.

The seat cushion on the A346 was so thin, that after 14 hour flight into PVG, my back and a$$ were extremely sore. I could not sit for more than 30 minutes for next 2 days. The flight attendant does not come around during the flight to serve any drinks (although attitude was pretty good). There are no PTV in the A346 economy class, and they were showing some old US movie.

Food was okay. Slightly better than AA's long haul economy meal (this is not saying much).

In fact, i think Chinese carrier in general really has lousy food (better than American) in economy. Service is hit and miss. At least chinese carrier's attendant are much pleasing to the eye.

I learned my lesson. I will take the long way by flying CX out of SFO to HKG and than to PVG. Should have never tried take chinese carrier for long haul.


User currently offlineRyanair!!! From Australia, joined Mar 2002, 4751 posts, RR: 26
Reply 8, posted (6 years 6 months 1 week 5 days 13 hours ago) and read 1607 times:

Looking through a timetable of China Eastern, their service philosophies include CARE, LOYALTY, "QUAITY" and SINCERITY.


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