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          BIZCHINA> Top Biz News
          China Eastern to sell Wuhan subsidiary to China Southern
          By Lu Haoting (chinadaily.com.cn)
          Updated: 2009-03-23 10:49

          China Eastern Airlines plans to sell its subsidiary in Central China's Wuhan to its rival China Southern Airlines, The Beijing News reported on Monday.

          Related readings:
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          China Eastern to sell Wuhan subsidiary to China Southern China Eastern bets on lower fares to fly high
          China Eastern to sell Wuhan subsidiary to China Southern China Eastern to stem fuel hedging losses
          China Eastern to sell Wuhan subsidiary to China Southern China Southern invests in northeastern hub

          The Wuhan subsidiary sustained the biggest loss - 1.6 billion yuan - last year among all China Eastern's subsidiaries.

          The Beijing-based newspaper cited an unnamed source from China Southern as saying that the two carriers are in negotiations for the purchase deal.

          Guangzhou-based China Southern holds the largest market share in Wuhan with 40 percent, while China Eastern holds 18 percent and Air China, the nation's flagship carrier, has 5 percent.

          Beleaguered China Eastern has been cutting unprofitable routes amid the deepening economic crisis.


          (For more biz stories, please visit Industries)

           

           

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