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Shanghai Airlines merges into China Eastern

(Xinhua)
Updated: 2009-06-30 20:18

SHANGHAI: Shanghai Airlines said Tuesday it would become a wholly-owned subsidiary of China Eastern Airlines and retain its brand.

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Shanghai Airlines Chairman Zhou Chi made the remarks on the tie-up between the two Shanghai-based carriers at a shareholders meeting.

Shanghai Airlines would operate independently after the merger with China Eastern Airlines, one of China's three largest carriers, Zhou said.

Shanghai Airlines will retain its brand and existing routes, he said.

A detailed plan for the merger would be publicized in about a month from the suspension of the stocks trading, Zhou said, adding the transfer of shares will take about four to five months.

China Eastern and Shanghai Airlines shares have been suspended from trading since June 8 while waiting for the merger talks. China Eastern is listed in Hong Kong and Shanghai and Shanghai Airlines is listed in Shanghai.