China Eastern Airlines once again seeks a strategic investor to welcome it onto the world stage

Time has provided clarity for China Eastern Airlines. The failed 2007 bid of Singapore Airlines to purchase a stake in China Eastern Airlines left the Shanghai-based carrier with a sour taste as it lost the chance to find a partial solution to its weak performance and dwindling finances. Although at the time China Eastern threw its support behind the deal, which was derailed by competitors Air China and ultimately Cathay Pacific, in hindsight China Eastern may be glad the agreement did not go through.

Singapore Airlines was buying into China Eastern when it was weak; today China Eastern is stronger and is also more profitable than Singapore Airlines. China Eastern now worries SIA would have gained more than it put in.

These considerations are important as China Eastern continues to seek a strategic investor. China Eastern sees that quality must complement its size and an international partner could best help its internalisation. China Eastern is weary of an Asian airline investing in it but perhaps paradoxically wants an investment to mesh culturally.