China Eastern seeks alliance with Air France-KLM, Virgin Blue slumps on Godfrey's last day
China Eastern Airlines is seeking to create a revenue and cost sharing venture with Air France-KLM on the Shanghai-Paris and Shanghai-Amsterdam routes, according to a report in the People's Daily.
China Eastern last month announced plans to join SkyTeam (of which Air France-KLM was a founding member) in 2011. Air France-KLM stated it may also seek cooperation in the freight sector with China Eastern Airlines. China Southern (also a SkyTeam member) cooperates with Air France-KLM on Beijing-Amsterdam passenger services.
China Southern had planned to launch a cargo JV with Air France-KLM, but shelved the plan in late 2008 due to the global recession. A China Southern spokesman stated in Apr-2010 that "Air France KLM is not our only choice, we are also negotiating with other carriers as well."
China Eastern's shares slumped 6.9% on Friday, China Southern fell 2.4% and Air China 5.0%.
Elsewhere, Virgin Blue declined 5.8% on the last day of Brett Godfrey's tenure as CEO. Incoming CEO, John Borghetti is set to receive a remuneration package worth up to AUD3.5 million p/a.
Asia Pacific selected airlines daily share price movements (% change): 07-May-2010
Source: Centre for Asia Pacific Aviation & Reuters