Shanghai: Changi North? SIA-China Eastern deal could be pivotal
Fasten your seat belts – Singapore Inc is moving into
Shanghai. The parties are expected to announce this week that Singapore’s
government investment arm, Temasek Holdings, is teaming with Singapore Airlines
(SIA) to take a 25% stake in China Eastern Airlines. While there are risks for
SIA (China Eastern is still a standout loss-making airline in a region where
profitability has been prevalent and has a long way to go to restructure into
an efficient operation), there are also major opportunities.
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