18 February 2008

SIA backs off China Eastern bid

SINGAPORE - Singapore Airlines says it has no plans to renew its unsuccessful bid for China Eastern Airlines.

"We have no plans at the moment," chief executive Chew Choon Seng told reporters on the sidelines of the Aviation Leadership Summit in Singapore.

Chew said Singapore Airlines remains interested in the region's key growth markets such as China and India, but added that the company was planning for the possibility that an economic slowdown would impact air traffic.

"Given the state of the world financial markets at the moment, there are other things that engage our attention, such as planning for contingencies," Chew said.

"The aviation industry tends to reflect the state of the economies around the world, so there will be some (impact) on demand for air travel," he said.

A bid by Singapore Airlines for a stake in China's third-largest carrier was rejected in early January by China Eastern's shareholders.

China Eastern wanted the tie-up, which would have brought the struggling carrier foreign expertise.

But shareholders voted it down after rival Air China launched an unusual public lobbying campaign, promising more money in a future bid.

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