Recovering China Eastern promises February alliance decision

China Eastern Airlines will decide which global alliance to join prior to the Chinese New Year on Feb. 14, according to MD Ma Xulun.

SkyTeam continues to be the favorite, which likely would lead to Shanghai Airlines' withdrawal from Star Alliance. CEA's acquisition of SAL received final approval from the China Securities Regulatory Commission last month (ATWOnline, Dec. 1).

With a 50% share of the Shanghai market, CEA will have a base from which it can explore new destinations that will enhance the airport's status as an international hub, Chairman Liu Shaoyang said. It is considering opening express service from Fujian province and other areas of southeast China that will feed international routes from PVG.

Liu said CEA was CNY1.85 billion ($270.6 million) in the black through the first 10 months of 2009. It earned CNY1.2 billion through the third quarter and "has survived through the most difficult period," he said, while warning that "rapid reforms" are still needed to continue the recovery. The carrier is expected to finish issuing additional shares worth CNY7 billion this month, reducing its debt ratio to 94.7%.