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BIZCHINA> Top Biz News
China Eastern to sell Wuhan subsidiary to China Southern
By Lu Haoting (chinadaily.com.cn)
Updated: 2009-03-23 10:49

China Eastern Airlines plans to sell its subsidiary in Central China's Wuhan to its rival China Southern Airlines, The Beijing News reported on Monday.

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The Wuhan subsidiary sustained the biggest loss - 1.6 billion yuan - last year among all China Eastern's subsidiaries.

The Beijing-based newspaper cited an unnamed source from China Southern as saying that the two carriers are in negotiations for the purchase deal.

Guangzhou-based China Southern holds the largest market share in Wuhan with 40 percent, while China Eastern holds 18 percent and Air China, the nation's flagship carrier, has 5 percent.

Beleaguered China Eastern has been cutting unprofitable routes amid the deepening economic crisis.


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