Share deal for China Eastern

PLANNED share transactions of China Eastern Airlines, one of the country's largest airlines, are still under negotiation, according to a reliable source.

"Not everything is decided yet, but we do have trading negotiations with our partners," one of the company's board members, who asked to be anonymous, said.

Speculation prevailed that the company planned to sell its shares in China Cargo Aviation Co to Taiwan-based China Airlines and buy a stake in the Sichuan-based China Greatwall Airlines Co (CGAC), as part of its planned business restructuring.

The source confirmed the deal, but added that the company has more contacts with several other interested partners.

"But not all the plans have been finalized for several reasons, mainly economic ones," the official said.

He said the company is now making evaluations of CGAC's assets, as part of the purchase plan.

China's airlines have been long strapped by high costs and low efficiency because of their small size and excess staff.

"Personally, I am optimistic about the deal because it can establish strategic co-operative partnerships between the various sides," the official said, who predicted the co-operation will reduce the company's costs and improve efficiency.