Well that relationship is only 10%, not enough to influence shareholders. I know SQ will have only 26%, but its more than 10% and is a decent size.

My question again is, what possibly entice SQ to use its 26% voice to derail MU's dreams of entering an alliance that will allow it to access more customers?

BTW, the idea that SQ could draw MU to *A and push CA/FM to OW is laughable. Both sets of (alliance) wheels have been in motion for a long time and the ends are near.

Following are additional relevant points that may be obvious:

-CA and FM are a package deal
-CA/FM and MU will not join the same alliance (too much rivaly at stake)
-CA likes *A because it provides the best (by far) Beijing feed of the alliances
-*A likes PEK (and CA) because it serves as a gateway to lots and lots of places in China (maybe 10x PVG; I'm not counting Hongqiao)

I didn't say that. But I get your point in that SQ wouldn't oppose MU's entry to 1W.

Be advosed that non-Chinese entities are not allowed under Chinese law to own a majority stake in an aviation-related business.

Yeah, I think the current limit is 25%, but there are no doubt some extralegal ways around that as well (check out the chinese-chinese-foreign jv structures that foreign telcos used during the late 90s OR CX's capitalization structure that gives Swire control in spite of its dilluted position). It's a shame that the aviation sector wasn't better addressed during ~2001 WTO. I would guess the reason that member countries didn't push harder in this arena has to do with the fact that many them are equally protectionistic.

In our sector of the aviation industry, foreign entities can own 49%. Our JVs have 49% ownership with a right to buy an additional 2% should the law change.

Update
 

I know this is an old thread, but any updates on China Eastern joining OW.
Their codeshare w/AA at this point and looking for something better.
Thx

MU announced 3 months ago that they would be joining SkyTeam some time in 2011...

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