1W in talks with China Eastern
Jun 7, 2007 | 8:32 am
#46
Original Poster
FlyerTalk Evangelist
Join Date: Mar 2006
Location: DFW
Programs: AA 1M
Posts: 31,939
Jun 7, 2007 | 9:58 am
#47
A FlyerTalk Posting Legend
Join Date: Dec 2000
Location: Shanghai
Posts: 46,292
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)
Jun 7, 2007 | 10:39 am
#48
Original Poster
FlyerTalk Evangelist
Join Date: Mar 2006
Location: DFW
Programs: AA 1M
Posts: 31,939
Jun 8, 2007 | 5:25 am
#49
FlyerTalk Evangelist
Join Date: May 2001
Location: Huntington Beach, CA
Programs: AA EXP 3 MM; Marriott Bonvoy Lifetime Titanium Elite
Posts: 18,588
Be advosed that non-Chinese entities are not allowed under Chinese law to own a majority stake in an aviation-related business.
Jun 8, 2007 | 9:57 am
#50
A FlyerTalk Posting Legend
Join Date: Dec 2000
Location: Shanghai
Posts: 46,292
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.
Jun 8, 2007 | 11:15 am
#51
FlyerTalk Evangelist
Join Date: May 2001
Location: Huntington Beach, CA
Programs: AA EXP 3 MM; Marriott Bonvoy Lifetime Titanium Elite
Posts: 18,588
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.
Sep 26, 2010 | 9:23 pm
#53
Join Date: Aug 2007
Location: SYD
Programs: |QF LTG|DL Gold|
Posts: 1,784
MU announced 3 months ago that they would be joining SkyTeam some time in 2011...