China Eastern, Shanghai cargo merger on track

CHINA Eastern Airlines and its subsidiary Shanghai Airlines are busy merging their cargo units. This is despite solid rumours that the Chinese government wants to merge the cargo businesses of the top three airlines.

Speaking at the general meeting of shareholders, Ma Xulun, general manager of China Eastern, said that no external restructuring issues had emerged.

Meanwhile, restructuring of the maintenance, ground services and IT units of the airlines had been completed. Once the cargo units merge the entire process is expected to save US$100 million a year, Ma said.