China has been fortunate enough to first have an airline as dedicated as china airlines, and then another dedicated group in the form of china eastern airlines.
The establishment of another airline was not thought of until the early 1980s, when the Government of China was indeed observing the constant losses being faced by the china airlines. And this loss was happening in spite of the fact that china airlines had not experimented or even expended to a risky extent and was working in quite a docile manner. However the losses were there nevertheless, which gave birth to the requirement of an independent airline started on fundamentals entirely different to that of china airlines itself. This was the birth of china eastern airline.
Eventually the china eastern airlines left the china airlines far behind. It was not limited to passengers only but started the china cargo lines as well, in a joint venture with various industrialists. What china airlines had been unable to comprehend, china eastern airlines grasped on early in their tenure. The china airlines had never thought of letting en external power into their shares, and truth fully speaking, their shares were not worth much reconsideration either or else some one would have made an irrefutable offer that china airlines would have taken up. This is the reason why the first thing china eastern airline did after coming into business was offering up its shares in the foreign market. Eventually the Government owned a total of 34 % shares in the airlines, making it the largest percentage holder partner. A bigger share sale came later in 2006, when the china eastern airlines sold quit a chunk of remainder shares to big investors including emirates, Singapore airways and Japan air. Later the shares went on to Singapore Airlines as well as Cathay pacific.
Unfortunately this was a hard time for the china eastern airline as the Singapore airlines and the Cathay Pacific had entirely different views on all matter. Singapore airlines had plans of introducing route to hong kong through china eastern airline. However since it was occupying quite a bit of shares, it took some time to settle a lot of issues, as a result, the Singapore airlines unintentionally exhibited some tardiness. This opportunity was immediately seized by the Cathay Pacific which voted to stop the deal, in concord with china airlines, which Incidently had a few shares in china eastern airlines as well. Thankfully in time, Cathay Pacific realized its mistake as well as the sincere intentions of the Singapore Airlines, resulting in with drawl of their motion against the deal.
Still things did not run as smoothly for china eastern airlines. In its attempt to run things as differently as possible from china airlines, it committed some grave blunders. The offer by Singapore airlines was never taken because china airlines offered to buy the 20+ % stake at higher rates and the decision went in favor of china airlines. Now china eastern airline is awaiting the decision of joining the Star Alliance group, which is indeed the only good thing that came out of this deal. China eastern airlines is doing well for itself, running a cargo subsidiary and 3 further airline groups under the china eastern airline banner.
China eastern airlines interestingly is also one of the very few airlines to have code share agreements with Star Alliance, One World and Sky Group, all three of them. Aptly, it’s frequent flyer program is called the eastern miles and offer a number of perks to the frequent flyers, giving them an incentive to fly with china eastern airlines again and again.
