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http://atwonline.com/

Delta to buy 3.55% stake in China Eastern for

$450 million
Atlanta-based Delta Air Lines has agreed to invest $450 million to acquire a
3.55% stake in Shanghai-based China Eastern Airlines, and the SkyTeam
members said they will launch a commercial cooperation plan.
In comments posted on Deltas website, Delta SVP-Asia Pacific Vinay Dube
said, Delta has nearly tripled the size of its China network in the past five
years. Pairing up with China Eastern increases our reach and further
cements our commitment to the market and to our customers who travel
between China and the US. China Eastern is the hub carrier in the leading
Chinese business market, Shanghai, so this is a great opportunity to build a
profitable, enduring business model.
China Eastern CEO Shaoyong Liu said in a statement, The cooperation of
the parties is based on a global vision and joint strategic blueprint. The
parties will take advantage of their respective route networks, flight services,
relevant businesses and advantageous resources to fully connect the worlds
two top economies as well as two top air transportation markets.
Dube added, Our $450 million investment in China Eastern is only a part of
our partnership. While the investment results in a 3.55% stake in China
Eastern and an observer seat on the China Eastern board of directors, the
true value in this agreement comes from our shared vision to build a longterm, profitable partnership by creating a world-class, customer-focused
offering, and be the most successful franchise in the growing US-China
market.
China Eastern and its subsidiary Shanghai Airlines codeshare with Delta on
30 domestic US routes, 43 domestic Chinese routes and seven China-US
transpacific routes. China Eastern operates 35 weekly Boeing 777-300ER
flights from Shanghai to Los Angeles, New York, San Francisco and
Honolulu. Delta operates 28 weekly flights to Shanghai, Beijing and Hong
Kong from Seattle and Detroit. Delta recently moved to Terminal 1 at
Shanghai Pudong Airport, co-locating with China Eastern and Shanghai
Airlines.
Delta said its goal to be the most Chinese-friendly US airline.

http://www.avitrader.com/

Thai Airways reducing staff and ending flights to

the US
Since seizing power back in 2014 the Thai military government has
been looking to make financial cutbacks and reform state-run
organizations. As a consequence the countrys flag carrying airline,
Thai Airways, is undergoing a number of changes with the aim of
reducing running costs and capacity by 20% over the next two years.
One of the measures will see 1,401 jobs go through voluntary
retirement this year alone, a figure which does not include those who
will also be reaching the age of retirement. The airline has set a
budget saving of THB5.3 billion (USD$151.9million) for the voluntary
retirement scheme.
The airline will also cease flying its unprofitable route to Los Angeles
in October which, after the termination of similarly unprofitable flights
to New York in 2008, will see an end to all flights to the US.
Combined with ending of flights to Rome from Bangkok, the airline
hopes to save THB100 million ($US2.9million) annually. However on
the up side, the carrier will be doubling its flights to twice daily from
Bangkok to London and Frankfurt.
Thai Airways is hoping to cut capacity by 15 percent for the second
half of 2015 and the suspension of these loss-making flights will
reduce capacity by 5% according to the airways President,
Charumporn Jotikasthira, who also said that Its normal that we have
to cut costs and adjust flights to suit changing situation, adding that
Thai Airways is aiming to reduce operating costs by up to THB9
billion (US$261million) this year.
The airline currently has fifty low-return or loss-making routes, but
transferring three routes, Hyderabad in India, Changsha in China and
Luang Prabang in Laos, to its Thai Smile mid-range unit may well
help the carrier meet expectations of breaking even at the end of the
year, though there would then be additional restructuring costs to take
into account.