News
Online travel agency Ctrip to invest in China Eastern Airlines
April 22nd 2016
China’s largest online travel agency, Ctrip, is moving towards a partnership with a former rival, China Eastern Airlines (CEA), with the news that the Shanghai-based carrier is considering Ctrip’s offer to buy up to 10% of the carrier in next 12 months. Read More » The companies this week announced a strategic co-operation agreement that will allow Ctrip to buy A shares issued by CEA that could build into a 10% holding in the carrier within a year and also provide the online travel agency with a seat on the CEA board.
The deal is an about face for CEA, which has accused Qunar, a Ctrip subsidiary, of hosting too many dishonest travel operators on its site. At the same time, CEA chief executive, Ma Xulun, told the South China Morning Post that the carrier would increase its capacity to the U.S. by 50% in 2016. More than three million passengers from China are outbound to the U.S, he said and added CEA hoped to capture as much of this market as possible.
