Cathay Pacific Airways' hopes of buying a minority stake in China Eastern Airlines will be dashed, according to the Shanghai-based carrier.
'We understand that [Cathay] wishes [to take a minority stake in us],' China Eastern spokesman Daniel Song said.
'But our management will not consider such an offer at this point.' The proposal by Cathay is seen as a move to build closer ties with China Eastern, to secure a long-term mainland partner.
It would be a second rebuff for Cathay, hard on the heels of Dragonair, which is an affiliate, declining an offer to join the Cathay-led Oneworld alliance. Dragonair said it wanted to compete rather than co-operate with Cathay.
Dragonair, which is 43 per cent held by China National Aviation Corp, is the only Hong Kong-based airline to service the mainland, which include the sole rights for the lucrative Hong Kong to Shanghai and Beijing routes.
Cathay and its Oneworld partners will turn their sights to other potential partners in the fast-growing mainland aviation market.
Cathay vice-chairman David Turnbull previously refused to confirm rumours that Cathay was seeking to buy a 10 per cent stake in China Eastern.
'Rumours are rumours,' Mr Turnbull said.
China Eastern, meanwhile, said it would be premature for it to join an alliance such as Oneworld, but would nonetheless consider any such offers this year.
'There are some opportunity costs involved in joining any particular alliance,' Mr Song said, adding that China Eastern wanted to first build up its domestic market share and 'upgrade its hardware'.
The carrier already has some code-share deals with members of rival alliances, which would have to be scrapped if it was to join an alliance.
ncG1vNJzZmivp6x7tK%2FMqWWcp51krrPAyJyjnmdjZn96f5ZomqGhnpZ6pq3SrZyrpl2otbC706xknaeno3qkrdOhmLKrXZe2pXnAnKiuoaKaeqm7y52gp58%3D