China Eastern Airlines (MU, Shanghai Hongqiao) has denied reports in the Chinese press linking it to the proposed sale of its wholly-owned Shanghai Airlines (FM, Shanghai Hongqiao) unit.
The reports had quoted people familiar with the discussions as saying the carrier had approached Beijing about the disposal which would have seen Shanghai Airlines develop into an independent operator.
However, in a statement to the Shanghai Stock Exchange (SSE) on Friday, July 28, China Eastern flatly rejected the claims adding that "it has never had any plan to dispose of its equity interest in Shanghai Airlines".
"The information reported in those media reports is therefore inaccurate and incorrect," it said.
China Eastern completed its acquisition and takeover of Shanghai Airlines in February 2010.
