China Eastern

This is a great idea - it looks like it is moving forward despite objections from China Air.

The partnership between China Eastern Airlines and Singapore Airlines will provide necessary financial resources and management expertise to help the Chinese firm achieve the goal of becoming a hub airline company based in Shanghai, China Eastern's President and Chairman Li Fenghua said Thursday.

Li told China Daily the share sale to the Singaporean company will provide the sorely needed funding to establish the mainland's third largest carrier as a credible hub airline in Shanghai.

Currently the Chinese airline lacks management expertise and is weak in product design, which give rise to losses in many of its international flights. It loses 1 million yuan on each flight bound for the United States and 3 million yuan for each bound for South Africa because of low occupancy rate.

These loses are amazing. Every flight I've ever been on between the US and China is packed. You can't get a seat in business without calling well in advance and the cabin always appears full. China Eastern is much cheaper than United or American, but the condition of the planes is worse (although the flight attendants on the Chinese airlines are far superior).