China Eastern Airlines on the restructuring of the curtain pricing power is the key word

Events in eastern Aviation. CFP Eastern Airlines Co., Ltd. (hereinafter referred to as "Eastern Airlines") and Shanghai Airlines Co., Ltd. (hereinafter referred to as "on the airlines") reorganization of the matter after the market appetite for up to 1 years, finally appeared the biggest curtain May.　　According to the East Airlines insider said that China Eastern Airlines, on the airline is about to suspend indefinitely, after the two companies will enter the actual operation of the restructuring phase.　　Details of the restructuring are not yet known, but some investment bankers have told reporters that, given the financial situation of China Eastern Airlines, it will also introduce funds from other institutions outside the government injection. Transmission will be suspended indefinitely on the night of Friday, China Eastern Airlines, the airline will be suspended indefinitely news will spread. A well-informed person said that the internal has issued the relevant documents. But East Airlines Dong Luo zhuping yesterday noon in an interview with reporters, but said that the suspension is not yet determined, should be based on the announcement. Shang Hang Dong Xu Junmin also said to reporters that "has not received major shareholders or the board issued a notice of suspension of stock." "And from the recent performance of two companies in the capital markets, the start of restructuring of the Eastern airlines seems to have a warning." From late May onwards, St Eastern Airlines and *st on the flight have a significant move. *st more than three consecutive trading days to touch the trading board. On May 27, the company issued a notice of the stock price anomaly, said the current production and operation of the normal situation.　　After consulting the company's controlling shareholder, Shanghai United Investment Co., Ltd, the shareholder's reply made it clear: in the next two weeks, in addition to the specific object of the Non-public issue of shares, there is no major asset reorganization, acquisition, divestiture and other major assets reorganization matters. Now it seems that this announcement is hidden in the expression of mystery.　　The "next two weeks", which do not involve major asset restructuring matters, will expire from the beginning of next Monday.　　The reason for the delayed start of the restructuring of the East Airlines is that the two companies are mainly bad financial situation. In 2008, China Eastern Airlines and the Upper airlines respectively appeared up to 13.9 billion yuan and 1.249 billion yuan of huge losses, Eastern airlines is seriously insolvent. Since then, China Eastern Airlines, on the airlines received 7 billion and 1 billion yuan capital injection. This May, Eastern Airlines Group spokesman Liujiangpo also confirmed to reporters that China Eastern Airlines Group has been injected 2 billion yuan. It said at the time that "this money will be used primarily to resolve the group's difficulties." "But it is widely believed that the money will be used to buy the airline." Shanghai United Investment Co., Ltd., with the background of Shanghai municipal government, currently holds 386.46 million shares on the airline, if calculated according to the price of about 5 yuan, the total amount is just around 2 billion yuan.　　In addition, the bank has also continued to give support to the Eastern airlines, as at the end of April this year, Eastern Airlines, the cumulative bank credit line has exceeded hundreds of billions of dollars. The rebound in the aviation market helped Eastern airlines turn red in the first quarter of this year. On the first quarter of the airline's earnings, the company's net profit of 26.27 million yuan, a year-on-year decline of 28.72%. Eastern Airlines Quarterly bulletin shows that as at the end of March, the company achieved net profit of 40.1 million yuan, down 80.98% year-on-year. But the company's total liabilities are 84.884 billion yuan, up from the end of last year635 million yuan. From the current performance of international oil prices, China Eastern Airlines and the financial plight of the airlines should be eased. According to the China Eastern Airlines February 28 this year, "Aviation oil hedging business indicative notice", if the price of oil than the December 31, 2008 closing prices fell 20%, 10% and increased 10%, 20%, 30%,　　The fair value loss of December 31, 2009 will be reduced by 600 million yuan, 1.5 billion yuan and 3.2 billion yuan, 3.8 billion yuan and 4.4 billion yuan respectively compared with December 31, 2008. The question of how to restructure the East China Airlines is still doubtful.　　Some insiders pointed out that the reorganization may refer to the cooperation between China Eastern Airlines and the Yunnan government to achieve the goal of retaining the brand.　　May 31 this year, the Eastern Airlines Group and the Yunnan provincial government signed an agreement, will be the Eastern Airlines and Yunnan state-funded committee to set up a joint venture between the two companies, so that the Eastern airlines is originally formed by the eastern Yunnan Branch Company as a subsidiary of the Eastern Airlines. Shaoyong has said that one of the main problems that China Eastern currently faces is the weak control capacity in the Shanghai market, the market share is only 32%, leading to low pricing power. China Southern Airlines in Guangzhou market share of more than 50%, Air China's Beijing market share of more than 45%.　　If the Eastern airlines and the completion of the restructuring, the new company accounted for the Shanghai market share will be expected to reach 50%. At the market level, China Eastern is considering carrying capacity to the core market, key markets and profitable lines, and strengthening the matching of capacity and market.　　For the first quarter of this year's domestic market passenger growth of 18, 7%, international routes of passengers down 18.8% of the situation, the first international shipping capacity back home. Newspaper reporter Dong Ji