SASAC director Li FireWire survey: The strongest force to help China Eastern airlines to restructure

Every reporter Sun Jiasha from Shanghai in each share of the shares can be exchanged for 1.3 shares of the merger plan announced, yesterday St. East Airlines and St on both sealed the death limit. But the road to restructuring is just beginning, and the integration of the business units of the two companies will be the focus of the next step.　　Some experts said that the new Eastern Airlines in Shanghai market control will be enhanced. "What is currently going on is only a restructuring of the shareholders at both sides, and how the next two business units will be integrated is the key." "13th, China Eastern Airlines, on the flight of a number of people to the daily economic news reporter said." "At least for now at our level, we have not been notified of business integration, nor have we seen files."　　One of the management people on the flight told reporters. July 10, China Eastern Airlines, the two companies to hold the board of directors, the trial passed the relevant reorganization, exchange for shares merger matters.　　On the same day, the State Council director of State-owned Sasac Li with the head of various departments of the Commission came to the East Airlines survey and said that the reorganization has had the "correct thinking, market superior" conditions, commitment to "the strongest force" to assist in restructuring, hope that the joint restructuring of the two airlines to create a central enterprise and local SASAC corporate cooperation model. Li hope that China Eastern airlines with international competitiveness in the reorganization of the plan announced on the eve of July 10, the State Council director Li to the East Airlines research, Peers also have SASAC organs more than 10 hall-level leadership. Li to China Eastern Airlines "high hopes", and said that the reform and development of China Eastern Airlines "special support." Liu, chairman of China Eastern Airlines, briefed Li on the work of the first half of the eastern airlines, referring to the progress of the joint reorganization. Liu clearly realized that at the critical juncture of reorganization, Li came to investigate the support, so that China Eastern will be from the breadth and point of the depth of the implementation and the joint restructuring of the airlines, the second half will accelerate the reform and restructuring process. Li said that the current brand image of the Eastern Airlines has changed, SASAC has always attached great importance to the Eastern airlines, will fully support the reform and development of China Eastern Airlines, mobilize the strongest force to assist the East Airlines do a good job of joint restructuring.　　Li pointed out that the reorganization must be effective and hope that China Eastern airlines to become internationally competitive enterprises.　　At the same time, the reporter learned that the Shanghai Municipal party organization and the Chairman of the Zhou Chi on the restructuring, stay and so on issues, Zhou Chi may be in the reorganization after leaving the air. China Eastern Airlines 1.3:1 exchange for shares on the Eastern Airlines news spokesman Liujiangpo said that two aviation enterprises restructuring and mergers has entered a substantive stage. The reporter learned yesterday that CICC's audit work on the merger and acquisition of the shares has not been completed.　　According to the present plan, the stock exchange after the merger is completed, Shanghai Airlines will terminate the listing, and cancellation of legal personality, Oriental airlines as the completion of the merger of the surviving company, will be in accordance with the Agreement on the absorption of shares of Shanghai Airlines, all assets, liabilities, business, personnel and all other rights and obligations. According to the disclosure of the plan, the Eastern Airlines for the absorption of shares of the shares of the exchange price of 5.28 yuan/share, the price of the airlines for the exchange of 5.50 yuan/shares, and according to the two sides in consultation,As for the risk compensation of the airline shareholders who participate in the stock exchange, it will give the airline shareholders about 25% risks premium in the implementation of the stock exchange, that is, the share of the shares can be exchanged for 1.3 shares. China Eastern Airlines and China Airlines said that the two sides from the date of the signing of the Merger agreement, the joint application to the Civil Aviation Authority, the Shanghai Airlines all operating licenses, and aircraft-related license and record registration, as well as the right to operate the route, and so on all changes to the recipient name,　　All scheduled employees on the delivery date will also be accepted by the receiving party. "Now that the plan has been established, the next will be held at the general meeting of shareholders, and through the programme, then the program to report to the SASAC, the Civil Aviation Authority, the SFC, and approved, the Ministry of Commerce will also review antitrust matters." It may take nearly half a year to complete this sequence of procedures.　　"A senior executive of China Eastern Airlines told reporters.　　At the same time, China Eastern has another plan to raise more than 7 billion yuan in domestic and international capital markets. The new company still faces a lot of difficulties after the reorganization. 2008, the two companies are deeply immersed in aviation oil cover the adverse effects of floating losses, Eastern airlines at the end of the fair value of the loss of 6.256 billion yuan, on the airlines also reached 172 million yuan.　　China Eastern said that due to the number of hedging contracts due to be delivered this year, because a certain amount of actual delivery losses may be incurred. Aviation oil cover, more people are concerned about the new East airlines personnel arrangements. "This is two different airlines, and once the two parties are not effectively integrated, the outlook for the new company is worrying." There is no reference to the integration of specific departments, so the path of reorganization is unknown, but some loss-making departments will begin to clean up. For example, last year's loss of cargo on the air, may be the holding power to Evergreen Airlines.　　An airline official told reporters.　　China Eastern also said that after the merger was completed, the integration of management system and organizational structure in place still requires a certain amount of time, and at the same time, there are many enterprises in Shanghai Airlines, the scope of business covers all aspects of the air transport industry, service coverage of a wide range, the eastern side of the integration of navigation and its subordinate enterprises in the management of the " Under the reorganization, the issue of the airline is not all the voice of approval, independent director Guxiaorong that the option to swap shares in the price did not carry out a full and comprehensive argument, and whether it is conducive to the integration of new companies remains to be seen, so the absorption of the merger has reservations.　　Another single Dong Zhangguijuan said that the absorption of the merger is to speed up the construction of Shanghai International Shipping Center, to achieve the Eastern Airlines on the main business and asset optimization integration, in line with the national strategic step requirements, so hope the government to strengthen support. Enhanced synergy after the completion of the joint reorganization, the original Shanghai Airlines assets, liabilities, business and personnel will all enter the wholly owned subsidiary of the Eastern Airlines: Shanghai Airlines Limited Liability company, the brand will be retained to maintain business continuity. At present, the Eastern group holds 74.64% per cent of the listed companies, to the end of last year, the eastern aircraft team size of 240, with 423 passenger lines, freight Route 16, the first quarter of this year, China Eastern Airlines to achieve a net profit of 40.1 million yuan.　　And on the flight up to the end of last year owned 66 aircraft. China Eastern said that after the reorganization of two companies can achieve route planning and flight planning optimization, route network structure, improve transport efficiency, thereby reducing operating costs and management costs, enhance corporate profitability. There are Eastern airlines analysis that, although the Eastern airlines and the airlines are based in Shanghai, "but has been all over the past, not only in the price competition is quite strong, but also in the construction of resources to create a duplication and waste." After this reorganization, we in the aircraft procurement, maintenance, repair, aviation supplies these aspects can form synergies, not waste. "The current domestic route, East Airlines and on the air repeat more, the new company can consider the deployment of the fleet, optimize the domestic route network layout; On international routes, the main route is Southeast Asia, the eastern side of Europe and the United States line more, can form complementary, this to the new company's international route operation is a good news.　　Said the eastern airlines people told reporters. More importantly, the new Eastern Airlines will master a large number of Shanghai origin, arrival time resources, through a reasonable overall planning, the time the economic benefits of resources will also be promoted.　　At the same time, the new company can through centralized procurement, effectively reduce the company's aviation oil, aviation materials, aircraft procurement costs. Synchronous broadcast of the Eastern Airlines on the board to increase investment rating of trading institutions yesterday, St Eastern Airlines (600115, closing price of 5.6 yuan) and St (600591, closing price of 6.22 Yuan) announced the merger scheme and the transaction, two stocks both sealed the death limit. To close, hundreds of millions of shares are still in pursuit of St Eastern Airlines, and St on the airlines also have more than 50 million of the list.　　Analysts believe that the huge amount of trading on the one hand is 1 months of suspension of the demand, and the merger of the program shows a clear management support attitude. According to the announcement, the Eastern airlines to the issue of additional shares to absorb the merger, the exchange rate of 1:1.3. After the implementation of the joint reorganization, on the flight into a wholly-owned subsidiary of the Eastern Airlines, on the airlines from a a-share retreat from the market but retain the status of corporate and brand. The former shareholder of the airline is the new China Eastern Airlines shareholder. If the China Eastern Airlines and the floating stock shareholders are unwilling to change shares, China Eastern will provide cash options or acquisition claims, China Eastern Airlines a A-shares for 5.28 yuan/share, H-shares 1.56 Hong Kong dollars/shares, on the airlines a A-shares for 5.5 yuan/share.　　At the same time, the east heading to the Eastern group and other specific investors non-public issue 1.84 billion shares, including a A-share directed additional 1.35 billion shares, the additional price is not less than 4.75 yuan/unit, H-share directed additional 490 million shares, the additional price is not less than 1.4 Hong Kong dollars/shares, a total of 7.02 billion yuan　　Analysts predict that, because of the upper airlines and Eastern airlines to share the ratio of 1.3:1, so the safety margin of the share price on the airlines should be more than 6.86 yuan. CITIC Securities expects China Eastern to achieve its main business earnings and dilemma reversal in 2010. It is expected that the new Eastern airlines earnings per share next year is expected to reach 0.245 yuan at the same time expected tipped. Refer to the currentAir China's share price and market value, Citic Securities will St Eastern Airlines and St on the investment rating from "overweight" to "buy", Eastern Airlines target price of 6.84 yuan, considering the share of the shares and cash options, on the target price of 8.89 yuan. With each reporter Zeng Zi build the relevant news the Shanghai market pattern will be affected by the reorganization of the Eastern Airlines on the Xiangxiaohui. After the reorganization from Shanghai, the new Eastern airlines will occupy the market share of the Shanghai aviation market around 50%, and with Air China leading Beijing, South Airlines control Guangzhou formed the Chinese aviation industry pillars pattern.　　After the joint reorganization of China Eastern Airlines and the airlines, the comprehensive strength of the new China Eastern Airlines and the control ability in the Shanghai aviation market have been enhanced, which will have an impact on the civil aviation market pattern. Competitors in Shanghai or pressure South Airlines chairman Shimin earlier in the interview with the Daily economic news, said the restructuring of the new Eastern Airlines will affect the southern Airlines Shanghai, Sui, deep market share, but not the impact on other places.　　But he also believes that after the reorganization of the new Eastern Airlines will expand in Shanghai's overall market share in the main market to strengthen the control, will be in Shanghai, China Southern Airlines key routes caused a certain pressure. Air China chief Huang said that the restructuring will not affect the Shanghai market strategy, Air China's Shanghai branch of the business is still in accordance with the plan.　　This February, Air China has set up Shanghai branch, according to the introduction, Air China has 80% of the international route layout in Shanghai. Analysts believe that in the fierce competition in the aviation market, the three major airlines based on their respective leading aviation market, friction is unavoidable, but the overall pattern of China's civil aviation industry will not be too big. It is reported that recently, China Eastern Airlines has officially put capacity in Beijing to strengthen the weight of eastern Airlines in the Beijing market, plans to increase the market share of China Eastern Airlines in Beijing to about 20%.　　And Air China, Southern Airlines in the Shanghai aviation market, the proportion of more than 10% respectively. Experts say they are optimistic about the prospect of restructuring Li Xiaozin, director of the Institute of Transport Economics, China's civil Aviation University, said to the daily economic news Reporter: More optimistic about the prospects for restructuring, the main reasons are two: first, the reorganization of the new Eastern Airlines in Shanghai market share has been promoted, with a greater share; the second is through reorganization,　　Companies to a certain extent to form the scale of development, can reduce costs. As for the restructuring of the civil aviation industry competition, Li Xiaozin that the impact will not be very large. "Three major airlines dominate the market pattern of competition has been formed, and HNA, Shenzhen Airlines and other small carriers have played a make-up role." At present, the Eastern airlines and the market overlap of the airlines is about 70%, a city in Shanghai has Pudong and Hongqiao airport, resulting in two companies operating costs are high, weak control, reorganization is conducive to both sides in the Shanghai market configuration.　　Li Xiaozin also said that the reorganization certainly has certain influence to air China and the southern Airlines market share in Shanghai, but the influence is not too big. Li Chunling, a professor at the School of Economics and Management at China Civil Aviation University, said in an interview with the Daily economic news: "After the merger, the Eastern Airlines and the airline will be able to provide an orderlyCompetitive environment. The previous two companies in Shanghai, will inevitably pass the price of such vicious competition to seek development. Through the integration of two to become a, relatively, conducive to access to the market, from the perspective of industry development, there will be some improvement.　　"Li Chunling that through integration will also eliminate such as homogeneity, positioning problems such as some unnecessary market competition, after the merger management costs will be reduced, the company in the airport, logistics maintenance, network, planning and so on will have a better adjustment to achieve resource sharing and reasonable allocation. "The merger itself is good for reducing losses and increasing revenue," Li Xiaozin said. After the merger in the procurement of more scale, relatively speaking, can be cheaper; in the market, through the cooperation between the two sides can form a greater market share. ”