Fitch: China Eastern Airlines to benefit

Fitch Ratings said China Eastern Airlines Corp. Ltd. (rated B+ with stable outlook) has been approved by the Chinese government to sell a 24% stake to Singapore Airlines Ltd. and Lentor Investment Pte. Ltd., by issuing new shares. Following this transaction, parent company China Eastern Air Holding Co. will maintain its controlling position with 51%.

Fitch said it views that this will benefit China Eastern from a financial perspective, at least in the short term. Longer-term operational benefits will however, be dependent on Singapore Airlines' ability to bring about changes at China Eastern, the agency said.

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