Singapore-China Eastern alliance approved

THE Chinese government has approved the long-awaited alliance between China Eastern Airlines and Singapore Airlines.

The two airlines will sign an agreement enabling Singapore Airlines to take a 15.8 per cent stake in the Chinese carrier. Singapore is backed by Temasek, which will take an 8.2 per cent stake.

It is thought their union will drive a merger between Air China and China Southern, currently being proposed by the government.