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http://atwonline.com/

% stake in China Eastern for 55.3Delta to buy

million450 $

million to acquire a 450 has agreed to invest $Delta Air Linesbased-Atlanta

SkyTeam, and the China Eastern Airlinesbased-% stake in Shanghai55.3

members said they will launch a commercial cooperation plan.In comments posted on Deltas website, Delta SVP-Asia Pacific Vinay Dubesaid, Delta has nearly tripled the size of its China network in the past five years. Pairing up with China Eastern increases our reach and further

cements our commitment to the market and to our customers who travel

between China and the US. China Eastern is the hub carrier in the leading

Chinese business market, Shanghai, so this is a great opportunity to build a

profitable, enduring business model.China Eastern CEO Shaoyong Liu said in a statement, The cooperation of the parties is based on a global vision and joint strategic blueprint. The

parties will take advantage of their respective route networks, flight services,

relevant businesses and advantageous resources to fully connect the worlds two top economies as well as two top air transportation markets.Dube added, Our $450 million investment in China Eastern is only a part of our partnership. While the investment results in a 3.55% stake in China

Eastern and an observer seat on the China Eastern board of directors, the

true value in this agreement comes from our shared vision to build a long-

term, profitable partnership by creating a world-class, customer-focused

offering, and be the most successful franchise in the growing US-China

market.with Delta on codeshareChina Eastern and its subsidiary Shanghai Airlines

30 domestic US routes, 43 domestic Chinese routes and seven China-US

transpacific routes. China Eastern operates 35 weekly Boeing 777-300ER

flights from Shanghai to Los Angeles, New York, San Francisco and

Honolulu. Delta operates 28 weekly flights to Shanghai, Beijing and Hong

Kong from Seattle and Detroit. Delta recently moved to Terminal 1 at

Shanghai Pudong Airport, co-locating with China Eastern and Shanghai

Airlines.

Delta said its goal to be the most Chinese-friendly US airline.

http://www.avitrader.com/

Thai Airways reducing staff and ending flights to

the US

Since seizing power back in 2014 the Thai military government has

been looking to make financial cutbacks and reform state-run

organizations. As a consequence the countrys flag carrying airline, Thai Airways, is undergoing a number of changes with the aim of

reducing running costs and capacity by 20% over the next two years.

One of the measures will see 1,401 jobs go through voluntary

retirement this year alone, a figure which does not include those who

will also be reaching the age of retirement. The airline has set a

budget saving of THB5.3 billion (USD$151.9million) for the voluntary

retirement scheme.

The airline will also cease flying its unprofitable route to Los Angeles

in October which, after the termination of similarly unprofitable flights

to New York in 2008, will see an end to all flights to the US.

Combined with ending of flights to Rome from Bangkok, the airline

hopes to save THB100 million ($US2.9million) annually. However on

the up side, the carrier will be doubling its flights to twice daily from

Bangkok to London and Frankfurt.

Thai Airways is hoping to cut capacity by 15 percent for the second

half of 2015 and the suspension of these loss-making flights will

reduce capacity by 5% according to the airways President, Charumporn Jotikasthira, who also said that Its normal that we have to cut costs and adjust flights to suit changing situation, adding that Thai Airways is aiming to reduce operating costs by up to THB9

billion (US$261million) this year.

The airline currently has fifty low-return or loss-making routes, but

transferring three routes, Hyderabad in India, Changsha in China and

Luang Prabang in Laos, to its Thai Smile mid-range unit may well

help the carrier meet expectations of breaking even at the end of the

year, though there would then be additional restructuring costs to take

into account.

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