China Eastern, Shanghai Airlines say not in merger talks

SHANGHAI: China Eastern Airlines and smaller rival Shanghai Airlines said Wednesday they were not in talks on a possible merger, responding to reports that the two might join forces.

China Eastern, which sought to sell a 24-percent stake to Singaporean investors including Singapore Airlines, said in a statement at the Shanghai Stock Exchange that it was not in merger talks with any other airlines.

Shanghai Airlines said in a separate statement that it was not involved in any major deals related to the consolidation of China's aviation industry. The statements came after China Eastern President Cao Jianxiong said Sunday state regulators in control of the two carriers were discussing a possible merger.