BEIJING, Aug. 30 (InfoChina) – China Southern Airlines (NYSE: ZNH, HK: 1055, SH: 600029) announced on August 30 that it has for the time being no plan to merge with or acquire other airlines, after an official from Air China said on August 29 that the possibility for the state-owned carrier to merge with other Chinese carriers, including China Southern, could not be ruled out.
China Southern statement clarifies that it doesn’t have any plan for assets reorganization, merger and acquisition or assets injection for the time being, with the exception of its negotiations with Air France-KLM (3112.FR) over a proposed air cargo joint venture.
On August 29, Cai Jianjiang, Air China president, said at Air China Interim Results Press Conference that Air China would consider a merger with other Chinese carriers, including China Southern, to sharpen its competitive edge, but he also stressed that no such a plan had been filed to the government yet.
However, Air China in the afternoon of August 30 made a clarification statement saying “up to present, the company has no plan to conduct any reorganisation, merger, acquisition or asset injection with other airline companies, nor has it any related timetable or target."
But there is restructuring possibility ahead for Chinese aviation industry, given the Chinese government’s plan to accelerate the reorganization of large-scale state-owned enterprises.
Despite the denials, China Southern and Air China closed high today, respectively up 1.83 percent and 0.29 percent, on Chinese A-share market. (Edited by Lin Fanjing, )
China Stock News 
