Taiwanese national carrier China Airlines (CAL) has confirmed that it is hoping to attract an overseas strategic partner, with the planned sale of up to 16% of the airline's stock by its main shareholder, the China Aviation Development Foundation (CADF).
The quasi-Government controlled CADF wants to reduce its shareholding in CAL from 71%, by selling around 210 million shares in the form of global deposit receipts. The Government is expected to allow a foreign carrier to take 10% or less, with the rest to be floated internationally.
Taiwan's transport ministry has still to approve the precise number of shares to be offered. "There is some concern that a foreign company will have a very large stake in the flag carrier, and that's why its being held up," says ING Barings analyst Chih Fang.
Some major international carriers are thought to be interested in acquiring an interest in CAL, including American Airlines, British Airways and Lufthansa. The Taiwanese carrier is finalising a codeshare deal with American, as well as with Continental Airlines, and in January 1996 it signed a flight safety support agreement with Lufthansa Technik..
Source: Flight International
