Merger talks between Air China and China Southern Airlines have broken down, Beijing-based industry sources say.
Reports say talks failed amid continuing concern over flag carrier Air China's financial shape, with China Southern unsure of the merits of a merger.
Flight International sister on-line service Air Transport Intelligence says, however, that tentative approval has been granted for the takeover of China Southwest Airlines by China National Aviation (CNAC), the commercial arm of the Civil Aviation Administration of China (CAAC). A takeover would bring Sichuan-based China Southwest into the same CNAC camp as Air Macau, Zhejiang Airlines and Hong Kong's Dragonair.
Beijing is keen to see China's 30-plus carriers reduced in number over the next few years.
Source: Flight International
