Taiwan's government is seeking a financial adviser to assist with a revived plan to privatise China Airlines (CAL).
The government-controlled China Aviation Development Foundation (CADF), which owns 71% of CAL, says it plans to select an adviser by the end of March. It hopes to sell 20-30% of its shares by the end of June and more later in the year.
CADF chief secretary Lin Chun-cheng says the foundation ultimately wants to reduce its stake to below 35% and allow a strategic investor to take over management.
The government, which has control of the CADF's board, promised to revive suspended plans to privatise the airline after last May's crash of a CAL Boeing 747-200 that killed all 225 people on board. It was the carrier's fourth fatal accident since 1994 and led to a shake-up of the CADF's board, which is now led by chairman Lin Ling-san, Taiwan's minister for transport and communications.
Early in 1999, one year after a CAL Airbus A300-600R crashed near Taipei's international airport killing 202 people, the CADF announced its intention to sell half its stake in the airline, in part to bring in foreign management expertise.
But the plans were dropped a year later after officials claimed there was a lack of foreign airline interest.
Source: Flight International
