(Yicai Global) Dec. 27 -- China Eastern Airlines Group transferred its general aviation operator to China Aviation Supplies Holding Co. free of charge as part of the country's state-owned enterprise restructuring.
They held a strategic reorganization and handover ceremony for Eastern General Aviation Co. in Tianjin yesterday.
China Eastern Airlines Group's primary business is not general aviation, and the move aims to optimize industry structure and resource allocation by integrating EGAC with China Aviation Supplies.
China Aviation Supplies, an SOE engaged in the aircraft purchase and aviation equipment support business, had started implementing its plan for the general aviation industry chain before this initiative. It has subsidiaries coving centralized purchasing, warehousing and equipment management.
Uncompensated asset transfers between Chinese SOEs are common. The State-owned Assets Supervision and Administration Committee approved the free transfer of 20 percent equity in China United Airlines Co., a budget airline under China Aviation Supplies, to China Eastern Airlines Group in May 2012.