Shenzhen Airlines stake open to offers

Air China dropped out of the auction for majority control of Shenzhen Airlines this week because the bidding had risen too high, according to Kong Dong, chairman of the China National Aviation Corp (CNAC), the Hong Kong-listed arm of the General Administration for Civil Aviation of China. He spoke to reporters on the sidelines of CNAC's annual general meeting yesterday.

Two private firms combined to bid 2.72 billion yuan for 65 per cent of the Shenzhen-based carrier, making Air China's 25 per cent share worth a little less than 1.05 billion yuan. Mr Kong, who is also vice-chairman of Air China, said the airline had not formally put its stake on the block, but that it would now entertain offers at a similar level.