China Eastern, Shanghai Airlines to merge by year-end

BEIJING, Nov. 25 (Xinhua) -- China Eastern Airlines, the country's third biggest carrier, would complete its merger transaction with Shanghai Airlines by the end of the year, China Daily reported Wednesday.

All the legal procedures will be completed by the end of 2009, the newspaper said, citing Ma Xulun, general manager of China Eastern.

The Shanghai-based carrier said in July it would buy smaller rival Shanghai Airlines via a 9-billion-yuan (1.3-billion-U.S. dollar) share swap that would give it a market share of more than 50 percent in China's financial hub.

China Eastern is expected to return to the black in 2010 after a huge reduction in losses this year, according to Ma.

The airline made a net profit of 1.2 billion yuan in the first nine months of this year.