China Eastern to absorb and merge OTT Airlines

Report by : Gan Yung Chyan, KUCINTA SETIA

Recently, China Eastern Airlines Corporation Limited announced that China Eastern will absorb and merge its wholly-owned subsidiary OTT Airlines.

After the completion of this absorption and merger, China Eastern, as the absorbing and merging party, will inherit all assets, businesses, debts and other rights and obligations of OTT Airlines and continue to operate. OTT Airlines, as the absorbed and merged party, will be deregistered in accordance with the law.

The merging parties will sign relevant agreements, prepare balance sheets and property lists, perform creditor notification and announcement procedures, and jointly handle asset transfer procedures, ownership changes, tax liquidation, industrial and commercial deregistration procedures, and other procedures required by laws, regulations or regulatory requirements.

The announcement pointed out that this absorption and merger is conducive to optimizing the company's management structure, shortening the management chain, improving management efficiency, and reducing management costs. At the same time, this absorption and merger reflects the company's emphasis on the operation of domestic civil aircraft, incorporating the ARJ21 fleet into the company's large fleet for unified operation, and coordinating production organization, which is conducive to the long-term development of the ARJ21 fleet and achieving the goal of "flying out safety, flying out ambition, flying out brand, and flying out efficiency."