China Eastern to join hands with Alibaba: report
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[June 26, 2009]

China Eastern to join hands with Alibaba: report

BEIJING, Jun 26, 2009 (Xinhua via COMTEX) -- China Eastern Airlines (CEA.NYSE; 0670.HK; 600115.SH) is reported to have adopted Alipay as its online settlement tool to raise its competitive power in e-ticketing.

According to Beijing Business Today, the airline and Alibaba have signed a contract and will launch the online payment platform within the year.

Such online travel agents as Ctrip (CTRP.NASDAQ) and eLong (LONG.NASDAQ) rapidly consolidate their market position on e-ticketing, attracting traditional travel agents rushing to use e-commerce methods.

However, airline companies in China are still slow in e-commerce.



Air ticket booking via airlines' websites accounted for just 3.5-4 percent of the total online booking amount.



Market hearsay goes that Air China (601111.SH) and China Southern Airlines (ZNH.NYSE; 01055.HK; 600029.SH) will also start cooperation with Alibaba by year end to boost online sales via their own channel rather than through agents, cut costs and improve profitability.

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