Ctrip OTA invests US$463m in China Eastern Airlines

China’s online travel agency (OTA) Ctrip has invested CNY3b (US$463m) in China Eastern Group, parent of China Eastern Airlines (CEA). The strategic investment is an effort to boost the carrier’s direct sales and enhance its position in the travel chain. The private placement investment represents a 3% stake in the carrier. According to the agreement, “If Ctrip can raise its stakes of CEA to 5% in 12 months after the carrier completes its private placement and can meet certain requirements, it would obtain a seat on CEA as a board observer. If Ctrip can raise its stake to 10% in 12 months after the carrier completes its private placement and meets certain requirements, it would obtain a seat on CEA as a board member.” Both companies vow to strengthen their cooperation in the fields of IT, travel product development and technology connection. <br/>