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Merger's odd staffing

Merger's odd staffing

Write: Egor [2011-05-20]

One day you're a mid-level manager in Shanghai Airlines, and the next you're out on the tarmac filling China Eastern Airline planes with fuel.

While it may sound a bit far-fetched, that scenario is not totally impossible as China Eastern may reassign up to 800 members of its managerial staff - an apparent consequence of last year's merger with Shanghai Airlines - into different positions.

If the news proves to be true, the policy will likely be announced before start of the Spring Festival on February 3.

The plan would be officially implemented soon afterward, according to a report by the Economic Observer.

The media outlet reported that a concrete policy for reducing staff numbers was still in the developmental stages.

After the merger, which regulators approved in December 2009, China Eastern Airline's board chairman Liu Shaoyong told the media no workforce changes were were in the works.

Instead, Liu boasted that the merger could result in up to 13,000 new jobs as they expanded further.

According to aviation industry information website carnoc.com.cn, China Eastern's spokesman said Thursday that plans to redeploying human resources will improve the firm's competitive edge.

One China Eastern employee in Xian, Shaanxi Province, speaking on condition of anonymity said, "China Eastern has performed well this year, so it shouldn't be shifting people."

According to China Eastern's website, the company employs a whopping 60,000 staff yet owns only 330 aircraft as of January this year. That compares with 24,000 staff at Air China and some 270 aircraft.

Yao Jun, an industry analyst with China Merchants Securities, said Thursday that the personnel moves are in line with China Eastern's development strategy, and it will not impact business performance.

"(The changing of staff positions) is a follow-up strategy from the new China Eastern Airline management, said Li Lei, industry analyst from CITIC China Securities Thursday.