China Eastern Air Holding, Ctrip Announce New Strategic Collaboration

, a major travel service provider in China and

, one of China's 3 major air transportation groups,

a new strategic collaboration. As part of the agreement, Ctrip and China Eastern Airlines will collaborate together on a broad range of products and services, including low-cost transportation solutions, international air travel, IT technology, travel insurance, and e-commerce. In addition, Ctrip will invest RMB3 billion ($0.46 billion) in China Eastern Airlines' A shares through a private placement. Ctrip was also given the option of increasing its ownership stake over the next 12 months and could also appoint an observer or a board member. Shares of China Eastern Airlines were trading higher by 0.61 percent ahead of Thursday's opening bell while shares of Ctrip were lower by 0.19 percent at the same time.