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The consolidation of China Eastern Airlines and Shanghai Airlines has started, a move that will give China Eastern a 50 percent market share in Shanghai, a senior executive at Shanghai Airlines said.
"We received instructions from the government on Saturday about the consolidation," Shanghai Airlines vice-president Feng Xin was quoted by a report in the South China Morning Post as saying in Kuala Lumpur.
The consolidation will gear the merged airlines up for the 2010 World Expo.
The Shanghai municipal government considered the merger mainly because the two Shanghai-based airlines have too many routes overlapping, resulting in unnecessary competition.
