The sale was approved by the State Administration of State-owned Assets Commission, Chairman Li Fenghua said at a shareholders' meeting in Shanghai today. The airline is still discussing final details with other regulators, he added.

Singapore Airlines and Temasek Holdings Pte., the Singapore government investment company, will buy a stake of about 25 percent, Li said. The Singaporean carrier plans to invest in China Eastern to add flights in a market expected to grow fivefold by 2025.

"Singapore Airlines is buying market access in China rather than just taking a stake in an airline," said Steven Lim, who helps manage about US$300 million at Daiwa SB Investments in Singapore. "The potential in the medium-to-longer term is huge."

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China Eastern expects to complete the sale soon, Li said, without giving a time frame. He didn't say how much the Singaporean companies would pay.

The approval procedure will probably take at least another two weeks to complete, as the deal needs to be sanctioned by at least five departments under the State Council, said Lei Li, an analyst at China Securities Co.

The Shanghai-based carrier also expects to post its first profit in three years this year, Chairman Li said. The airline will probably return to profit in the first half and make a full-year net income of at least 200 million yuan (US$26 million), he added.

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