More than meets the eye in China Eastern's management shakeup

China Eastern's chairman Li Fenghua (李丰华) has been replaced by Liu Shaoyong (刘绍勇), chairman of rival China Southern Airlines in what's been described as a "government-orchestrated industry shake-up". There is no news on where Li Fenghua is off to next but we're curious because this was the guy that had earlier bitterly vowed that China Eastern would "never consider Air China as a strategic investor" after Air China blocked Singapore Airline's proposed HK$7 billion bid for a 24% stake in China Eastern. The management shakeup has piqued the interest of the Chinese business press. Some have speculated that Li is moving on to some new position in the State Council but this remains quite unlikely. As an anonymous insider revealed to the Securities Daily 《证券日报》, Li presided over China Eastern's worst performance ever, and bears some responsibility for losses of up to RMB5 billion in fuel-hedging. For that, Li may be sent off to "idle" at some work unit for some time before being "audited and reviewed" for his performance.