BEIJING, CHINA - CHINA Eastern Airlines is still in talks to sell a stake to Singapore Airlines and it is very likely the two carriers will complete a deal, China Eastern Chairman Li Fenghua said on Thursday.

He gave no specific timetable for an equity deal but said it would have to take a back seat to the more pressing priorities of relief efforts after this week's devastating earthquake in south-west China and preparations for the Beijing Olympic Games in August.

In January, China Eastern's minority shareholders rejected its proposal to sell a 24 per cent stake to Singapore Air and investment agency Temasek for US$920 million (S$1.3 billion).

The thumbs-down came after the parent of Air China expressed interest in a tie-up with China Eastern, which the Shanghai-based airline rejected.

China Eastern is making preparations to open an office in Taiwan in anticipation of the opening of direct flights across the Taiwan strait, Mr Li said.

He said the carrier had sent 15 planes and six helicopters to help with rescue work in Sichuan province, where a 7.9 magnitude earthquake on Monday killed 150,000 people and more are feared dead. -- REUTERS