Singapore Airlines' purchase of 15%-25% of a recapitalized China Eastern should be announced before the end of the week, giving the Southeast Asian carrier excellent access to the booming Chinese market through connections with the country's third-largest carrier. An infusion of Chinese government capital and Singaporean capital and management know-how will also ensure the survival of an independent China Eastern, which is almost broke after repeated heavy losses.

Southeast Asian budget carriers are stepping up efforts at getting extra revenue by selling add-on products and services. Malaysia's AirAsia, which does not allocate seats, has begun letting passengers join priority boarding groups by paying a fee. Such passengers board ahead of the others and thereby get the best seats. The charge has been set at an introductory rate of around $6 per one-way flight, although it varies from country to country, depending on currency.

China Southern will launch at least seven international flights this year as part of a new emphasis on building up services to other countries to support and exploit its domestic network, China's largest. Most of the new services will also take advantage of the location of China Southern's Guangzhou hub as the most convenient gateway into China for cities south of the country. The company has previously taken a fairly conservative approach to international expansion.