China Eastern Airlines said it would appoint Liu Shaoyong, chairman of China Southern Airlines, as a director of the company, replacing chairman and non-executive director Li Fenghua.

The Chinese airline also said it would appoint Ma Xulun as president and executive director of the company, replacing Cao Jianxiong.

Sources familiar with the situation had said on Dec. 12 that China Southern's chairman Liu Shaoyong had been appointed chairman of China Eastern by the central government.

The sources confirmed a report by the online edition of major Chinese financial magazine Caijing as saying the management reshuffle was part of preparations for a possible takeover of smaller Shanghai Airlines by China Eastern.

File Photo 1: Liu Shaoyong.

File Photo 2: Ma Xulun.