The cooperation would bring the two five billion yuan (US$688.7 million) in returns annually, including four billion yuan in revenues growth and one billion yuan in cost reduction, CNAC added.
The alliance would help them grasp larger market shares of the international flights from and to Beijing and Shanghai and boost the competitiveness of their internationally weak cargo business, CNAC added.
A source with CEA's board told Xinhua last Tuesday the carrier "is willing to study any sincere bid that conforms with legal procedures and is better than Singapore Airline's offer".
The move marked a softening stance, as CEA's chairman Li Fenghua ruled out an alliance with Air China after a shareholder vote on January 8, saying "CEA will never give up no matter how big the obstacle it faces."
