Singapore Airlines, the world's second-biggest airline by stock market value, saw its bid to increase exposure to the booming China market suffer a setback after shareholders of China Eastern last month rejected a deal to sell 24 per cent of the firm for US$920 million (S$1.3 billion) to Singapore Airlines and its parent, Singapore state investor Temasek.

The bid had also met strong resistance from rival Air China.

'We have no plans,' Singapore Airlines Chief Executive Chew Choon Seng said on Monday in response to a question on whether the airline will renew its bid. 'We continue to engage them (China Eastern) in commercial cooperation, beyond that we have no other plans.'

Analysts expected Singapore Air to make a second bid, or to target smaller regional Chinese carriers, to seize routes in the world's fastest growing aviation market.

'Our offer is still on the table and we have said it is fair and full value,' Mr Chew told reporters on the sidelines of a conference. 'We will not ignore the growth markets, like China and India.

'We are always having an open mind and are scanning our horizons, but given the state of the world financial markets there are other things that engage our attention, such as planning for contingencies.'

The International Air Transport Association said on Sunday that global airlines are likely to see a further profit cut in 2008 as the credit crisis deepens and fuel costs remain near record highs.

Singapore Airlines shares traded 0.8 per cent higher to $15.94 by 10.33am, in line with the broader Singapore market. -- REUTERS