China Eastern Airlines (CEA.NYSE, 600115.SH, 0670.HKG) plans to trim its debt-to-asset ratio to 70% by 2015 from 81% today as the Beijing moves to shore up balance sheets at domestic airlines, Reuters reported. The second-largest Chinese air carrier by passenger traffic will cut its debt using fundraising, capital injections and profits, China Eastern Chairman Liu Shaoyang said at the International Air Transport Association’s annual meeting. He said he did not know whether the carrier would receive funding from the government, following news that two other major airlines would receive money from their state-owned parent companies. China Southern Airlines (ZNH.NYSE, 600029.SH, 1055.HKG) shares were suspended from trading, as it awaited word on whether its parent company would inject capital into the airline. Air China (AIRC.LSE, 601111.SH, 0753.HKG, AD2.FRA) intends to issue US$164.9 million (RMB1.05 billion) in shares to China National Aviation Holding to cut back on new loans. The Chinese airline sector has been under pressure from slowing growth and rising fuel prices.
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