China Eastern seeks more capital injections

Shortly after announcing it would sell stakes in certain units and cut orders for new aircraft, China Eastern Airlines (CEA) has asked Beijing for further capital injections, the South China Morning Post reported. "We are negotiating with the central government for a further capital injection … but it is a complicated issue," said CEA Chairman Liu Shaoyong. The carrier has already received two rounds of government aid, totaling US$1.02 billion; those injections still require approval from CEA shareholders. Noting that government aid would be insufficient in helping the company to turn around, Liu told the paper that the airline would be open to other investors to help it upgrade its management and network coverage. Last year, CEA shareholders rejected a bid by Singapore Airlines (SIA) to invest in the carrier. CEA’s board and SIA had hoped the deal would improve CEA’s management and increase its international expertise.