China Eastern will probably sell a 35% stake in China Joy Air to AVIC, the China Aviation Industry Corporation.
China Eastern will probably keep about 5% stake in Joy Air although everything is still somewhat up in the air.
AVIC said that China Eastern decided to adjust its development strategy because of capital shortages. But the company may consider repurchasing the stake later.
Joy Air was set up under the approval of the Civil Aviation Administration of China (CAAC) as a regional airline operator. Its base camp is in Xi’an Xianyang International Airport.
Source: Trading Markets