China Eastern
counter at Beijing airport
According to state media the parent of China Eastern Airlines plans to seek another RMB10 billion ($1.5 billion) in government aid in addition to an earlier RMB3 billion bailout.
The Securities Daily, citing an unnamed source, reported that China Eastern Air Holding is having internal discussions on the details of the extra aid package bid.
The paper said the company, the nation’s third-largest carrier, needed the money to make up for operational costs and losses on fuel hedging contracts.
Luo Zhuping, a spokesman of Shanghai-based China Eastern, declined to comment on the report, saying ‘the issue is too sensitive’.
Earlier China Eastern and China Southern both announced plans to issue more shares to their parents in exchange for a RMB3 billion capital injection from the government.
China’s aviation industry has had a bad year, as travel demand has slumped amid the global financial crisis. China Eastern posted an RMB2.3 billion loss in the first nine months.
Source: AFP
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