China Southern Airlines may receive a US$220 million cash injection from the government, Bloomberg reported. Trading of the company’s stock was halted in Hong Kong and Shanghai from today for no more than ten days while airline determined how to use the funds. According to a statement to the Shanghai Stock Exchange, the funds would be allocated by the Ministry of Finance and used to "support the development of the airline’s core business." China Southern and parent China Southern Air Holding are considering using the funds to reduce the company’s asset debt ratio, the statement said. The carrier in January agreed to buy 20 Airbus A320s and expects to book a profit for full-year 2009 against a loss of US$70 million in 2008.
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