Hainan Airlines will get a capital injection of US$440 million from its parent company and the Hainan provincial government by selling them new shares.
Hainan Airlines’ debt-to-asset ratio will fall to around 81% after the injection. The carrier had a debt-to-asset ratio of 87% at the end of March.
Cargonews Asia reported that the airline joins other Chinese carriers, including China Eastern Airlines, China Southern Airlines and Shanghai Airlines, in receiving state funds to help it weather the downturn in the aviation market caused by the global financial crisis.
However, the prospects for Hainan Airlines seem to be pleasing as passenger loads are up and new destinations are being added.
It may become one the most successful comebacks in China aviation.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved