State-owned Shanghai Airlines may get a cash injection from the State-owned Assets Supervision and Administration Commission (SASAC), state media reported. Shanghai Airlines has lost US$60 million in the last three quarters, and had to record a US$14.2 million in fuel hedging losses in November. The move may pave the way for a long-discussed merger between Shanghai Airlines and China Eastern Airlines. China Eastern is already getting a government bailout and is likely to get a US$438 billion loan. Okay Airways, China’s first private airline, is not eligible for SASAC assistance and has suspended operations for a month.
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