Shanghai Airlines is seeking a capital injection of up to US$438.9 million from its shareholders as its business has been hurt by slackening demand and a big debt load, the South China Morning Post reported. "We are discussing with our shareholders about in increase in share capital in Shanghai Airlines," the company secretary Xu Junmin, was quoted as saying. He added that the capital injection might be funded directly by shareholders or indirectly by the government. A framework agreement for the capital injection will be released soon. The airline’s shareholders include the Shanghai office of the State-owned Assets Supervision and Administration Commission (Sasac) and Bank of China Group Investment. Beijing has already injected capital into state-owned carriers to help them survive the financial crisis.
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