By Martin Mou
China Eastern Airlines Corp. said Monday that its controlling shareholder China Eastern Air Holding Co. will get a cash injection from four state investors, joining its regional rivals in receiving state financial support during the aviation downturn.
Controlling shareholder China Eastern Air Holding, which is ultimately owned by the Chinese government, will receive 31.0 billion yuan ($4.63 billion) in cash and use the new funds to expand its aviation business, the Chinese airline said.
China Eastern Air Holding will receive CNY11.0 billion from China Life Investment Holding Co. and CNY10.0 billion from Shanghai Jiushi, an investment entity of the Shanghai municipal government.
The other two investors, China Reform Holdings Corp. and China Tourism Group, will each contribute CNY5.0 billion.
Earlier this year, China Eastern's rivals Cathay Pacific Airways Ltd. and Singapore Airlines Ltd. raised funds from the Hong Kong government and Singapore government-backed entities, respectively, to tide over the downturn caused by the Covid-19 pandemic.
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(END) Dow Jones Newswires