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Additional Government aid on the way for China Eastern, increasing bailout funds to CNY9 billion


China Eastern Airlines' parent applied for additional government aid, with the group likely to receive a further capital injection of more than CNY2 billion (USD292 million), increasing the unprofitable carrier’s total bailout funds to CNY9 billion (USD1.3 billion). [1600 words]

Unlock the following content in this report:


  • Shareholders approve share placement plan
  • Secures two credit lines, totalling CNY35 billion
  • Additional bailouts and stimulus packages for domestic airlines required: China Eastern Chairman
  • Aims to trim losses "substantially" in 2009, with break-even result in 2010 and profitability in 2011
  • Fleet: In talks with Airbus and Boeing to delay aircraft deliveries
  • Concerns for Boeing and Airbus
  • Capacity: Capacity growth to slow in 2009
  • Fuel hedging: To reduce fuel hedging position in 2009, after fuel hedge losses widen in 2008
  • Staffing levels: Attention on labour costs
  • Branch carriers and subsidiary airlines: To sell a 35% stake in Joy Air
  • Increases capacity from Wuxi
  • To launch online mobile phone boarding at Shanghai

Graphs and data:

  • China Eastern Airlines restructuring programme: 2009
  • China Eastern fleet composition and plan: Mar-2009
  • Airbus Global Market Forecast: Top 10 countries from 2007 to 2026
  • China Eastern Airlines international vs domestic passenger capacity growth: Feb-08 to Jan-09
  • China Eastern Airlines passenger capacity and capacity growth: 2000 to 2008
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