SHANGHAI (AFP) — The parent of China Eastern Airlines plans to seek another 10 billion yuan (1.5 billion dollars) in government aid in addition to an earlier three-billion-yuan bailout, state media said Friday.
China Eastern Air Holding Co. is having internal discussions on the details of the extra aid package bid, the Securities Daily reported, citing an unnamed source.
The paper said the company, the nation's third-largest carrier, needed the money to make up for operational costs and losses on fuel hedging contracts.
Luo Zhuping, a spokesman of Shanghai-based China Eastern, declined to comment on the report when contacted by AFP, saying "the issue is too sensitive".
Last week China Eastern and China Southern both announced plans to issue more shares to their parents in exchange for a three billion yuan capital injection from the government.
China's aviation industry has had a bad year, as travel demand has slumped amid the global financial crisis. China Eastern posted a 2.3-billion-yuan loss in the first nine months.
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