(Adds company official's denial in para 2; background)
SHANGHAI, March 10 The parent of China Eastern
Airlines (0670.HK) (600115.SS) is likely to receive a further
capital injection of 2 billion yuan ($292 million) from the
government, official media quoted its deputy general manager as
Another official at the parent group, however, rejected the
report. China Eastern Air Holding Co Vice President Liu Jiangbo
told Reuters on Tuesday that the airline had not received
additional government aid and denied media reports on the matter.
The official Shanghai Securities News on Tuesday quoted China
Eastern Air Holding deputy general manager Li Jun as saying that
the injection, which would bring total government aid to 9
billion yuan, still required approval from the authorities.
It also quoted Luo Zhuping, the listed company's board
secretary, as saying there was no timetable for receiving
After years of robust growth, China's airlines were hit hard
last year by a slump in passenger traffic due to the slowing
economy, while volatile fuel prices also hammered profits.
China's three big carriers, which also include China Southern
Airlines (600029.SS) (1055.HK) and Air China (601111.SS)
(0753.HK), have all warned of losses for 2008.
The China Southern Airlines group has received 3 billion yuan
in aid from the government, while Air China Chairman Kong Dong
said last week that his airline had also asked the government for
a cash injection of at least 3 billion yuan [ID:nPEK304767].
Liu Shaoyong, China Eastern's chairman, said last month that
domestic air traffic would remain soft in the first half of this
year but would start to see some growth in the second half, while
adding that the carrier hoped to receive additional government
(Reporting by Rujun Shen, Bella Zeng and Fang Yan; Editing by