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China Eastern, China Southern parents get funds

(Agencies)
Updated: 2008-11-17 10:24

The parent companies of China Eastern Airlines and China Southern Airlines will each receive a 3 billion yuan ($440 million) capital injection from the government, according to sources.

Related readings:  China Eastern-Shanghai Air deal nodded  China Eastern expects big loss  China Southern invests in northeastern hub

China Eastern Air Holding Company and China Southern Air Holding Company will get the funds within this year and then inject the money into their listed units, said sources.

As a result, China's Eastern's debt-to-equity ratio will fall to 94.7 percent from more than 98 percent, while China Southern's ratio will drop to 80.5 percent from 83 percent, added sources.