China plans financial aid to major airlines

The Chinese government plans to inject a total of 16-billion yuan, or about 2.3 billion dollars, in capital into 3 of the country's major airlines.

The state-run Xinhua News Agency reported that China Southern Airlines received 3 billion yuan, or about 440 million dollars, in capital from the government.

The airline is suffering from losses, mainly on international routes, due to surging fuel prices and a declining number of passengers amid the economic slowdown. It is also falling behind on its landing charge payments.

The government is studying public support for capital injections into 2 other carriers, Air China and China Eastern Airlines.

In November, the government announced an economic stimulus package worth nearly 600 billion dollars, which included plans to help the 3 carriers.

The government apparently aims to stabilize the business operations of the airlines amid the global financial crisis, and also help boost domestic demand.

2008/12/01 17:43


http://www.nhk.or.jp/daily/english/01_22.html

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