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China Southern, China Eastern each to get capital injection of 3 bln yuan

Mon. November 17, 2008; Posted: 02:39 AM
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BEIJING, Nov 17, 2008 (Xinhua via COMTEX) -- EALN | Quote | Chart | News | PowerRating -- China Southern Airlines (ZNH.NYSE; 105 5.HK; 600029.SH) and China Eastern Airlines (CEA.NYSE; 0670.HK; 600115 .SH) each will get capital injection of 3 billion yuan from the govern ment, China Business News quoted a well-informed source as saying.

Sources of Civil Aviation Administration of China disclosed that th e civil aviation industry still incurred losses in October despite the increase in passenger transportation during the National Day holiday week.

By the end of September, China Eastern and China Southern posted as sets-liabilitiesy ratio at 98 percent and 83 percent, respectively.

It's estimated that after the capital injection, the assets-liabili ties ratio of the two airlines will fall to 94.7 percent and 80.5 perc ent, down 3.3 percentage points and 2.5 percentage points, respectivel y.

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