Cash-strapped Shandong Airlines will be taken over by Air China
Air China said it will buy a majority stake in the Jinan-based airline.
Air China already owns a 22.8% stake and 49.4% in parent company Shandong Airlines Group.
Shandong Airlines posted losses of USD280 million last year.
Trading was halted in Shandong Airlines’ stock on the news.
The transaction is still being discussed and is not done deal yet.
Shandong Airlines has fleet of over 130 jets which are mostly Boeing 737s.
