China Eastern Airlines will receive a big infusion of funding, totalling $4.6 billion from four new investors.
The new investment comes from China Tourism Group, China Reform Holdings, China Life Investment Holding Limited and Shanghai Jiushi Group.
It marks the latest move by China to diversify ownership of state-owned enterprises, a strategy it started well before the Covid-19 pandemic.
The airline posted a net loss of 8.5 billion yuan for the first half of 2020 due to weak demand for air travel caused by the pandemic.
While nearly all air markets around the world continue to struggle, China’s domestic market is back close to pre-pandemic levels.
The country’s airlines carried 13.3 million passengers during the Golden Week holiday period, which is double compared to the previous month.
Written by Ray Montgomery, Asia Editor
