Parent Offers Credit Lifeline To Carrier

By Luo Jun  |   2009-1-16  |     NEWSPAPER EDITION

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CHINA Eastern Airlines Corp, the nation's third-largest carrier, said it will receive a 5.55-billion-yuan (US$811 million) short-term loan from its parent.

The six-month loan will be used as working capital by China Eastern to ease its liquidity, the Shanghai-based airline said in a statement to the city's bourse. The carrier will pay an interest rate at a 10-percent discount to the benchmark, it said, according to Bloomberg News.

China Eastern expects a ''significant loss'' for 2008, its third unprofitable year in four, on 6.2 billion yuan of hedging losses and waning travel demand.


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