Hainan Airlines to receive CNY3 billion
Hainan Airlines is expected to receive a CNY3 billion ($439 million) capital injection from the Hainan provincial government and its parent Hainan Airlines Group to facilitate fleet expansion and improve its debt ratio, ATWOnline reported. The provincial government and HAG each will provide CNY1.5 billion to HNA. The money is intended to reduce the Haikou-based carrier's debt ratio to 81%. HNA plans to introduce 90 new aircraft in 2009-13. They will cost around CNY24.3 billion; the capital injection is aimed at broadening aircraft financing channels available to HNA, Guotai Junan Securities noted. China Eastern Airlines, China Southern Airlines, Shanghai Airlines and Grand China Express have received CNY7 billion, CNY3 billion, CNY1 billion and CNY200 million government capital injections respectively.