China Eastern moves to raise $2.1 billion in capital
15 May 2008
China Eastern Airlines says it wants to raise at least 15 billion yuan ($2.1 billion) in capital for new planes and training which would help it compete with Air China and Cathay Pacific. The Shanghai-based carrier was embroiled in a very contentious bidding war with the parent company of Air China, over the selling of a stake to Singapore International Airlines (SIA).
SIA's move was successfully thwarted by Air China's parent, China National Aviation Holding Co., which, though, failed to carry its own move to acquire a stake in China Eastern to a successful conclusion.
"If we can get more, it'll be even better,'' China Eastern chairman, Li Fenghua, said in an interview. A combative leader, Li said he planned to reach the targeted amount by reviving the sale of a stake to Singapore Airlines, and also by tapping capital markets and through subsidies from the government.