Chinese airlines need more state aid
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Chinese domestic carriers have called for more government cash to help the aviation industry survive the current financial crisis, according to a Shanghai Daily report.
The industry lost CNY28 billion (US$4 billion) last year when it was hit heavily by the snowstorms, the devastating Sichuan earthquake and the ongoing financial crisis, Yang Guoqing, Vice Director of the Civil Aviation Administration of China (CAAC), was reported saying at the annual session of the Chinese People’s Political Consultative Conference in Beijing.
Liu Shaoyong, Chairman of China Eastern Airlines – one of the country’s hardest hit airlines – called for a further cash injection to help the his carrier cut debts and enhance competitiveness. China Eastern has already received CNY7 billion from its state-owned parent. The country’s largest domestic carrier, China Southern Airlines, received CNY3 billion.
“The government should help carriers ride out the economic storm by increasing cash injections, optimizing the network, speeding up reforms and allowing more flights across the Taiwan Strait,” Liu added.
Meanwhile Kong Dong, Chairman of Air China, was reported saying that his carrier was seeking a further capital injection from the government.
China’s aviation market reported single-digit growth in air traffic last year for the first time in five years, the report said. Passenger volume rose 3.3% to 192 million last year, compared to a rise of 16% in 2007.
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