Two Chinese airlines, China Eastern Airlines Group and China Southern Airlines Group, are each expected to obtain 3 billion yuan from the government, according to the news from Shanghai Securities News.
The news also analyzed that Chinese domestic airlines were seriously troubled by both high costs and weak demand.
The funding mainly aims at alleviating operational difficulties faced by domestic airlines due to cost pressures and weak market demand.
The operational situation for the domestic aviation industry is extremely challenging this year.
On the one hand are high jet fuel costs, while on the other hand the market demand for air transportation is sliding rapidly due to the weak macro economy.
The third quarter financial reports from the three airlines indicate that all of them have suffered various losses.
China Eastern Airlines Group and Air China recorded a loss of 2.292 billion yuan and 657 million yuan respectively.
China Southern Airlines Group reported a profit of 28 million yuan, but a loss of 810 million yuan for the period from July to September.
By People's Daily Online
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