Hainan Air to get $440 million bailout

Hainan Airlines is set to get a capital injection of US$440 million from its parent company and the Hainan provincial government by selling them new shares, according to Dow Jones.

Hainan Airlines' debt-to-asset ratio will fall to around 81 per cent after the injection, an un-named source was quoted as saying. The carrier had a debt-to-asset ratio of 87 per cent at the end of March.

The airline joins other Chinese carriers, including China Eastern Airlines, China Southern Airlines and Shanghai Airlines, in receiving bailouts from Chinese authorities as they struggle to stay aloft in the turbulent aviation market.