CHINA: China Eastern: break even 2010, profit 2011
China Eastern Airlines is targeting a breakeven 2010 and a profitable 2011, newly appointed Chairman Liu Shaoyong said this week, adding that the carrier is open to consolidation and a potentialmerger with Shanghai Airlines. The carrier hopes to off set the impact of heavy losses for 2008 by selling off its stakes in certain units […]
March 1, 2009
By PLA Editor
The carrier hopes to off set the impact of heavy losses for 2008 by selling off its stakes in certain units and cutting orders for new planes, the Wall Street Journal reported. Liu Shaoyang, the company chairman, admitted that the chances of turning a profit this year are still slim.
The airline’s target is to “substantially stem losses” in 2009 with a view to returning to profitability within three years. China Eastern will sell part of its 40 per cent stake in cargo joint venture Joy Airlines to Aviation Industry Corp, its partner in the venture. The Yunnan provincial government may sink cash into China Eastern’s wholly-owned Yunnan unit.