Friends in high places - Sichuan Airlines receives billions from shareholders

Following China Eastern's 1.2 billion yuan capital injection last week, more investments are on the way.

By XUE Bingbing


China Southern Airlines and Shandong Airlines are to inject 4.7 billion yuan (US$660 million) and 1.2 billion yuan into Sichuan Airlines, following China Eastern Airlines’ 1.2 billion yuan capital injection last week. 

Sichuan Airlines’ other shareholders, Sichuan Airlines Group and Chengdu Yinxing Gingko, are expected to put 4.8 billion and 120 million yuan. In total, its five shareholders will give 12 billion yuan.

China Eastern Airlines’ investment includes a hangar at Beijing Capital International Airport, while China Southern will provide an A330 aircraft.

Sichuan Airlines reported a net loss of 2.5 billion yuan in 2020, 1.8 billion yuan in 2021, and a net loss of 4.6 billion yuan in the first half of 2022. Over the three years of the pandemic, its loss may have exceeded 10 billion yuan.