News
China Eastern considers investment subsidiary
November 18th 2016
Shanghai’s China Eastern Airlines has asked Beijing for permission to launch an independent investment subsidiary to explore equity opportunities across the aviation sector, the airline’s vice-president for strategic development, Wang Haitao, has told Mainland financial publication Yicai. Read More »
Wang said the airline passenger segment would remain China Eastern’s core business but an investment arm would reduce its reliance on ticket sales.
China's travel boom has brought in large profits for its state-owned carriers but passenger revenues have begun to decrease amid fierce competition, a slowing economy and a fast-growing high-speed rail network.
China Eastern’s third quarter net profit improved 96% year-on-year, to 3.5 billion yuan ($520 million). Revenue expanded by 5.2%, to 29.1 billion yuan. Operating expenses rose 8.4%, to 22.2 billion yuan.
