Eastern investment is plain good sense

Source: Xinhua | 2018-11-13

THE investment unit of China Eastern Airlines’ controlling shareholder will invest 3.15 billion yuan (US$452 million) in Juneyao Airlines.

The China Eastern Industrial Investment Co, the wholly-owned subsidiary of China Eastern Air Holding Co, will own 8.6 percent stake of the privately-owned Juneyao Airlines after the share subscription.

In July, Juneyao Airlines and its controlling shareholder Juneyao Group invested US$1.9 billion for a stake of 5 percent in China Eastern Airlines.

Shanghai-based Juneyao Airlines said the investment was to improve the strategic partnership between state-owned capital and private capital and to help build up its brand internationally.

Juneyao is one of China’s largest private carriers operating both domestic and international flights.

It is a connecting partner with Star Alliance. China Eastern is a member of the rival SkyTeam alliance.