Air China Requests Government Cash Injection

Air China's Chairman Kong Dong said on Wednesday the airline can be profitable in 2009, but has asked the government for a cash injection of at least CNY3 billion yuan (USD$439 million).

China Eastern Airlines, China Southern Airlines and Air China are the country's three biggest carriers and have all warned of losses for 2008, the worst year since SARS (Severe Acute Respiratory Syndrome) struck the industry in 2003.

The company has submitted a request for a government cash injection and expects to get at least as much as the CNY3 billion yuan expected by rival China Southern, Kong told reporters on the sidelines of a meeting of the parliament's advisory body.

"We definitely want a government cash injection as the whole industry is suffering losses now," Kong said.

The comments come just two days after Kong said in an interview that he was not certain the company could turn a profit in 2009 as passenger traffic declines along with cargo volumes.

However, Kong said the beginning of 2009 was showing an improvement. The airline expected double-digit growth in revenues in the first two months of 2009 over a year earlier.