The Chinese government provided Air China (CA) with a CNY1 billion ($156.7 million) capital injection to allow the carrier to increase its holding in Cathay Pacific Airways (CX), according to a statement from CA released by the Shanghai Stock Exchange.

CA and CX established a cross-shareholding deal in 2006. The most recent investment made by CA in the Hong Kong-based carrier was CNY6.34 billion in 2009 to expand its stake to 29.99%, making the Beijing-based carrier the second-biggest CX shareholder (ATW Daily News, May 12).

State-owned CA received CNY1.5 billion from the government in January 2010 to help it reduce its debt ratio (ATW Daily News, Feb. 23, 2010).
 

Source:atwonline