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China Eastern agrees to sell 35% of Joy Air

(Agencies)
Updated: 2009-02-26 18:59

China Eastern has agreed to sell a 35 percent stake in regional carrier Joy Air Co Ltd to Aviation Industry Corp of China (AVIC), China Eastern Chairman Liu Shaoyong said on Thursday.

Related readings:  China Eastern shareholders approve $1b placement  China Eastern to stem fuel hedging losses  China Eastern expects profit in 3 years  China Eastern gets $1.46b credit line

AVIC, a State-owned aircraft maker, owns a majority of Joy Air, which is capitalised at 1 billion yuan ($146.3 million), while China Eastern holds a 40 percent stake.

Company sources had said China Eastern, one of the country's three biggest airlines, wanted to sell a roughly 30 percent stake in the regional carrier to bolster its strapped finances.

Liu was talking to reporters after a shareholders meeting.