China Eastern Says Aid Plan To Be Adjusted

China Eastern Airlines said on Thursday a share placement plan involving its parent firm, part of a CNY3 billion yuan (USD$439 million) government aid package, will be significantly adjusted and its domestic A shares will be suspended from trade in Shanghai until December 30.
The share placement was in exchange for cash injections that the group had received from the government as Chinese airlines grapple with a slowing economy.
China Eastern, one of the mainland's three major air carriers, said in a statement to the Shanghai Stock Exchange that China Eastern Air Holding Company intended to make material adjustments to a plan to subscribe to A shares in China Eastern but gave no further details.
China Eastern announced on Wednesday that it had received a CNY10 billion credit facility from Bank of Communications to help ease operational difficulties, as China's airlines confront a slowing economy.
Speculation has also intensified about a merger of China Eastern and Shanghai Airlines, with the official Shanghai Securities News reporting on Wednesday, citing unnamed sources, that a merger was expected to proceed soon, most likely after Shanghai Airlines received an injection of government aid.