China Eastern Airlines (MU, Shanghai Hongqiao) is looking to raise up to CNY15 billion (USD2.4 billion) through a private placement of shares a disclosure to the Shanghai Stock Exchange has revealed.
In addition to paying off outstanding bank loans, the carrier plans to use CNY12 billion (USD1.93 billion) to acquire twenty-three additional aircraft including A321-200s, B737-800s, and B737-900(ER)s.
Earlier this month, fellow carrier Hainan Airlines (HU, Haikou) said it was planning to raise CNY24 billion (USD3.86 billion), also through a private placement, to pay for its fleet expansion plans, increase its stake in Tianjin Airlines (GS, Tianjin) subsidiary from 44.65% to 48.21%, and repay bank loans.
