China Eastern Airlines (MU, Shanghai Hongqiao) has announced it will dispose of its remaining 5% stake in JoyAir (JR, Xi'an Xianyang) citing a lack of compatibility between the carriers. According to Reuters, the airline is looking to get at least CNY35 million (USD5.5 million) for the shareholding.
"We only have a 5% symbolic stake in Joy Air now," China Eastern's Board Secretary said. "And the carrier is not a good match for us in terms of market position or business model."
JoyAir was launched as a joint-venture between China Eastern and the China Aviation Industry Corporation I (AVIC) in 2008. However, in February 2009, China Eastern sold a 35% stake in the carrier which currently operates a fleet of nine MA-60s. Joy Air ended 2014 with a total debt of CNY1.1 billion (USD173.13 million), exceeding its total assets of CNY966 million (USD152 million).
