Macau Daily Times - China support of Air Macau not confirmed
China support of Air Macau not confirmed
News from China indicates that David Fei, the company's CEO, did not get the full support Air Macau’s Sunday statement made believe.
The online edition of Air Transport World, a monthly magazine specialising in aviation, yesterday quoted Air China’s Board Secretary Huang Bin acknowledging “Air Macau's request for help”.
Huang said “CA will determine a solution with other NX [Air Macau] stakeholders, including TAP Portugal's SEAP investment fund (15 percent), casino company Sociedade de Turismo e Diversoes de Macau (14 percent), the Macau government and EVA Air. CA holds a 51 percent stake”.
The company statement said Air Macau has reached a strategic cooperation agreement with CA and that aid will be extended soon.
Air China had singed several cooperative agreements with Air Macau, the announcement said, and it will start special support to its subsidiary in the near future. But insiders pointed out that the assets of Air Macau were less than 5 percent of Air China's, according to Trading Markets.
The airline has not contributed much to the parent company's profits in these past years, Trading Markets added.
According to other media reports, Air China is believed to have sent letters to other shareholders calling for a meeting to address the financial stringency caused by high fuel costs. Air China is expected to buy out shareholders who are reluctant to commit further funds to the troubled carrier.
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Air Macau Lost 200mn Macao Dollars in H1
Air Macau Lost 200mn Macao Dollars in H1
MACAO, Jul 15, 2008 (SinoCast via COMTEX) --
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PowerRating -- Macao-based airways Air Macau Co., Ltd. suffered a loss of about 100 million Macao dollars in May and June 2008, due to surging oil prices, citing its announcement to its shareholders.
The loss reached more than 200 million Macao dollars in the first half of the year, compared to its registered capital of 400 million Macao dollars. And presently, the company is looking for injections from these shareholders like Air China Ltd. (SHSE: 601111, SEHK: 0753, PINK: AICAF and LON: AIRC), the controller.
If a company's loss, citing a local law, exceeds 50% of its registered capital, it can choose to enlarge or cut its capital, or announce bankruptcy.
Air China had singed several cooperative agreements with Air Macau, the announcement said, and it will start special support to its subsidiary in the near future. And insiders said that the assets of Air Macau was less than 5% of Air China's, and the Macao company did not contribute much to the parent company's profit these years.