Yibin Wuliangye Group has invested $729.7 million in Sichuan Airlines Group to help it recover from pandemic-induced losses and boost the airline operator’s capital. As per sources, other shareholders are also expected to invest more to increase its capital of the airline.
Sichuan Airlines Group holds 40% stake in Sichuan Airlines while China Southern Airlines has 39% stake. China Eastern Airlines and Shandong Airlines both have 10% stake each.
In 2020, Sichuan Airlines reported a loss of CNY2.5 bn and CNY1.8 billion in 2021, as per the financial records. According to the data provided by Civil Aviation Administration of China (CAAC) in July 2022, China’s civil aviation industry reported a loss of $43.8 bn since the start of the pandemic. The CAAC handed over CNY3 billion bailout to each of Air China, China Eastern, and China Southern.