Air China plans to raise up to $1.1bn through a private share placement to fund new aircraft and boost working capital. This will include the purchase of 17 aircraft, potentially six C919s and eleven ARJ21-700s, to be delivered in 2024 and 2025.
The airline intends to issue new shares to China National Aviation Holding, its major shareholder which already owns 50.14pc of Air China’s issued stock.
The remaining funds from the share issuance will be used to replenish working capital, improve the capital structure, and enhance the company’s financial health and market confidence. The issuance is still subject to shareholder and regulatory approval.
