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BoCom offers credit to airline
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The Bank of Communications yesterday offered a credit line of 15 billion yuan (US$2.2 billion) to China Southern Airlines in a latest support to the country's ailing aviation industry.

The two parties will seal a long-term strategic relationship and cooperate in aircraft leasing, aircraft financing, lending and bills, BoCom said yesterday.

BoCom will also offer investment banking, private banking and global cash management to the Shanghai-listed airline, it said.

"The aviation industry is always one of the key sectors for our bank. China Southern, as a major industry player, is one of our key clients," said Shanghai-based BoCom.

China's airlines flew into the red last year as they face huge losses as travelers cut their travel budgets amid an economic slowdown. The top three domestic airlines - China Southern, Air China and China Eastern - posted a combined loss of 28 billion yuan last year.

"Though the airline industry is losing money, the industry has a big growth potential amid China's long-term economic growth," Qian Wenhui, executive vice president of BoCom, said last month.

(Shanghai Daily May 7, 2009)

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