[Updated with capital share information]
The Macau SAR and Air China have approved a capital injection into Air Macau as a way to help the local airline face the economic impact the Covid-19 pandemic caused in the sector, newspaper Tribuna de Macau reported.
Although no exact amounts were mentioned by the report, the newspaper advance that the increase in capital could reach MOP2.2 billion (US$250.4 million), divided into the company’s two main shareholders and completed by the end of the year.
The Macau AAR holds 21.5 per cent of the airline, with Air China’s holding almost 67 per cent.
According to a dispatch published by the airline, the capital increase will be effected in two phases, with MOP1.8 billion raised by issuing 14 million shares at MOP100 per share, followed by a share issue for the remaining amount of 4 million shares also at MOP100 per share.
Each share option, which is reserved only for stakeholders, will last for 15 days, the board decision signed by administration board president, Zhao Xiaohang, states.
The decision was approved in the company’s general assembly and will be the third time since 2009 that the airline receives extra financial support from its stakeholders.
Air Macau reported MOP500 million in losses in the first half of this year as the pandemic led to a dramatic drop in passenger numbers.
The company’s exclusive concession has also recently been extended for three more years effective from November 9.