Macau: Air China announces increase of US$50 million in the share capital of Air Macau

2 June 2009

Macau, China, 2 June – Air China announced an increase in the share capital of Air Macau up to the amount of 400 million patacas (US$50 million), after having reduced its capital to 1 million patacas to cover losses, according to a statement Air China published on the Hong Kong Stock Exchange.

The capital increase, approved on 15 April though only publicly announced today, will be carried out in two stages, the first of which will be reserved for current shareholders and is valued at 199 million patacas.

The second stage will increase Air Macau’s share capital from 200 million patacas to 400 million patacas, and will be subscribed in total by the Macau government or by an entity appointed by the government.

The audited annual accounts of Air Macau for the year ended 31 December 2008 reflected a net asset value of approximately 107.3 million patacas.

In 2008 Air Macau posted a loss of more than the 109 million patacas (US$13.6 million) posted in 2007, said the airline’s chairman Zhao Xiaohang in March.

A few years earlier, in 2005, Air Macau posted a loss of 20 million patacas, which increased to 62 million patacas in 2006.

Air Macau’s shareholders are China National Aviation Corporation (51 percent) – which is part of the holding company managed by Air China – and SEAP – Serviços, Administração e Participações, which includes TAP Portugal and Banco Nacional Ultramarino (20 percent), Sociedade de Turismo e Diversões de Macau (14 percent) and, 5 percente each for the Special Administrative Region of Macau and Taiwan air carrier Eva Air and a group of small private investors.

Air Macau flies to Beijing, Shanghai, Ghendu, Guilin, Kunming, Nanjing, Hangzhou, Changsha, Guiyang, Shenzhen, Haikou, Sanya and Xiamen on mainland China, Taipei, Kaohsiung and Bangkok, Seoul, Pusan and Manila, respectively in Taiwan, Thailand, South Korea and the Philippines.

Air Macau has 13 Airbus passenger aircraft of the A321, A320 and A319 models and 4 cargo aircraft. (macauhub)