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Air China Ltd and China Eastern Airlines Corp Ltd denied a report that the Chinese government will invest as much as 20 billion yuan (US$2.6 billion) in them and another carrier, the Shanghai Securities News reported, citing company officials.

 

Government officials haven't notified Air China of a planned investment, the newspaper reported on Saturday, citing Zheng Baoan, the carrier's board secretary.

 

An unidentified China Eastern official said the three airlines have applied for subsidies as fuel prices rose but haven't received a response from the government, the report said, according to Bloomberg News.

 

The Standard, a Hong Kong newspaper, on Thursday quoted an unidentified Air China official as saying the government will probably invest as much as 20 billion yuan in the three airlines to reduce their debt and boost profitability.

 

(Shanghai Daily January 17, 2007)