China Eastern To Sell Remaining Joy Air Stake

China Eastern Airlines is seeking buyers for its remaining 5 percent stake in Joy Air, a small domestic airline that has been blighted by safety concerns over its propeller-powered planes.

China Eastern is asking for CNY35 million yuan (USD$5.5 million) for the stake. In February 2009, it sold a 35 percent stake in the airline based in the northwestern city of Xi'an.

"We only have a 5 percent symbolic stake in Joy Air now and the carrier is not a good match for us in terms of market position or business model," China Eastern's board secretary told Reuters news agency

Joy Air, which currently operates eight domestic routes, lost CNY151.6 million yuan in 2014, and ended last year with total debt amounting to CNY1.1 billion, exceeding its total assets of CNY966 million, according to a statement, posted on the China Beijing Equity Exchange.

The Chinese-made MA-60 aircraft in Joy Air's fleet have been involved in several accidents over the past few years.

In May, the entire wing section broke off from the fuselage of a Joy Air MA-60 during a hard landing at Fuzhou airport in southeast China.