The parent of China Eastern Airlines, is likely to receive a capital injection of CNY2 billion yuan (USD$292.4 million) from the government, the official Shanghai Securities News quoted a senior official of the company as saying.

Li Jun, deputy general manager of the parent group China Eastern Air Holding, said the injection would bring the total government aid to CNY9 billion, but the move still needs approval from authorities.

China Eastern Airlines, one of the country's three biggest carriers, has received a capital injection of CNY7 billion from the government.

There is no timetable as to when the funds would be injected into the listed company, said Luo Zhuping, board secretary of China Eastern.

After years of robust growth, China's airlines face declining passenger demand and intensifying competition as the economy slows from the impact of the global financial crisis.

But Liu Shaoyong, chairman of China Eastern, said domestic air traffic could be on its way to recovery later this year.