China Eastern Airlines said it has applied for government permission to operate as an investment firm, a move that would allow it to reduce reliance on ticket sales and diversify into other businesses.
Wang Haitao, vice president of China Eastern's strategic development unit said that its airline business would remain its core business but the change would allow it to explore investment opportunities across the aviation sector.
China's travel boom has brought in large profits for its State-owned airlines but revenue per passenger has begun to fall due to fierce competition and slowing growth in traveler numbers.
China Eastern and rivals, Air China and China Southern Airlines, also face competition at home from a fast-growing high-speed rail network.
China Eastern Airlines said it has applied for government permission to operate as an investment firm, a move that would allow it to reduce reliance on ticket sales and diversify into other businesses.
