China Eastern Airlines plans to purchase a US$450 million stake in Juneyao Airlines, picking up an 8% stake in the smaller airline. The move follows a sale of more than 5% of its shares to Juneyao.

Juneyao aims to raise around 3.154 billion yuan by issuing a non-public offering of 169 million shares to China Eastern's subsidiary, the Eastern Airlines Industry Investment Co. Ltd.

The funds raised from the issuance will be utilized to acquire three B787s, purchase one spare GEnx-1B74/75 engine and repay bank loans.