China Eastern Airlines has raised 7 billion yuan (US$1 billion) with a sale of shares to its state majority owner. It is not clear whether the transaction merely executed previously unannounced additions to the airline’s capital or introduced a new phase of the recapitalization process that began late last year. As a result of this transaction, the government owns 75% of China Eastern, up from 60%. China Eastern shareholders’ funds have been negative over the past year, with debt exceeding assets on the balance sheet.

China’s new aircraft systems company will focus on building up its technology at home before seriously entering the global market and taking on the likes of Honeywell and Thales.

Qantas, the largest airline customer for the Boeing 787, has reached a deal with Boeing to cancel 15 of the 65 aircraft it had on order, and defer the first 15 deliveries. The airline blamed the industry downturn for the order changes, which have been under negotiation with Boeing for months. Qantas said in February that earlier program delays gave it the contractual right to cancel the first 15 units, and earlier this month CEO Alan Joyce admitted that both cancellations and deferrals were being discussed with Boeing.