The owners of insolvent Air Macau, including Air China, will rescue the beleaguered carrier with an equity capital injection of 507 million Macau patacas (US$63 million). The move shows some confidence that the carrier can prosper with a new strategy of focusing on services to Japan and South Korea — or at least that there is value in the concession that gives it a monopoly as a Macau-based airline.

Air New Zealand will cut capacity by 3% in its financial year to June 30, 2010, in response to continuing weak demand. The carrier will make the cuts in its service between Hong Kong and London, which will fall to five from seven days a week, and on domestic routes. Up to 80 staff positions will be abolished.

Ailing China Eastern Airlines has attracted more government capital, this time in the form of provincial funding for its operation in the Yunnan region, in the south of the country. The deal to turn the carrier’s local branch into a joint venture with the Yunnan provincial government will also help the group fight rising competition in the important tourism region.