China Eastern Airlines' board has approved the provision of guarantees for four wholly-owned subsidiaries in the amount not exceeding 1 billion yuan.

The 10-year guarantee goes to China United Airlines, Shanghai Flight Training, Eastern Business Airlines Service and Eastern Technology, China Eastern said Tuesday in disclosures on the stock exchanges.

With expanding business scale, such as the LCC transformation of China United Airlines and the innovation in asset management by Eastern Technology, the four subsidiaries have increasing capital expenditure.

Therefore, the guarantee would enhanced the credit standing of the subsidiaries, reduce finance cost, and also secure facilities for their production and operation to facilitate their "healthy development", added the airline.

As of January 17, the accumulated amount of external guarantees granted by China Eastern and its majority-controlled subsidiaries amount to approximately US$23.6 million and 7 billion yuan, respectively.