SHANGHAI, CHINA - THE state parents of China Eastern Airlines and China Southern Airlines are likely to get government cash injections of 3 billion yuan (S$670 million) each to cope with high costs and weak demand, an official newspaper said on Monday.

Beijing may provide aid to the companies, two of China's three biggest airline groups, as part of a possible injection of cash into several big state-run firms, the Shanghai Securities News reported, citing an unnamed source.

Flag carrier Air China , China Eastern and China Southern all posted big losses in the third quarter due to a sharp slowdown in air traffic volume.

The carriers have cut unprofitable routes and China Eastern has grounded more than 20 planes, or roughly 10 per cent of its fleet, industry sources and local media have said.

A senior industry source told Reuters last month that the country's airline sector would most likely end up in the red in 2008 after years of robust growth.