Tag Archives: Wuhan

East Star Airlines Stops Flying

East Star Airlines, the troubled private airline based in Wuhan, has been grounded. Aviation authorities ordered the airline to stop flying because of its financial condition. It is unable to meet its aircraft leasing payments due to America’s GE, which is suing the Wuhan city government to recover them, Xinhua reports

The economic slowdown has caused a slump in travel that has hit the small group of private airlines in the country particularly hard as they aren’t getting bail-out help like the state-run carriers. China’s first private airline, Okay Airways, halted its passenger services indefinitely in December. East Star, which was running 20 flights a day, is likely to end up being taken over by state-owned Air China.

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