Air China parent CNAC intends to move forward with its acquisition of a stake in East Star Airlines despite the Wuhan-based carrier’s ‘strong opposition’ to its ‘forceful purchase.’
That was how the news started when published by ATWonline.
In fact. it was best to think of it as aviation foreplay.
On March 15 the story was released that East Star, one of China’s private airlines, was ordered to suspend flights because of prolonged financial and management problems.
The order was issued by the General Administration of Civil Aviation of China (CAAC)’s branch in charge of the country’s central and southern areas after the government of Wuhan City, capital of Hubei Province, submitted an application for the suspension.
Apparently the airline had failed to pay due plane rental fees to GE Commercial Aviation Services (GECAS), forcing the American firm to seek help from the local government since the second half of last year and was ready to start legal actions, Tan Sizhang, an official with the municipal traffic committee told Xinhua.
East Star was founded in May 2005, making it China’s fourth private carrier after Okay Airways, United Eagle Airlines and Spring Airlines.
The company, headquartered in Wuhan, flew its first flight on May 19, 2006. It has 10 rented planes, seven A320 and three A319, and operated more than 20 domestic passenger routes between key cities including Shanghai, Guangzhou, Hong Kong, Macao. It held about 10% of the market share in Wuhan.
All this and more from China View.
The latest news is Air China, the country’s biggest carrier by fleet size and passengers, said its parent company China National Aviation Holdings Co (CNAH) is in ‘preliminary talks’ with East Star Airlines about the possible acquisition. It will happen. There is just a lot of foreplay involved.