東星航空

Private carriers run into difficulties

When Lan Shili disappeared in March this year the fate of East Star Airlines, his fledgling privately owned carrier, was all but sealed.

Within days the heavily indebted East Star, which operated just 10 aircraft on regional domestic routes, was grounded by civil aviation authorities and, soon after, the company began bankruptcy and liquidation proceedings.

East Star executives told the Financial Times they believe Mr Lan was detained by local authorities and is still in custody today, but they cannot be sure and have no idea what charges he might be facing. The company is still in the liquidation process.

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