Air China to buy East Star
09 / 03 / 2009
AIR China is set to buy East Star Airline. The Chinese carrier is also in negotiations with Cathay Pacific and China Cargo Air – a subsidiary of China Eastern – to establish a joint venture cargo airline in Shanghai.
Kong Dong, chairman of Air China and general manager of Air China Group, said that the deal is almost finalised.
East Star has three A319-100s and six A320-200s operating on 10 routes from Wuhan, China. Estimates place East Air having a debt of 3.8 million yuan with Hangzhou Xiaoshan Airport.
The joint venture has been under way with Cathay Pacific for a while but China Eastern is a recent inclusion.