东星航空

East Star chief goes missing

The head of a privately owned Chinese airline has disappeared after talks on a takeover by state flag carrier Air China broke down and Beijing grounded its fleet.

The case is raising fears of a trend towards re-nationalisation in some sectors in China as state groups use their clout to swallow struggling private competitors.

China's civil aviation authority suspended operations of East Star Airlines, a private regional airline, over the weekend, a day after East Star made a public statement that it was no longer for sale and alleged it had been subjected to strong-arm tactics in negotiations with Air China.

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