民营航空

China's private airlines facing cross-winds

Being the boss of a privately owned airline has become quite hazardous in China over the past year as the battered aviation industry undergoes a state-led consolidation.

A year ago, Lan Shili, the flamboyant owner of tiny East Star Airlines, disappeared in the midst of acrimonious merger talks with Air China, the state-controlled flag carrier. Government officials later said they knew exactly where he was but would not comment further.

In December, privately owned Shenzhen Airlines, the country's fifth-largest carrier, said its majority shareholder, Li Zeyuan, was under investigation for unspecified “economic crimes”. Two weeks ago it revealed that Li Kun, its president, was also under investigation and the airline is now under the control of executives from Air China, its second-largest shareholder with a 25 per cent stake.

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