As of 20081February 3 1 day, the total assets of East Star Airlines were 6,296110,000 yuan, and the liabilities were1032.79 million yuan, which was in a state of serious insolvency. East Star Airlines thus became the first bankrupt enterprise in China aviation industry.
The Dilemma of East Star Airlines;
Since its establishment, it has been plagued by capital turnover, and the global financial crisis that broke out last year brought a huge impact to the aviation industry, which made East Star Airlines worse and the problem of tight capital chain became increasingly prominent.
At the beginning of this year, China Air China, which is determined to enter the Central China market, signed a letter of intent for restructuring with East Star Airlines. However, in March, East Star Airlines refused to cooperate with Air China because the two partners could not agree on the purchase price. Two days later, the Wuhan Municipal Government filed an application and East Star Airlines was officially grounded.