Air China is expected to establish a branch company in Wuhan, capital of Hubei Province, following the collapse of parent CNAC's deal with East Star Airlines. East Star suspended operations in March and went bankrupt after its decision not to partner with CNAC (ATWOnline, March 31), and now Air China plans to purchase assets including East Star's routes and slots. It intends to rehire East Star staff. "We have applied to CAAC to establish our branch company in Wuhan owing to the failure of ...

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