Since the second half of 2008, some media have reported the tight capital chain of East Star Airlines for many times. On March 10, 2009, six companies, including General Electric Commercial Aviation Service Co., Ltd., submitted an application for bankruptcy liquidation of East Star Airlines to Wuhan Intermediate People's Court. On March/KOOC-0/4, 2009, at the request of the Wuhan Municipal People's Government, the Central South Regional Administration of Civil Aviation decided to suspend the operation license of East Star Airlines from 0: 00 on March/KOOC-0/5. On March 15, Lan Shili, Chairman of the Board of Directors of East Star Airlines, was controlled by the police when he tried to leave Zhuhai Airport, and was later taken back to Wuhan for small-scale residential surveillance. The case was handled by the economic crime investigation department of Wuhan Public Security Bureau. On March 30th, Wuhan Intermediate People's Court accepted the case that six companies, including General Electric Commercial Aviation Service Co., Ltd., applied for the bankruptcy of East Star Airlines Co., Ltd., frozen the account of East Star Airlines 16, and appointed the bankruptcy administrator composed of relevant personnel from Wuhan Legislative Affairs Office, Municipal Federation of Trade Unions, Municipal Communications Commission and other government departments to take over the bankruptcy affairs of East Star Airlines. On April 7, the bankruptcy administrator canceled the aircraft lease contract with GM and returned seven of the nine aircraft leased by East Star from GM to GM. The other two planes were stranded at Guangzhou Baiyun Airport and Zhengzhou Xinzheng Airport due to debts owed by East Star Airlines. On April 8, China Aviation Oil Co., Ltd., the largest creditor of China Eastern Airlines, and some other creditors filed a reorganization application with Wuhan Intermediate People's Court, expressing their willingness to provide all support, including funds, to help China Eastern Airlines go bankrupt and reorganize. On June 12, it was rejected again by Wuhan Intermediate People's Court. Subsequently, Cao appealed to the Hubei Higher People's Court, and submitted the East Star Airlines reorganization plan to the Hubei Higher People's Court on August 7, waiting for the final judgment of the Hubei Higher People's Court [1]. On August 25th, 2009, the Hubei Higher People's Court decided to cancel the previous ruling of Wuhan Intermediate People's Court that Li Xinzhong's application for reorganization of Dongxing was "inadmissible" and asked Wuhan Intermediate People's Court to accept the case again. Previously, eight applicants, including Cao, were all rejected by Wuhan Intermediate People's Court, but up to now, only some schemes have been ruled to be re-accepted. This means that East Star Airlines is expected to avoid bankruptcy liquidation and enter bankruptcy reorganization procedures, and Li Xinzhong may become the only entrant in this reorganization application. On August 26, 2009, Wuhan Intermediate People's Court made a final ruling: rejecting the applicant's application for bankruptcy and reorganization of Hubei Dongxing Group Co., Ltd., and East Star Airlines became the first bankrupt airline in China overnight. The efforts of many creditors to save this private airline were also forced to end. In April of 20 10, the court found that Lan Shili, the actual controller and director of East Star Airlines, still concealed and transferred the operating income and evaded the recovery of the tax arrears, knowing that the relevant departments had repeatedly urged him to pay the tax arrears, and instructed his relevant personnel to transfer and hide the operating income of more than 5 million yuan, which made it impossible for the tax authorities to recover the tax arrears of more than 50 million yuan. The court sentenced him to four years in prison at first instance. On the morning of May 9, 2065438+0/KLOC-0, the case of East Star Group, the parent company of East Star Airlines, v. Central and South Regional Administration of Civil Aviation was held in Guangzhou Baiyun District Court. This is also the first case of "people suing officials" in the civil aviation history of Chinese mainland. The lawsuit filed by East Star Group is against the public telegram issued by the Central and South Regional Administration of Civil Aviation on March 14, 2009. According to the cable, in order to safeguard public interests and ensure flight safety, according to the Letter from the General Office of Wuhan Municipal People's Government on grounding East Star Airlines flights, the General Administration decided to ground East Star Airlines flights. The next day, East Star Airlines began to stop flying until East Star Airlines was ruled bankrupt and liquidated. On February 28th, 2065438+0/KLOC-0, East Star Group held a press conference, claiming that a "grounding order" issued by the Central and South Bureau of Civil Aviation led to the bankruptcy and liquidation of East Star Airlines, and East Star Group was completely paralyzed. East Star Group decided to put the Central and South Bureau of Civil Aviation in the dock of the court. Dongxing Group believes that the Central South Administration of the Civil Aviation Administration made a decision to stop flying only by a letter without fully listening to the opinions of the parties and investigating and collecting evidence according to law. This practice violates the regulations, so the administrative punishment of requesting the court to decide suspension is invalid. The case was filed by Baiyun District Court on February 24th, 20 1 1. It is understood that this case is the first "people's accusation" case in Chinese mainland's civil aviation history. According to the introduction of East Star Group, in court, the core of the debate between lawyers of East Star Group and Civil Aviation Central and South Bureau was the basis of the Ming Chuan telegram of Civil Aviation Central and South Bureau about the grounding of East Star Airlines. After the first trial, the court will try again on another day. In March 2009, China Southern Bureau of Civil Aviation issued a grounding order to East Star Airlines, and then East Star Airlines went bankrupt and was completely paralyzed. In February this year, East Star Group filed an administrative lawsuit with Guangzhou Intermediate People's Court, demanding that the administrative punishment for grounding East Star Airlines made by China Southern Bureau be declared invalid on the grounds of violating the legal basis of administrative punishment. In the court, Yan, the attorney of East Star Group, believed that it was illegal for the Civil Aviation Central South Bureau to make a decision to suspend East Star Airlines only on the basis of the application of Wuhan Municipal Government. On the other hand, the Central South Bureau of Civil Aviation said that a series of accidents in early 2009 showed that East Star Airlines had potential safety hazards. According to Article 56 of the Safety Production Law, East Star Airlines was grounded. On March 14, 2009, the Central South Administration of Civil Aviation issued an Ming Chuan telegram, saying that according to the Letter from the General Office of Wuhan Municipal People's Government on Stopping East Star Airlines, the Administration decided to stop East Star Airlines flights. Yan said that the decision to stop flying only by notification letter violated the legal basis of administrative punishment, and also violated the three statutory conditions for stopping flying in the Civil Aviation Law. The Central South Bureau of Civil Aviation believes that East Star Airlines had many accidents in early 2009, including employees falling down. East Star Airlines has many problems in airworthiness flight, pilot stability, personnel training investment and company management process. Various problems of East Star Airlines have affected its safe operation. Yan said that although there were problems with East Star Airlines, it did not reach the point where it needed to be grounded, nor did it comply with legal procedures. According to the safety audit report of June 5438+February 65438+February 2008, the coincidence rate of East Star Airlines in the safety audit project is 94.6%. The judge of the Dispute Tribunal said that there are six main controversial issues in this case: First, whether East Star Group, as a shareholder of East Star Airlines, has the qualification of administrative litigation subject; Second, whether the prosecution time is within the statutory limitation of action; Third, whether the grounding decision made by the Central South Bureau of Civil Aviation is an administrative compulsory measure or an administrative punishment; Fourth, whether the factual basis for grounding is sufficient; Fifth, what is the legal basis of this administrative act; Sixth, whether the procedures for implementing the grounding decision are reasonable and legal. [3] In the trial of more than three hours, it became the core issue of the dispute between the two sides whether the Ming-chuan telegram that the Central South Bureau of Civil Aviation asked East Star Airlines to stop flying had sufficient legal basis and factual basis. Yan, the attorney of the plaintiff East Star Group, believes that the basis mentioned in this Ming Chuan telegram is only the letter from the Wuhan Municipal People's Government about grounding the flights of East Star Airlines. If the Central South Bureau of Civil Aviation does find that East Star Airlines has major security risks during the security inspection, it should be clearly stated in this telegram. It is predicted that the court judge will announce an adjournment at around noon 12: 30 on the 9th, and decide on another day. Lan Jianmin, assistant to the president of East Star Airlines, believes that East Star Group has a greater chance of winning the case. In this regard, the founder of a domestic private airline said that the Civil Aviation Administration grounded an airline for safety reasons, because the shortage of funds would really affect the safety of pilots and flights, so it is unlikely that East Star Airlines will win this lawsuit. You can listen to Sohu Weibo of East Star Group for details.