East Star ordered to suspend flights

The authorities have ordered a private airline to suspend operations yesterday because of debt owed to General Electric Co's aviation subsidiary amid a travel slump caused by global economic turmoil.

East Star Airlines, based in the central Chinese city of Wuhan, was told to halt flights as of yesterday, the city government said in a statement.

The economic slowdown has hurt all of China's airlines, but the country's handful of private carriers are particularly affected since they cannot count on the huge government bailouts that several State carriers are now seeking.