Air Guilin has suspended all fights ‘until further notice’ according to reports.
The airline, in the province of Guangxi located in the south of the country first flew in 2016 and operated a small fleet of A319 and A320 aircraft. Guilin is a popular tourist destination in China and the carrier mainly carried sightseers to the region. It was formed as a sort of joint venture between Chinese business conglomerate HNA Group and the local Guilin Municipal Government.
However an argument over who owned the airline broke out between the two parties in 2021. HNA Group, like so many companies in aviation that were exposed to the effects of the pandemic, filed for bankruptcy during that year. A bail-out package to restructure the whole organisation was agreed with central government and Air Guilin received money from the Guilin Municipal Government.
As of the time of writing, no way forward has been found and , insofar as we can tell, neither party has issued a statement on the situation. The airline’s website remains live and apparently open for bookings.