» Air China has applied to establish a branch in Hubei Province and will begin operations in Wuhan, said Kong Dong, the chairman. 

» The branch will pay for Air China's acquisition of East Star Airlines, a local airlines based in Hubei.

» East Star Airlines has already entered bankruptcy procedures as it failed to repay huge debts.

» Kong said that Air China may buy East Star assets, but it will not take over the company's debts.