By XUE Bingbing

Guilin Airlines has stopped selling tickets due to an ownership dispute between its two major shareholders, Hainan Airlines and Guilin Investment. 

Several days ago, Hainan Airlines sent a letter to Guilin Airlines, notifying them of the termination of services and agreements. On November 1, there was no answer from the Guilin Airlines 24-hour customer service hotline. 

The Guiling State-owned Assets Supervision and Administration Commission said on November 2 that the local government had formed a team to sort the issue out, but no further details of a plan of any kind were available. 

As the parent company of many small airlines, Hainan Airlines subsidiaries work in partnership with some local governments, including Guilin.

One of the smallest Chinese operators, Guilin Airlines has a fleet of 10 and has not acquired any new aircraft for over 5 years. 

In 2014, Guilin Airlines and Tourism Group was founded in a partnership between Hainan Airlines Group and Guilin State-Owned Assets. Guilin Airlines took all its crew members and technical staff directly from Hainan in the early days, along with board members, senior managers and engineers.

However, facing a liquidity problem, Hainan Airlines sold shares in several regional carriers, including Guilin and Guilin Investment, controlled by a local municipal body, taking over 60 percent of the airline.