Airline sues agency for questionable grounding

GUANGZHOU - The parent company of a bankrupt Chinese private airline sued the government's aviation agency on Monday for what it deemed to be an improper grounding of the company's planes.

The company said that decision led to its bankruptcy following the 2008 global financial crisis.

A court in South China's city of Guangzhou heard the case, which is being directed by the East Star Group against the Civil Aviation Administration's Central and Southern Administration. The group is the parent company of East Star Airlines, which went bankrupt in August 2009 after a restructuring plan failed to keep the company afloat.