China Southern Airlines Company Limited (simplified Chinese: ; traditional Chinese: ) (SSE: 600029, SEHK: 1055, NYSE: ZNH) is an airline headquartered in Baiyun District, Guangzhou, Guangdong Province, People's Republic of China. It is the world's sixth-largest airline measured by passengers carried, and Asia's largest airline in terms of both fleet size and passengers carried. It is also the fourth-largest airline in the world in domestic passenger traffic and the sixth-largest in scheduled domestic passenger-kilometres flown^{[citation needed]}. From its main hubs at Guangzhou Baiyun International Airport, Chongqing Jiangbei International Airport, and Beijing Capital International Airport, the airline flies to 121 destinations using a fleet of 422 aircraft.

China Southern Airlines was established on 1 July 1988 following the restructuring of the Civil Aviation Administration of China. Since then, the airline acquired and merged with a number of domestic airlines, becoming one of China's "Big Three" airlines (alongside Air China and China Eastern Airlines).^[2] China Southern Airlines is a member of SkyTeam.^[3] The airlines's logo is a red kapok on a blue vertical tail fin.

In 2010, China Southern Airlines carried 76.5 million domestic and international passengers with an average load factor of 79.2%. The airline reported a net profit of CNY5.8 billion ($883 million) in 2010.^[4]

History and development [edit]

Founding [edit]

China Southern Airlines was established in 1988, following the government's decision to split the operating divisions of Civil Aviation Administration of China (CAAC) into separate airlines.^[5] The CAAC was restructured in late 1984 and divided into four major airlines,^[6] among which was China Southern Airlines, which became a separate identity on 1 July 1988.^[6] with operations starting in 1989. Although controlled by the CAAC, China Southern quickly established relationships with Western companies; in 1990, it launched a maintenance joint-venture with Hong Kong-based Hutchison Whampoa and Lockheed called Guangzhou Aircraft Maintenance Engineering Co. (GAMECO).^[6] During 1991, six million passengers were carried, and with 38 Boeing jet airliners, China Southern was serving 90 domestic cities and 17 international destinations.^[6] In 1992, the airline raised US$537 million in revenue, and posted a $102 million profits; on 17 December 1992, China Southern also signed an order for six Boeing 777s, split between four standard 200 series and two longer-range 200ERs.^[7] China Southern, along with a number of Chinese airlines, was granted financial independence during the year, with a resultant drawback being the purchase of fuel and airport fees.^[6]

Foreign investments [edit]

In 1994, the Chinese government opened the possibility foreign investments in its airlines; China Southern and United Airlines quickly started talks on the matter. To raise its operating standards and distance itself from mostly unprofitable second- and third-tiers domestic airlines, the carrier signed agreements with a number of U.S. carriers regarding staff training and aircraft maintenance, with the ultimate aim of being listed on the New York Stock Exchange.^[6] Revenue for the year doubled, although profits did not increase significantly due to the costs associated with the airline's growth.^[6]

The first of the six Boeing 777s arrived on 28 December 1995,^[7] making China Southern Airlines the first Asian carrier to operate the type.^[6] Its first long-haul route, GuangzhouBeijingAmsterdam, was launched in 1996.^[8] The following year, China Southern was the first to place its Boeing 777s into non-stop services across the Pacific Ocean, connecting Guangzhou and Los Angeles. Three years later, Boeing 777's were deployed to Sydney and Melbourne.^[8] Despite the airline's effort on raising international capacity from the start, domestic traffic made up 80% of the airline's revenue.^[6] As a result, it signed a codeshare agreement during the mid-1990s to further increase international traffic.

In order to keep pace with fast developments, China Southern Airlines entered the capital market to optimise its financial structure. The airline is successfully listed on the Hong Kong and New York Stock Exchanges in July 1997, raising $600$700 million.^[6] It followed up in 2003 at the Shanghai Stock Exchange.^[9]

Mergers and acquisitions [edit]

In July 2000, the CAAC announced that the ten airlines under its direct management will be merged into three airline groups, revolving around Air China, China Eastern Airlines and China Southern itself.^[10] On 4 August, China Southern absorbed Zhongyuan Airlines. The following year it acquire China Northern Airlines and China Xinjiang Airlines.^[11] In 2004, the merger was completed. As a result, China Southern Airlines became one of the "Big Three" carriers in the country. Since then, it has successively took over shareholding stocks and joined the equity in numerous Chinese carriers. The airline is the major shareholder of Xiamen Airlines (51%) and Chongqing Airlines (60%). It also invests in Sichuan Airlines.

On 29 September 2003, the airline placed an order with Airbus for 4 Trent 700-powered Airbus A330-200s, to be delivered from 2005. This was part of the order placed in April by the China Aviation Supplies Imp. & Exp. Group covering 30 aircraft.^[12] The first example was delivered on 28 February 2005,^[13] thereby giving China Southern the title of the first mainland Chinese A330 operator. One month earlier, on 28 January 2005, the airline placed a commitment order for 5 Airbus A380-800s, becoming the first Chinese airline to so, with delivery in time for the 2008 Summer Olympics. Ironically, PRC officials also placed an order for 60 7E7s on the same day for six airlines.^[14] The aircraft would be delivered between 2008 and 2010.^[15] However, due to delivery delays, the aircraft was not delivered in time for the Olympics and as of May 2010, the first of the aircraft are scheduled to arrive sometime in 2011. Boeing used the event to official designate the aircraft the Boeing 787.

On the same day, a China Southern Airlines Boeing 777200 originating from Guangzhou Baiyun International Airport landed in Taipei, becoming the first mainland Chinese to land in the Republic of China since 1949,^[16] when the Kuomintang were involved in the war with the Communist Party of China. The flight carried 234 passengers home after the Lunar New Year. Within three years, in July 2008, a China Southern Airlines Airbus A330 carrying 230 tourists^[17] again landed in Taipei.^[18] The governments of the two countries agreed to allow directs flights between the countries in June, ending six-decades of limited air travel between the two Chinas. Following the flight, China Southern Airlines Chairman and pilot of the flight, Liu Shaoyong,^[17][18] said, "From today onward, regular commercial flights will replace the rumbling warplanes over the skies of the Taiwan Strait, and relations between the two sides will become better and better.^[17] "

On 6 September 2005, China Southern Airlines along with CASGC placed an order for a further 10 Airbus A330 wide-body airliners: 8 A330-300s and 2 A330-200s. Aircraft deliveries were due to begin in December 2007 and continue through 2008.^[19] It followed up with another Airbus order on 7 July 2006, when it confirmed a deal covering the purchase of 50 more A320 narrowbodies for delivery from 2009.^[20] The order included 13 A319-100s, 20 A320-200s and 17 A321-200s, reportedly worth $3.3 billion at list price.^[21] In December 2005, China Southern Airlines along with CASGC, announced an order with Boeing for 9 Boeing 737-700s and 11 Boeing 737-800s.

In June 2006, China Southern Airlines confirmed another order of 3 Boeing 737-700s and 7 Boeing 737-800s. The deliveries would continue through 2010.^[22] On 18 October 2006, China Southern Airlines placed an order for 6 Boeing 777 freighters, striding forward a brand new step in its cargo development.^[23] The aircraft would be delivered from November 2008 to July 2010.

On 20 August 2007, China Southern Airlines announced its intention for an order of 25 Boeing 737-700s and 30 Boeing 737-800s, which will be delivered from May 2011 to October 2013.^[24] It was a mere two months before, on 23 October 2007, China Southern Airlines announced that it had placed an order for 10 additional Airbus A330-200s. The order has a listed price of US$1.677 billion and the aircraft will be delivered from March 2010 to August 2012.^[25]

Recent developments [edit]

During 2009, the airline remodeled its strategy from a point to point hub to a full hub and spoke carrier, which has been proven successful. Along with that, China Southern Airlines has rapidly expanded its international market share, especially in Australia, where passenger numbers in 2011 has been 97% greater than that of 2010.^[26]

On 21 January 2010, China Southern Airlines announced an order for an additional 20 A320-200s scheduled for delivery from 20112013 due to the falling fuel costs and surging passenger demand.^[27]

In March, the Chinese carrier issued new shares in Hong Kong and Shanghai 2010 to raise 10.75 billion yuan^[28] ($1.57 billion) in a bid to pay off outstanding loans.^[29] In December, CNY810 million ($121.5 million) was injected by China Southern Airlines into its subsidiary Xiamen Airlines to fund its fleet expansion.^[30]

In November 2010, China Southern Airlines signed an agreement with Airbus for the purchase of six A330s and 30 A320s200. The specific variant of A330 is not identified.^[31]

On 11 January 2011, China Southern Airlines announced a lease for 10 Embraer E-190 to be delivered from the second half of 2011.

On 27 January 2011, China Southern Airlines was awarded the four star ranking by Skytrax. It is currently the largest 4 star airline to hold this title.^[32]

On 15 June 2011, China Southern Airlines made its inaugural flight to Vancouver, Canada opening up a new passenger and trade routes including China Southern Cargo's first flight on on 5 July 2011.

On 17 October 2011, China Southern Airlines made its first flight with the Airbus A380.

On 6 June 2012, China Southern Airlines inaugurated its first flight from Guangzhou to London, also known as the "Canton Route". The opening frequency is reported to be three times weekly. China Southern Airlines launched as part of its aggressive expansion in Australia, as well as to compete in the kangaroo route along with other carriers Qantas, Singapore Airlines, Emirates, and Malaysia Airlines.^[33]

During MayJune 2012, China Southern Airlines has recruited Dutch flight attendants to serve the First and Business class sections of the Guangzhou to Amsterdam route.^[34]

Corporate affairs [edit]

China Southern is headquartered in Baiyun District, Guangzhou, Guangdong Province, People's Republic of China.^[35][36][37]

China Southern plans to open a new headquarters facility on a 988-acre (400 ha) site on the outskirts of Guangzhou, about 4 miles (6.4 km) from Guangzhou Baiyun International Airport. Woods Bagot won a competition for the architect firm which would design the facility. The proposed site consists of two parcels of land on opposite sides of a highway leading to Baiyun Airport; both sites are shaped like wings. The site will have a bridge and light rail system that operates above the highway in order to connect the two parcels, which will each have distinct functions. For instance, the east parcel will house internal functions such as the data center facilities, staff dormitories, and the training center. The airline wants the site to be aesthetically pleasing from the air since it sits below a runway approach. The site will have a lot of outdoor space, which Woods Bagot designed along with Hargreaves Associates and Sherwood Design Engineers. Jean Weng, a Woods Bagot Beijing-based principal, said "Most Chinese cities are very dense and very urban, but China Southern wants to create a human-scale campus, thats close to nature."^[38]

Destinations [edit]

China Southern Airlines flies to 169 countries worldwide, including code-share destinations.^[9] It maintains a strong presence in the domestic market, with its main hubs being Guangzhou Baiyun International Airport, Chongqing Jiangbei International Airport, and Beijing Capital International Airport, along with other focus cities in Changchun, Changsha, Dalian, Shenyang, Shenzhen, Ürümqi, Wuhan and Zhengzhou. The airline plans to continue to develop Chongqing and Ürümqi as hubs as well to exploit the domestic market potential.^[39]

China Southern currently offers 485 flights a day from its Guangzhou hub and 221 for its Beijing hub.^[26] The airline provides services to 65 international destinations. Most of the international flights link between Guangzhou and world cities. There are also plenty of international flights operated through Beijing, Urumqi (notably to Central Asia) and Dalian (to Japan, South Korea, and Russia). China Southern Airlines has developed an extensive network to Southeast Asia and also has become the Chinese airline with the largest presence in Australia.^[40] China Southern is also considering expanding into the South American markets, as well as further expansion into the African market.^[33]

Alliance [edit]

On 28 August 2004, China Southern Airlines signed a Memorandum of Understanding with the airline alliance SkyTeam. On 15 November 2007, the airline was officially welcomed as the 11th member of SkyTeam, becoming the first mainland Chinese airline to join any global airline alliance,^[41] expanding the alliance's presence on mainland China.

Codeshare agreements [edit]

The airline has also codeshare agreements with the following airlines, beside SkyTeam member:

Fleet [edit]

China Southern Airlines fleet consists of the following aircraft (as of June 2011):^{[citation needed]}

A380 [edit]

China Southern Airlines is the first airline in China to order Airbus A380. The airline put these aircraft on Beijing-Hong Kong and Beijing-Guangzhou routes. However, these domestic services struggled be profitable, and due to the demand limitation of the airlines' international hub Guangzhou Baiyun Airport, few routes from Guangzhou have the demand to support an A380. In effort to make its A380s viable, China Southern recently started operating A380 on its Guangzhou-Los Angeles route and will commence an A380 on the Guangzhou-Sydney route from October 27, 2013.^[45]

Cargo [edit]

China Southern Cargo is the cargo subsidiary of China Southern Airlines. The cargo airline provides services between mainland China and North America, Europe, and Australia, where destinations such as Amsterdam, Anchorage, Chicago, Frankfurt, Los Angeles, Vancouver, and Vienna are served from its main hub at Shanghai Pudong International Airport, with cargo flights to Amsterdam and Milan from Guangzhou Baiyun International Airport. The cargo subsidiary has joined the SkyTeam Cargo alliance in November 2010.^[46]

Historic fleet [edit]

China Southern Airlines has previously operated the following aircraft.

• Airbus A300-600
• ATR 72
• Boeing 737200
• Boeing 737500
• Boeing 767-300ER
• McDonnell Douglas MD-82
• McDonnell Douglas MD-90
• Saab 340

Services [edit]

Cabins [edit]

China Southern Airlines offers Premium First Class on select flights, such as on the Beijing Capital International Airport- Guangzhou Baiyun International Airport route. This cabin offers more amenities and is more spacious than Regular First Class.

Premium Economy class

China Southern offers Premium Economy class, which is more spacious than Economy class. The seats are 3537 inches (8994 cm), compared to 31 inches (79 cm) in Economy.^[48]

Sky Pearl Club [edit]

China Southern Airlines's frequent-flyer program is called Sky Pearl Club (simplified Chinese: ; traditional Chinese: ). The Sky Pearl Club allows its members earn FFP mileage not only flying China Southern domestic segments but also on flights of other SkyTeam member airlines within the SkyTeam global network. Additionally, Sky Pearl Club members can 'earn and burn' mileage on partnered Sichuan Airlines and China Airlines' flights. The mileage earned on the above mentioned flights can be counted into Elite Qualifying Mileages (EQM) and Elite Qualifying Segment (EQS), enabling quick access to SkyTeam elite status. Membership of Sky Pearl Club is divided into two tiers: Sky Pearl Gold Card and Sky Pearl Silver Card.^[49]

Incidents and accidents [edit]

• On 2 October 1990, a hijacked Xiamen Airlines Boeing 737 crashed into a China Southern Airlines Boeing 757, killing 128 people from both aircraft. See Guangzhou Baiyun aircraft collision
• On 24 November 1992, Flight 3943, a Boeing 737 jetliner (Registered B-2523), crashed into a hill near Guilin, Guangxi, killing all 141 on board, due to an engine thrust malfunction.^[50][51]
• On 8 May 1997, Flight 3456, a Boeing 737300 jetliner (registered B-2925), crashed on approach into Shenzhen Bao'an International Airport killing 35, with 9 injured.^[52]
• On 22 August 2006, flight CZ325 from Guangzhou, China to Sydney, Australia had to be turned back to Guangzhou after a note had been found indicating a bomb was on board. The plane was returned to Guangzhou after one hour into the flight. Passengers were interviewed by police for two hours after landing, after which they were allowed back onto the plane to resume their journey. A 39-year-old Australian businessman of Hong Kong origin was arrested after Chinese police matched his handwriting with that of the threatening note found in the lavatory. He was alleged to have told police that he had made the threat because he was lovesick and suffering from depression over a failed relationship, the Xinhua news agency was quoted as saying.^[53][54]
• On 7 March 2008, an attempt to hijack and crash a flight en route to Beijing from Urumqi was averted when the crew found a 19-year old Turkic woman trying to spill gasoline in the toilet. The pilot made an emergency landing at Lanzhou Airport and two passengers were arrested.^[55]

See also [edit]

• Aviation
• Aviation industry in the People's Republic of China
• List of airlines of the People's Republic of China
• List of airports in the People's Republic of China
• List of companies of the People's Republic of China
• Transportation in the People's Republic of China

References [edit]

External links [edit]

• China Southern Airlines Global Website
• China Southern Airlines
• China Southern Airlines Xinjiang Branch (Chinese (PRC))