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China Southern to join global alliance
By Zhan Lisheng (China Daily)
Updated: 2004-08-30 09:02

China Southern Airlines, one of the nation's top carriers, signed an agreement on membership of the SkyTeam alliance at the weekend.

Founded in 2000, SkyTeam is one of the world's leading global airline alliances. It includes Aeromexico, Air France, Alitalia, CSA Czech Airlines, Delta Air Lines and Korean Air.

Major carriers KLM Royal Dutch Airlines, Continental Airlines and Northwest Airlines will also sign up later this year.

It is a significant move by China Southern as it is the first Chinese airline wishing to join the international airline alliance.

The agreement lays the groundwork for China Southern to officially join the alliance, once it fulfills SkyTeam's quality standards.

China Southern will hopefully become a full member of the alliance in two years.

"The agreement signing event marks a milestone in China's civil aviation industry," said Yang Yuanyuan, minister of the General Administration of Civil Aviation of China.

"The attempt displays the initiative of China's civil aviation industry in international aviation co-operation."

The minister encouraged other Chinese airlines to seek memberships in global aviation alliances to optimize their route networks, improve services and sharpen competitive edge in the global market.

China Southern Chairman Yan Zhiqing said joining SkyTeam would be an important step for China Southern to adapt itself to the needs of further reforms and opening to the international community and as an effective way to strengthen its international co-operation and sharpen the competitive edge in the global aviation market.

As a member, China Southern will be able to expand and optimize its global route network, diversify its marketing and sales channels and enhance safety, operational, management and service levels.

China Southern currently runs 43 global routes, connecting some 20 cities around the globe.

China Southern has already forged a close relationship with SkyTeam members.

It signed the first ever code-sharing pact in the nation's aviation history with Delta Air Lines in 1997; it joined hands with Air France in January to launch Guangzhou-Paris service under a code-share arrangement; it initiated a code-sharing arrangement with Korean Air in August; and it had joined forces with KLM Royal Dutch Airlines, another would-be SkyTeam member, in both passenger and cargo services.

With the membership, China Southern Airlines' passengers will benefit from the mileage awards on any SkyTeam operated flight, access to 340 member lounges globally, around 8,000-odd daily flights to 500-odd destinations worldwide, more fare options and one check-in process for multi-leg flights.

Both Cho Yang-ho, chairman and CEO of Korean Air, and Jean-Cyril Sphinetta, chairman and CEO of Air France, shared the view that China Southern's participation will help SkyTeam further facilitate the members' flight arrangements to China, offer its passengers greater access, more choices and greater convenience to China, thanks to China Southern's new hub base at the new Guangzhou Baiyun International Airport, which began operation earlier this month, and its dense and extensive domestic route network of 286 routes to 64 cities nationwide.

And China Southern's participation will better position SkyTeam members to tap the aviation bonanza in China, they said.

Official statistics indicate that China's airline companies entertained 55 million passenger/times in the first half of this year, up 30 per cent from a year ago.

And they carried 87.59 million passenger/times and handled freight of 2.19 million tons last year despite the impact of the SARS (severe acute respiratory syndrome) outbreak in the first half of 2003, up respectively 1.9 per cent and 8.4 per cent from 2002.

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