China Southern Airlines to move long-haul focus from growth to sustainability and partnerships

Asia's largest airline, China Southern Airlines, is entering the home stretch of an ambitious strategy to boost its international network and shift reliance away from its domestic market. The largest of China's major carriers, China Southern sees its 2014 launch to Frankfurt and New York as capping off a network that has grown rapidly in Australia, as well as adding London.

International RPKs comprised 20% of China Southern's network in 2013 for the first time, up from 14% in 2010. International revenue has lagged, comprising 17% of 2013's passenger revenue, up from 13% in 2010. This is not entirely a success story. Its A380s do not have enough markets to reach. Sustainability lags, and China Southern's growth has often created over-capacity.

This is recognised by Chairman Si Xianmin, who has pledged to bed down markets and add more partnerships, including outside of its SkyTeam alliance, following a deal with Qantas. But China Southern's eyes are still very much on long term success and not immediate results. As Mr Si said, "If you want to look into the future, look to the long-term."