China Southern Airlines reportedly reported loss from the carrier’s A380 operation in 2012 between CNY150 million (USD23.4 million) and CNY200 million (USD31.3 million), according to The Economic Observer. The carrier is scheduled to take delivery of its fifth and final A380 at the end of Feb-2013.
China Southern Airlines A380 loss reached up to USD31m in 2012: report
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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.”
Birmingham Airport shows the value of marketing, to deliver the first UK non-London Chinese flights
The UK's Birmingham Airport has won the race to be the first UK non-London airport to host direct flights to and from China.
The services will connect Birmingham and Beijing. They will be operated by China Southern Airlines, and while the modest programme may be charter only and operate over a short summer period, this victory for the UK’s seventh largest airport by passenger numbers throws down the gauntlet to other regional airports to match its ambition.
The operation also goes some way to demonstrating that Birmingham’s submission to the Airports Commission on future UK airport capacity, in which it perceived a greatly enhanced national role, has both teeth and legs, coming as it does on top of confirmation of other long haul route start ups that coincide with the opening of a runway extension in Apr-2014.