China Southern Airlines to join Skyteam Cargo in 2010

With full membership in SkyTeam Cargo expected before November this year, China Southern Airlines will become the first Chinese carrier to join a global air cargo alliance.

"This move into SkyTeam Cargo exemplifies the vitality of China's air cargo industry, following its passenger transportation business and marks an important step forward towards the internationalization of the Chinese civil aviation industry," said Mr. Luo.

SkyTeam Cargo was founded in 2000 and today is the world's leading air cargo alliance. Since then it has seen exponential growth and now offers customers over 10,000 flights a day to more than 130 countries between seven partners: Aeromexico Cargo, Air France Cargo, Alitalia Cargo, Czech Airlines Cargo, Delta Cargo, KLM Cargo and Korean Air Cargo. Since 2005 SkyTeam Cargo was presented the awards for the Best Air Freight Alliance during the Asian Freight & Supply Chain Awards (AFSCA) Ceremony each year.

"Following their initial SkyTeam passenger membership we very much welcome the decision of China Southern Airlines to join the cargo part of the alliance this year. China Southern becomes the eighth member in the cargo alliance and with their largest network in China extending our strategic growth and network cooperation opportunities on offer to our customers," said Air France-KLM Cargo Vice President Alliance and Chairman of SkyTeam Cargo Executive Board Mr. Chong Choy.

China Southern Cargo operates two Boeing 747-400 freighters and two state-of-the-art Boeing 777-200 freighters. By the end of 2011, China Southern Cargo will have expanded its fleet to eight freighters with the introduction of four more Boeing 777-200Fs.

China Southern Cargo offers all-cargo services from Shanghai Pudong International Airport to Amsterdam, Frankfurt and Chicago with plans to launch new inter-continental freighter services from Pudong (or Guangzhou Baiyun International Airport) to Vienna, New York, Dallas and other major destinations across Europe and North America. China Southern Airlines, with the largest fleet and the most extensive network in Mainland China, provides "belly" cargo services that span all of China, radiating throughout Asia and with convenient connections to all major cities in Europe, North America, Australia and Africa.

"Since its passenger membership into the SkyTeam Alliance on November 15, 2007, China Southern Cargo has been working to narrow the gap in all areas between itself and the Alliance. In accordance with SkyTeam's management concepts, management expertise and service standards, China Southern has been vigorously engaged in safety auditing, fleet renewal and expansion, hub network development, product range establishment, service procedure improvement, information reconstruction and product branding," added Mr. Luo.

China Southern's membership into SkyTeam Cargo is part of the Chinese civil aviation industry's strategy of internationalization. Under the climate of deepening globalization, this initiative follows the trend of alliances and liberalization in the global air transportation industry. It reflects the market awareness and business acumen China Southern Cargo has to participate in international cooperation and competition.

SkyTeam Cargo membership for China Southern Airlines will help enhance the international competitiveness of China's air cargo industry by following world-class standards and accelerating the internalization of the Chinese civil aviation industry.