Southern China

As the the Asian fleet the largest, most developed route network airlines, CSA tightly around the goal of building an international scale network carriers strategic transformation, actively promote the three network construction as “hub routes network, sales and marketing network, service support network”, extensive brand service, strengthen the construction of information technology, to maintain the innovative edge. In 2011, the Group ranked first among all Chinese airlines in terms of its fleet size, flight routes network and volume of passenger traffic.

The Group has a network of flight routes with Guangzhou as the core hub and Beijing as a major hub, covering China and the rest of Asia and connecting Europe, America, Australia and Africa. The Company joined the SKYTEAM in November 2007. Up to the date of this report, the Group has established a network connecting 926 destinations of 173 countries and regions and covering major cities around the world. (CSA Annual report 2011, pg3) Better safety control By September, 2012, China Southern have kept a safe record of 10 million flying hours and carried close to 600 million passengers without incident.

The airline’s safety commitment has – and continues to be – unwavering both throughout China and globally. On September 28, 2012, China Southern was honoured with the Diamond Flight Safety Award by the Civil Aviation Administration of China (CAAC), becoming the leading Chinese carrier to maintain the highest safety records in China. “……. China Southern Airlines was honored five times with the “Golden Roc Cup” from the CAAC, this annual award representing the highest achievement in the areas of safety in China’s aviation industry” (ACN Newswire)

Culture of the organisation New Culture of CSA—talks about the mission for the company to make sure to “Let CSA to become customers’ preferred choice and become the connection between the China and the world The new culture of CSA has the power to gather people, attractive talent, improve people, creating better career for people, retaining the people.

After nearly 3 years of campaigning to spread and implementation of the “Southern culture”, CSA has improved the degree of recognition of common values of the Southern cultural ideas and increasing and enhance enterprise core competitiveness and build harmonious as CSA powerful ideological weapon.

The most modern fleet Currently, CSA operates more than 480 passenger and cargo transport aircrafts and the airline fleet is ranked among the world’s top six airlines (in terms of fleet size). CSA operates a wide-body aircraft fleet from five aircraft families including Boeing 777, 747, 757 & 737 and Airbus A380, 330, 321, 320, 319. The average age of the Groups registered aircraft was 6.

20 years as at the year end of 2011. This ensures that the flights are safe as the aircrafts are relatively new. 3. 2. 2 Weaknesses Complex structures and models of the fleet, high operating costs The company has 10 series, 18 models of aircraft, models and more complex structure of the fleet, because this aircraft maintenance costs, material costs, the crew re-training costs and other operating costs are relatively high, more models, and the complexity of the structure of the fleet is not conducive to aircraft resources, the unified deployment of crew resource.

“Fleet scale and typical disposition not only reflects an airline company’s strength, but also influences its competitiveness in the aviation market. As a large air transport group corporation, China Eastern Airlines optimized its fleet structure and adjusted its fleet scale step by step in a planned way on the basis of fast changing aviation market demand.

……” (Xiao Zhu, Xiao Lin, 2007) International routes operating result is not satisfactory, the heavy losses The company has been on international routes serious operating losses, the international routes losses last year about 6. 7 billion yuan, the Paris route losses of 120 million yuan and 110 million yuan loss Amsterdam route, Los Angeles route loss of 160 million yuan, Australia routes losses l billion, major line loss make a tremendous pressure on the company’s business.

Because CSA not only faces the competition of Air China, CEA, they also need to compete with foreign rivals including Singapore Airlines, United Airlines, Air France-KLM, as well as the rising star of the UAE. ONLY SIA have 10 flights daily between China and Singapore, and the Emirates Airlines has five flights between Beijing, Shanghai and Guangzhou and Dubai. “Development of international routes this year is still in a state of higher competition.

In addition to China Southern Airlines, Air China and China Eastern Airlines will not relax the development of the international routes. Because of other routes downturn, United Airlines, Air France-KLM, Singapore Airlines and Emirates will continue to establish themselves in China routes. ” (17u. net) “……Airline shares fell 3% in December 2011, a 14% decline in November, as a whole, down 40%. Airline shares fell almost reached the level of the economic recession in early 2009, regional airlines have been affected to varying degrees. ” (Xiuli Liu, 2012, CAN news)