The Aviation & Maritime News Centerpiece
of ILIPS Group International

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Aviation & Marine USA

www.aviationandmarineusa.com

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May, 2009

Updated May 26, 2009

Travel News

China Southern Boeing 777-200ER /ETOPS

Photo: M. Daniels / ILIPS Group International

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(a joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 00753)


Air China Ltd.

Announcement relating to the reply to the comments
of the Shanghai Stock Exchange on the
2008 Annual Report (A shares) of Air China Limited

(Overseas Regulatory Announcement)

This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities
on The Stock Exchange of Hong Kong Limited.

Pursuant to comments of the Shanghai Stock Exchange on the 2008 annual report (A shares) (“Annual
Report”) of Air China Limited (the “Company”), the Company hereby makes the following further
explanation to the relevant matters in the Annual Report:

I. the use of fuel hedging to lo wer the oil price vola tili ty OF TH E
COMPANY

The Company locked in part of its jet fuel cost to a hedged range through developing its fuel
hedging activities, thereby stablising its major costs components and meeting its operating goals.
In 2008, the jet fuel cost of the Company was RMB21.734 billion, representing an increase
of 27.6% compared to 2007 and accounted for 42.7% of total operating costs, of which the jet
fuel cost for the first half of 2008 was RMB10.122 billion, representing an increase of 27.36%
compared to 2007 and accounted for 42.16% of the total operating costs. The jet fuel cost saved
in effect through such aviation fuel hedging activities for the first half of 2008 was RMB215
million, which to a certain extent, helped to stabilise the cost budget. From September 2008,
the international fuel prices experienced a sharp fall from its historic highs. As a result, the
Company’s fuel hedging contracts, which were entered into in July 2008, suffered fair value
losses and incurred actual loss of RMB427 million from settlement of fuel hedging contracts
in November and December 2008. The jet fuel cost for the same period however decreased by
2.05% compared to the same period in 2007 and international jet fuel cost decreased by RMB558
million compared to the same period in 2007.

II. the use of interes t ra te swaps to lo wer the interes t ra te ris k OF
THE COMPANY

The Company’s interest rate risk mainly stems from its finance lease liabilities and bank
borrowings with variable interest rates. The Company converted the variable interest rate
obligations of part of the liabilities into fixed rates through interest rate swaps so as to control
its interest rate exposure and lock in its interest cost for a prescribed future period. As at the
end of 2008, the principal of the Company’s interest rate swap contracts accounted for 13%
of the variable interest rate obligations of the Company. According to the interest rate swap
contracts, the Company’s relevant variable interest rate obligations was converted from USD
6-month London Interbank Offered Rate (LIBOR) into a fixed rate for the period specified
in the contracts so as to reduce the uncertain effects of future fluctuations in LIBOR on the
Company’s operation.

III. the use of exchange ra te hedging to lo wer the expos ure to
foreign exchange risks OF THE COMPANY

The Company uses exchange rate hedging mainly for the purpose of reducing the foreign
exchange risks associated with its revenue which are settled in foreign currency. The main
foreign currency revenues of the Company are mainly denominated in United States dollar
(USD), Japanese yen (Yen) and Euros. In order to reduce effects on the Company’s foreign
currency revenue which may be caused by any large fluctuations in foreign exchange rates, the
Company engaged in simple exchange rate hedging in relation to a portion of its Euros revenue
in 2007. The balance settled in 2008 accounted for 13% of the Company’s net Euros revenue
and the terms came to maturity in March 2008 and August 2008. Through locking in foreign
exchange rates, the Company’s overall foreign currency revenue is in a comparatively stable
position.

IV. T he decision-making procedures of the Company in relation to
the DEVELOPMENT of fuel hedging AND interest swaps FOR THE YEAR
2008


(1) The decision-making procedures for the fuel hedging operation of the Company developed
in 2008 are as follows:

At the beginning of the year, based on the proposal made by the fuel hedging operation
team, the Fuel Risk Management Committee of the Company drafted the fuel hedging
strategy for 2008, which was first submitted to the Senior Management Meeting for
approval and after such approval to the Board for its review and approval. The contents
of the fuel hedging strategy for 2008 included hedging proportion for the year (50%±10%
of the budgeted spot purchases as estimated at the beginning of the year), hedging price
range, selected tools, their costs and other factors. The fuel hedging operation team was
authorised to build up positions for 2009 and 2010 when opportunities arise provided that
the hedging price levels are not higher than those for 2008. Relevant authorisation was
also granted to the members of the fuel hedging operation team.

Based on the above-mentioned annual strategy and authorisation, the fuel hedging operation
team built up positions in three tranches in January, May and July 2008 respectively after
making careful analysis on the trend of oil price, timing of trading, fuel categories and
prices and the holding of specialised meetings to strategise the building up of positions.
After the positions were built up, the operation team reported to the Fuel Risk Management
Committee of the Company in accordance with relevant regulations.

(2) The interest swap operations of the Company in 2008 followed the following
procedures:


1. The Board granted written authorisation to the signatory of a transaction in relation
to transaction limits, product structure and transaction period and granted written
authorisation to the traders and the risk controllers for carrying out their trading and
supervisory responsibilities.

2. In April and May 2008, the Company conducted a special research on risk
management plan relating to debts with USD variable interest rate obligations based
on an analysis of long and short term historical movements of interest rates and
projection of future economic development within the context of the debt interest
rate structure of the Company.

3. On 16 May 2008, the 11th Senior Management Meeting of the Company approved
the risk management plan relating to debts with USD variable interest rate
obligations.

4. From the end of May 2008 to the beginning of September 2008, the Company
conducted interest rate swap transactions in respect of 12 debt obligations with USD
variable interest rate obligations based on the authorisation granted to the relevant
personnel and the resolution adopted at the meeting of the Senior Management
Meeting.

V. Reaso ns for the discre pancy betwee n the fair val ue losses on
hedging contracts as disclosed in the Annual Report and the
previously disclosed los of RMB6.8 bilion

The amount of “RMB6.8 billion” disclosed in the announcement published in January 2009
referred to the unaudited fair value of jet fuel derivatives as at the end of the relevant accounting
period which is recorded as a balance sheet item in financial statements. The amount of
“RMB7.472 billion” disclosed in the Annual Report referred to the audited changes in fair
value of jet fuel derivatives recorded as an income statement item in the audited financial
statements for the year of 2008. The audited fair value of the jet fuel derivatives as at the end of
the accounting period was RMB7.225 billion, representing a difference of 5.95% as compared
with the amount of “RMB6.8 billion” disclosed in the announcement published in January 2009.
The unaudited changes in fair value of jet fuel derivatives for the year of 2008 was RMB7.066
billion, representing a difference of 5.75% as compared with the audited amount of “RMB7.472
billion” of changes in fair value of jet fuel derivatives as stated in the Annual Report.

After publishing the profit warning announcement in January 2009, the Company communicated
with an independent third party valuation firm on the parameters adopted in the valuation model
– the volatility of oil price which was determined by taking a model calculation with reference
to the same or similar types of contracts in the market. Due to the absence of contracts in the
market of contracts similar to the ones held by the Company in terms of type, term and exercise
price, such parameters computed would be affected by the similar contracts selection standard.
The final selection standard adopted by the independent third party valuation firm was slightly
different from the selection standard adopted for the previous announcement. Therefore, there
were minor changes in the fair value of the contracts computed with the valuation model. The
results of the fair value of the contracts computed with the valuation model have been approved
by the auditor.
4
VI. Iss ues in rela tio n to the pro visio n of RMB107 milio n for im pairme nt
loses of fixed asets

On the balance sheet date, the Company and its subsidiaries (the “Group”) will decide if there
is evidence of potential impairment in respect of its fixed assets. If there is evidence of any
impairment, the Group will estimate its recoverable amount and conduct an impairment test.
For every aircraft held for sale i.e. aircraft that has been contracted for sale but has not yet been
sold as at the balance sheet date, the Group will make impairment provisions according to the
book value less its fair value of such aircraft as at the balance sheet date.

In accordance with the abovementioned policy, the Group compared the contracted selling price
net of estimated disposal cost (i.e. the fair value as at the balance sheet date) with the book
value for each aircraft held for sale in 2008. The Group has made an impairment provision of
RMB107 million for aircraft with fair value less than its book value. In subsequent years, the
Group will also make impairment provisions for aircraft held for sale which as at the balance
sheet date has a fair value (net of disposal cost) less than its book value.

By order of the Board
Air China Limited
Huang Bin T am Shuit Mui
Joint Company Secretaries
Beijing, PRC, 13 May 2009


As at the date of this announcement, the Directors of the Company are Mr. Kong Dong, Ms. Wang
Yinxiang, Mr. Wang Shixiang, Mr. Christopher Dale Pratt, Mr. Chen Nan Lok, Philip, Mr. Cai
Jianjiang, Mr. Fan Cheng, Mr. Hu Hung Lick, Henry*, Mr. Wu Zhipan*, Mr. Zhang Ke* and Mr.
Jia Kang*.

* Independent non-executive Director of the Company

“Friendly Shandong” Rizhao Tourism Month Kicks Off


Since its foundation, the Friendly Shandong Aircraft has served as an airborne ambassador and important channel to this tourism industry in this province. In previous months we have promoted the cities like Jinan (city of springs), Zibo (ancient cultural city), Dongying (ecological city) and Yantai (city of gold). Our next destination is the city known for water sports, Rizhao.

Situated at the southern end of Shandong Peninsula, Rizhao has Yellow Sea to its east, Yimeng Mountain to its west, Lianyungang to its south and Qingdao to its north. As an emerging seaport city, Rizhao is an excellent tourist city in China and is also known for its water sports. With its characteristic landscape of “blue sky & river and 64km golden beach”, Rizhao is as beautiful as Hiwaii. Its atmosphere, seawater and fresh water quality always meet Chinese first-grade standards.

This resource-rich city will become the subject of Shandong Airlines’ Friendly Shandong tourism campaigns beginning May 1. Through cooperation with Rizhao Tourism Bureau, any passengers flying on the Friendly Shandong aircraft between May 1 and May 31 will have the chance to participate in prize draws for Rizhao tourism souvenir, a beautiful shell bracelet.

Again, we warmly welcome all passengers traveling on our Friendly Shandong aircraft to fly over our province and enjoy wonderful beach sights of Rizhao in the blue sky.

TTG China Travel Mag Honors China Southern As “Best Business Class”

SHANGHAI - April 16, 2009 - China Southern Airlines, (NYSE: ZNH, HKSE: 1055, SHA 600029) - www.csair.com/global - the newest member of SkyTeam and the largest airline in The People’s Republic of China has been named “Best Business Class Airline in China” at the annual TTG China Travel Award ceremony held here.

The award by TTG China Magazine is the fourth for China’s largest airline, including:

2002 - “Best China Airline”
2004 - “Best China Airline”
2008 - “Best Business Airline in China”


This new honor from TTG China Magazine comes on the heels of China Southern Airlines named “Best Airline China 2009” in the annual Skytrax survey.

TTG China Travel Award 2009’s “Best Business Airline in China” award, presented to China Southern Airlines, honors China’s largest airline for the following criteria:

High level of flight safety and punctuality
Extensive network and user-friendly flight schedules
Most travel agent-friendly in terms of reservations, confirmations and commission payments, and
China’s most professional sales and marketing team in terms of innovative ideas, incentive programming and service


About TTG China Travel Awards

The 2009 TTG China Travel Awards, a prestigious award ceremony which takes place alongside IT&CM China 2009, honors top performing travel and tourism organizations whose significant contributions are shaping China's travel & tourism industry.

Winners are determined by votes cast by TTG readers across China and Asia Pacific. As TTG readers are members of the travel and tourism trade, award winners are therefore deemed the best in the industry.

About China Southern Airlines

The newest member of SkyTeam - www.skyteam.com - and the largest airline in The People’s Republic of China for the past 30 years, China Southern Airlines - www.csair.com/global - connects more than 80 cities around the globe. Major business and vacation destinations served in China include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan and as well as International service, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta, Lagos, Los Angeles, Manila, Melbourne, Moscow, Osaka, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

For China Southern Airlines reservations and information, please contact your local travel agent.

China Southern Airlines Named “Best Airline China 2009”; World Airline Awards Honors China’s Largest Carrier


HAMBURG, Germany - April 13, 2009 - China Southern Airlines, (NYSE: ZNH, HKSE: 1055, SHA 600029) - www.csair.com/global - the newest member of SkyTeam and the largest airline in The People’s Republic of China has been named Best Airline China 2009 in The SKYTRAX World Airline Awards™.

The honor recognizes China Southern’s quality of service and size of network, reflecting its continued growth as a quality international airline company.

The annual SKYTRAX World Airline Awards™ (www.worldairlineawards.com) are among the most highly regarded in the industry, with the results based on surveys of more than 15 million air passengers from nearly 97 nationalities conducted over 10 months, between August 2008 and March 2009.

Mr. Edward Plaisted, Chief Executive, SKYTRAX, said “the awards, now in their 10th year, were renowned for being the only truly global, independent passenger survey of airline standards”.

China Southern scored high in varied categories ranging from flight safety, in-flight service, ground service, size of network and brand image.

China Southern Airlines currently operates 342 modern Boeing 777, 747, 757, 737 and Airbus A330, 321, 320, 319 and 300 jet aircraft serving destinations to 905 cities in 169 countries, forming an extensive network, with Guangzhou and Beijing as its hubs, covering all of China and radiating throughout Asia with convenient connections to all main cities in the world via close cooperation with all the SkyTeam member airlines.

In 2008, China Southern Airlines carried nearly 58 Million passengers, being ranked world #4 and Asia #1 and the only one Asian airline listed in the Top 5 from China; ranked as the largest airline in China for 30 consecutive years and is the only carrier in mainland China entering into the world’s Top 10 passenger airlines.

China Southern Airlines is the aviation marketing leader in China and is renowned for its numerous branded services such as The Sky Pearl Club Frequent Flyer program; First & Business Class VIP Lounges Ground Service; China Southern Connections Service and “95539” Customer Service & Call Center Hot Line.

About SKYTRAX

The World Airline Awards™ are based on the World Airline Survey by SKYTRAX - www.worldairlineawards.com - carried out between August 2008 and March 2009.

The SKYTRAX World Airline Awards™ celebrated its 10th anniversary with 500 people attending the ceremony in Hamburg to see the winning airlines receive their accolades here in Hamburg.

More than 16.2 million travelers participated in the Survey over an eight month period with more than 97 different passenger nationalities taking part, it is not difficult to see why The World Airline Awards™ are highly regarded, recognized and quoted across the globe.

The survey measures over 35 different aspects of passenger satisfaction for an airline's product and service standards - evaluating the 'typical' travel experience.

The World Airline Survey is regarded as the primary benchmarking tool for passenger satisfaction levels of airlines throughout the world - constituting a unique survey format based upon analysis of both business and leisure travelers and across all cabin travel types (First, Business, Premium Economy & Economy Class passengers).

About China Southern Airlines

The newest member of SkyTeam - www.skyteam.com - and the largest airline in The People’s Republic of China for the past 30 years, China Southern Airlines - www.csair.com/global - connects more than 80 cities around the globe. Major business and vacation destinations served in China include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan and as well as International service, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta, Lagos, Los Angeles, Manila, Melbourne, Moscow, Osaka, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

For China Southern Airlines reservations and information, please contact your local travel agent.

RMB 20 Billion Credit Line Provided to China Southern Airlines;

Key Strategic Pact Inked with China Construction Bank


GUANGZHOU, China - April 9, 2009 - China Southern Airlines, (NYSE:ZNH) (HKSE: 1055) (SHA: 600029) -www.csair.com/global - the newest member of SkyTeam and the largest airline in The People's Republic of China is pleased to announce a new strategic cooperation agreement and capital settlement network cooperation agreement with China Construction Bank.

As part of the new pact, China Construction Bank will provide an RMB 20 Billion comprehensive line of credit to China Southern Airlines.

According to Mr. Si Xian Min, President of China Southern Air Holding Company & Chairman of China Southern Airlines, said the new agreement with China Construction Bank will, “carry out multi-level and all-dimensional cooperation in the field of credit aid; financial consultation; international settlement; cash management; capital settlement; construction consulting and company pension. China Southern Airlines will be given an RMB 20 billion credit line for financial leasing; short-term loans in domestic and foreign currency; medium and long term loans; bill acceptance and discount; factoring service; assurance service; letter of credit and trade finance.”

Mr. Si added that, “in face of the current global economic downturn and waning demand, China Southern still recorded steady growth in passenger traffic in First Quarter 2009. China Southern expects this new bank-enterprise cooperation to bolster its business and bring new possibilities.”

Mr. Zhang Jian Guo, President, China Construction Bank expressed confidence in China Southern’s financial performance and social reputation and said “the substantial and superior services of China Southern contribute to a strong brand image in the market.”

About China Construction Bank

The history of the China Construction Bank Corporation (“the Bank”) dates back to 1954 when the People’s Construction Bank of China was founded. This entity was renamed China Construction Bank in 1996. China Construction Bank Corporation was formed in September 2004 when it separated from its predecessor, China Construction Bank, and assumed its commercial banking business and related assets and liabilities.

Headquartered in Beijing, CCB had a network of 13,374 branches and sub-branches in Mainland China as of 31 December 2008, and maintained overseas branches in Hong Kong, Singapore, Frankfurt, Johannesburg, Tokyo and Seoul, as well as representative offices in New York, London and Sydney. The Bank holds a 100% interest of China Construction Bank (Asia) Corporation Limited, CCB International (Holdings) Co., Ltd., and holds a controlling interest of Sino-German Bausparkasse Corporation Ltd, CCB Principal Asset Management Co., Ltd. and CCB Financial Leasing Corporation Ltd. It has a total of approximately 300,000 staff.

The Bank was listed on the Stock Exchange of Hong Kong Limited (Stock Code: 939) on 27 October 2005 and was listed on the Shanghai Stock Exchange (SSE Code: 601939) on 25 September 2007.

About China Southern Airlines

The newest member of SkyTeam – www.skyteam.com – and the largest airline in The People’s Republic of China for the past 30 years, China Southern Airlines - www.csair.com/global - connects more than 80 cities around the globe. Major business and vacation destinations served in China include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan and as well as International service, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta, Lagos, Los Angeles, Manila, Melbourne, Moscow, Osaka, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

For China Southern Airlines reservations and information, please contact your local travel agent.

Calling Dick Tracy! Calling Dick Tracy!

Airline Boarding Passes via Mobile Phones Now Available From China Southern

GUANGZHOU, China - April 8, 2009 - China Southern Airlines, (NYSE:ZNH) (HKSE: 1055) (SHA: 600029) - www.csair.com/global - the newest member of SkyTeam and the largest airline in The People's Republic of China has formed a new partnership with Baiyun International Airport that will allow the use of a new mobile phone check-in service.

According to Mr. Jerry Hu, China Southern Airlines’ Chief Information Officer, this exciting all-new IT product, “is an all new electronic boarding pass in which customers will enjoy a simplified, paper-free and time-saving travel experience.”

This new service is currently available to China Mobile users in the Guangzhou area.

Currently under trial format on CZ3157 from Guangzhou to Zhengzhou, China Southern will progressively introduce the new service to other routes.

According to Mr. Hu, this new mobile phone check-in system at Baiyun International Airport will “offer travelers the option of receiving an electronic boarding pass after checking in online or via mobile (in the form of SMS text messages containing relevant flight data, such as the name of traveler, flight number and seat number, plus a 2D barcode).”

He explained that the “barcode on the traveler’s phone becomes the passenger’s boarding pass and can be read by scanners at security checkpoints and at the boarding gate - thus eliminating the need for a paper ticket from the check-in process. Customers may log onto China Southern Airline’s Chinese website at www.csair.com after 2:00 p.m. the day before their departure, find the ‘online check-in procedure’, enter the required information, choose a seat yourself or allow the computer select your seat, then click ‘print the electronic boarding pass’ and input your mobile phone number.”

Mr. Hu said that once the procedures are complete, electronic documents will be transmitted directly to the passenger’s mobile phone.

“Alternatively, customers without Internet access can simply send “?” to 95539 and download the barcode according to system requirements. Passengers without baggage to check in can proceed directly to the airport security screening area. Passengers with baggage to check should proceed as usual to baggage drop off points prior to security screening,” said Mr. Hu.

The International Air Transport Association (IATA) has mandated a move to 100% bar coded boarding passes by the end of 2010.

The following is a timeline of landmark IT services launched by China Southern Airlines:


March 28, 2000 - China Southern sold the first e-ticket in China;

October 28, 2005 - China Southern launched its E-ticket self check in service

July 6, 2007 - China Southern launches online self-check-in service, and

April 10, 2007 - China Southern introduces mobile phone boarding pass Singapore, Sydney and Tokyo.


The newest member of SkyTeam – www.skyteam.com – and the largest airline in The People’s Republic of China for the past 29 years, China Southern Airlines - www.csair.com/global - connects more than 80 cities around the globe. Major business and vacation destinations served in China include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan and as well as International service, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta, Lagos, Los Angeles, Manila, Melbourne, Moscow, Osaka, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

For China Southern Airlines reservations and information, please contact your local travel agent.

China Southern Airlines Announces Reductions in Fuel Surcharges


GUANGZHOU, China - April 1, 2008 - China Southern Airlines, (NYSE: ZNH, HKSE: 1055, SHA 600029) - www.csair.com/global - the newest member of SkyTeam and the largest airline in The People’s Republic of China is pleased to announce new fuel surcharges that will apply on tickets issued on (or after) April 1,2009.

China’s largest airline is announcing the following changes:

Between China and Europe
For tickets sold in Europe, fuel surcharges have been lowered to EUR56 (per flight sector).
For tickets sold outside Europe, fuel surcharges have been lowered from RMB900 to RMB500 (per flight sector).

Between China and America; China and Africa; Middle East and Africa and Europe and Middle/South America
Fuel surcharges have been reduced from RMB950 to RMB500 (per flight sector).

Between China and Australia
Fuel surcharges have been reduced from RMB500 for tickets sold in China (and RMB240 for those sold outside China) to RMB240 (per flight sector).

Between China and Southeast Asia; Indian Subcontinent; Middle East and Baku, Russia
Fuel surcharges have been reduced from RMB400 to RMB200 (per flight sector). Fuel surcharges on flights between Beijing and Manila and Hanoi, Phnom Penh have been adjusted to RMB240 (per flight sector).

Between China and South Korea
For flights started from China, fuel surcharges have been reduced from RMB400 to RMB200 (per flight sector).

Between China and Japan
For tickets sold in Japan, fuel surcharges have been lowered from YEN 6000 to YEN 500.
For tickets sold outside Japan, fuel surcharges have been lowered from RMB400 to RMB35.

Between Mainland China, Hong Kong and Macau
For flights originating from Hong Kong and Macau, fuel surcharges have been lowered from HKD61 to HKD52 - for all airline tickets sold in Hong Kong and Macau.

For flights originating from destinations outside Hong Kong and Macau, fuel surcharges have been lowered from HKD54 to HKD46 - for all airline tickets sold outside Hong Kong and Macau.

The newest member of SkyTeam – www.skyteam.com – and the largest airline in The People’s Republic of China for the past 29 years, China Southern Airlines - www.csair.com/global - connects more than 80 cities around the globe. Major business and vacation destinations served in China include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan and as well as International service, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta, Lagos, Los Angeles, Manila, Melbourne, Moscow, Osaka, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

For China Southern Airlines reservations and information, please contact your local travel agent.

Company Profile: China Southern Airlines

China Southern Airlines Co. Ltd. – the newest member of SkyTeam - is a main air transportation business of China Southern Air Holding Company.

With flight operations based at Guangzhou’s brand-new, award-winning Baiyun International Airport, China Southern Airlines’ company logo can be seen around the globe with a brilliant red kapok delicately adoring a blue vertical tail fin.

China Southern Airlines has 13 branches located throughout China, including: Beijing, Dalian, Guangxi, Hainan, Henan, Hubei, Hunan, Heilongjiang, Jilin, Northern, Shenzhen, Xinjiang and Zhuhai Helicopter Company. Five holding subsidiaries are located in Chongqing, Guizhou, Shantou, Xiamen and Zhuhai with 2 bases in Shanghai & Xian and 18 domestic sales and ticket offices situated throughout China, including Chendu,Hangzhou,Nanjing and Taibei,etc. 

As China’s largest airline, China Southern Airlines has 54 International offices located in major metropolitan markets around the world, including: Amsterdam, Dubai, Lagos, Los Angeles, Paris, Singapore, Seoul, Sharjah, Sydney ,Tokyo,New York,London,Vancouver,Dibai, Brisbane,etc.

China Southern Airlines operates the largest and most technologically advanced airline fleet … as well as the most extensive domestic air network in The People’s Republic of China.

Currently, China Southern Airlines operated 342 modern Boeing 777, 747, 757, 737 and Airbus A330, 321, 320, 319 and 300 jet aircraft serving destinations to 841 cities in 162 countries … forming an extensive network, with Guangzhou and Beijing as its hubs, covering all of China and radiating throughout Asia with convenient connections to all main cities in the world via close cooperation with all the SkyTeam member airlines.

In 2007, China Southern Airlines carried nearly 57 Million passengers, being ranked world #4 and Asia #1 and the only one Asian airline listed top 5 from China,ranked as the largest airline in China for 29 consecutive years and is the only carrier in mainland China entering into the world’s Top 10 passenger airlines - based on annual passenger traffic volume.

As of 16 July 2008, China Southern Airlines had achieved more than 5 Million safe flight hours and carried 2.5 hundred Million passengers safely and was honored the Five-Star Flight Safety Award by the General Administration of Civil Aviation of China (CAAC) – the current most prestigious award for safe flight operations in the Chinese aviation industry, becoming the only Chinese carrier maintaining the longest safety record and occupying a leading position in the international aviation industry.

The airline owns and operates its own independent pilot training centers for pilots and flight attendants. China Southern Airlines, with more than 3,300 comprehensively trained and experienced pilots, is the only Chinese carrier that has the independent capability of “building its pilots from the ground up” as it trains young aviators at its Western Australia Flying College in Perth … then moves these graduates to advanced cadet training at its Zhuhai Flight Training Center, a joint venture with Montreal-based CAE Inc.

China Southern Airlines enjoys a strong aircraft maintenance capability through its joint-venture company GAMECO - Guangzhou Aircraft Maintenance & Engineering Co.,  Ltd. – the largest aircraft maintenance hanger in Asia and via its MTU Maintenance Zhuhai Co., Ltd. - in partnership with the German MTU - the biggest aero engine overhaul facility with the highest level in maintenance in mainland China. Additionally, China Southern Airlines has earned two second prizes in the National Science & Technology Progress Award, one for its System Operations Control Center and the other for its Engine Performance Monitoring System.

In 1995, 2001, 2003, 2004 and 2007, China Southern Airlines was honored by the CAAC with the “Golden Roc Cup” – the previous most prestigious award in the Chinese aviation industry.

China Southern Airlines is committed to putting the customer first and dedicated to exceeding its customers’ expectations by offering reliable, on-time and convenient quality customer service.

China Southern Airlines attaches key importance to its branded products strategy, offering a host of reliable and convenient on-time services. The airline currently has the largest frequent flyer program in China - The Sky Pearl Club - with more than 4.2 Million members, enjoying numerous opportunities for free flights and flight upgrades.

China Southern Airlines is the first airline in China to own and operate its own terminals – Terminal One at Beijing Capital International Airport, Terminal One at Xi’an Xianyang International Airport and Terminal Three at Urumqi Diwobao International Airport.

China Southern Airlines is the aviation marketing leader in China and is renowned for its numerous branded services such as The Sky Pearl Club; First & Business Class VIP Lounges Ground Service; China Southern Connections Service and “95539” Customer Service & Call Center Hot Line.

China Southern Airlines has been named the “Best Airline in China” by several international organizations, and was honored with the “Five Star Diamond Award” by The American Academy of the Hospitality Sciences in January 2004.

China Southern Airlines is developing at a brisk pace.

In 1997, China Southern Airlines debuted on both the New York and Hong Kong Stock Exchanges and in 2003, the airline was listed on the Shanghai Stock Exchange.

China Southern Airlines successively merged with, took over shareholding stocks in and joined the equity in numerous Chinese carriers.

China Southern Airlines led the Chinese aviation industry in introducing the Boeing 737, 757, 777, Airbus A330 and the superjumbo A380 to the Chinese marketplace; the first Chinese carrier to introduce its own Computer Reservation System and Internet e-ticketing; the first to introduce its own Revenue Management, System Operations Control, Finance Management, Human Resources, Cargo and Office Automation Systems; established a mammoth cargo station ranked #1 in mainland China and the third largest in the world … and the largest air catering center in the mainland.

In January 2005, China Southern Airlines inked a pact with Airbus for five A380 superjumbo aircraft
In August 2005, China Southern Airlines signed an agreement with Boeing for 10 B787-8 Dreamliners, becoming the largest purchaser of this type of aircraft in China.

In 2006, China Southern Airlines placed an order for six B777 freighters, striding forward a brand new step in its cargo development.

China Southern Airlines has received numerous honors, including:

• In 1995, 2001, 2003, 2004 and 2007 China Southern Airlines was honored the “Golden Roc Cup” - the most prestigious safe flight operation award in the Chinese aviation industry.

• In 2002, China Southern Airlines was ranked #13 among the Top 100 listed Chinese enterprises by Fortune Magazine.

• In 2002, China Southern Airlines was named one of the Top 10 emerging Chinese third party logistics enterprises by The China Shipping Gazette.

• In 2002, China Southern Airlines’ “Operation Target Management” Program was honored the second prize in the 9th China National Enterprise Management Modernization Innovation Achievements.

• In 2003, China Southern Airlines was ranked 9th among the top 500 Chinese informationisation enterprises and was honored the “Best Informationisation Efficiency Award”.

• In both 2002 and 2004, China Southern Airlines was named as the “Best China Airline” by TTG Asia Travel Magazine.

• In 2004, China Southern Airlines’ System Operations Control System was honored with second prize in the “National Science & Technology Progress Award”.

• In January 2004, China Southern Airlines was honored with the Five Star Diamond Award by The American Academy of the Hospitality Sciences.

• In April 2005, China Southern Airlines was named the “Best Air Cargo in China” during the 1st Annual Cargonews China Awards.

• On 31 December 2006, China Southern Airlines Xinjiang Company (the former Xinjiang Airlines) successfully completed 52 consecutive years of safe flight operations, setting a new record for safe flight operations in China’s aviation industry.

• In 2006, China Southern Airlines was honored the Three-Star Flight Safety Award by the CAAC – the most prestigious award for safe flight operations in the Chinese aviation industry.

• On 20 May 2007, China Southern Airlines was presented the Four-Star Flight Safety Award by the CAAC – the current most prestigious award for safe flight operations in the Chinese aviation industry.

• On 8 September 2007, China Southern Airlines received the Outstanding Contribution To Society Award at the forum on Social Responsibility And Harmonious Society 2007, organized by Xinhua News Agency.

• In January 2008, China Southern Airlines was named the CCTV China Annual Best Employer 2007.

• On 9th March, the General Administration of Civil Aviation of China (CAAC) held the 2007 Customer Evaluation Results Conference. China Southern Airlines was honored the “2007 Customer Satisfaction Award” – the most prestigious quality service award in the Chinese aviation industry.

• On 10th April,China Southern Airlines was named as the “Best Business Class Airline in China” at the annual TTG China Travel Award ceremony held in Shanghai.

• On 20 May 2007, China Southern Airlines was presented the Four-Star Flight Safety Award by the CAAC – the current most prestigious award for safe flight operations in the Chinese aviation industry.

• On 16 July 2008, China Southern Airlines was presented the Five-Star Flight Safety Award by the CAAC – the current most prestigious award for safe flight operations in the Chinese aviation industry, becoming the only Chinese carrier maintaining the longest safety record and occupying a leading position in the international aviation industry.

4/20/2009

Shandong Airline B2C English Version Went Online


Shandong Airline officially launched the B2C English sales site on April 9th, 2009 thanks to the combined efforts from the e-business and telephone sales service centers of the marketing department and Travelsky Technology Limited. The English website is launched to provide a wider coverage of the targeted audience and to increase the website traffic, making it convenient for English speaking consumers to visit the Shandong Airline B2C website, thus increasing the brand influence.

The B2C English website consolidated all the existing Shandong Airline services, covered the main business functions such as flight enquiry, domestic and international ticket sale, express purchase, flight network map, online check-in and online rebooking and upgrade. International customers will be able to purchase Shandong Airline e-ticket through the English website without registration at any time, anywhere, thus providing a greater degree of freedom and convenience to the potential customers.

The official launch of the B2C English website has expanded our scope of services by providing better and faster ticket booking services to passengers and made us more competent in the market. It will have a positive effect on our integration into the global market and increasing our market competence.

4/20/2009

Shandong Airline Brand Sets to Shine in the National Games Ice Fields


The short track speed skating and figure skating events of the 11th National Games of People’s Republic of China officially kicked off on April 3rd, 2009 at the Qingdao Guoxin Stadium. Shandong Airline joined the campaign of the two events as the airline sponsor and partner of the 11th National Games.

To ensure the quality of the services to the 11th National Games, Shandong Airline has been strictly following the service requirements set out by the National Games Organizing Committee. Shandong Airline is committed to provide the best quality airline service to the 11th National Games and has been highly commended by the 11th National Games Organizing Committee. Before the commencement of the ice sports events, Shandong Airline marketing department set up display stands outside the stadium to promote the spirit of the National Games and demonstrate our corporate philosophy of"a Safe and Harmonious Shandong Airline". Under the theme slogan"Proudly Serving the National Games, Hospitable Shandong Airline", the marketing department promoted different products such as flight adjustments, online special, paid vacation and featured services for the National Games and fully demonstrated the Shandong Airline brand image. Inside the stadium, billboards with Shandong Airline advertisements standing along the tracks have attracted many eyeballs, thus effectively increased the brand awareness and generated positive advertising results.

BAR and CX welcomes relief package from Hong Kong Airport Authority


27 April 2009


The Board of the Airline Representatives in Hong Kong (BAR HK) and Cathay Pacific welcome the HK$450 million relief package announced by the Hong Kong Airport Authority (AA) to assist airlines to overcome the current difficult operating environment.

Mr. Joe Ng, Vice Chairman of BAR HK said: “The 10% reduction in both landing and parking charges until the end of 2009 and the deferral of half of the rental payments for airline lounges, office premises and facilities for up to one year will help our members reduce operating costs in the midst of falling passenger demand and revenue brought on by the financial meltdown.

“The aviation industry is hard hit by the economic downturn and prospects for the remainder of 2009 are extremely challenging. We appreciate AA’s consultation with industry operators and the relief measures to help maintain Hong Kong as the premier aviation hub in the region.”

BAR HK is an industry body which represents 63 airlines with operations in Hong Kong to and from all over the world.

Cathay Pacific Chief Executive Tony Tyler said: “We welcome the Airport Authority’s timely package of relief measures. As the biggest airline operator at Hong Kong International Airport, we appreciate all the savings we can get from the Airport Authority and our other suppliers. It is essential for airlines and the airport to work closely together, especially in these challenging times, to underpin the competitiveness of the Hong Kong aviation hub.”

Majority of staff already signed up to Special Leave Scheme, consent deadline extended


24 April 2009

Cathay Pacific Airways today announced that some 14,000 staff from Cathay Pacific and Dragonair, representing around 70% of the airlines’ total worldwide workforce, have agreed to join the Special Leave Scheme – one of a series of measures introduced to help preserve cash in the face of a serious downturn in business.

Staff were invited to give their consent to the scheme, in which the equivalent of one to four weeks’ salary will be deducted depending on the level of seniority, starting from Monday, 20 April. In the first five days of Special Leave Scheme enrolment, the breakdown of the response rate among different staff groups in Cathay Pacific is as follows:


Hong Kong ground staff 85%
Hong Kong-based cabin crew 77%
Pilots 14%

The response has also been very encouraging in overseas offices, with the majority of countries already reporting consent rates of between 70% and 100%. Sister airline Dragonair has also reported a good response, with around 80% of ground staff and cabin crew responding positively and 55% of pilots giving their consent.

The airline has announced that it will extend the deadline for giving consent to the Special Leave Scheme from Thursday, 30 April to midnight on Sunday, 10 May (Hong Kong time). This decision has been taken in order to allow flying crew on roster duty, as well as staff already on leave or on other company duty travel, more time in which to consider the details of the scheme before giving their consent.

Cathay Pacific Chief Executive Tony Tyler said: “We are very encouraged by the response so far for the Special Leave Scheme. This is an important initiative that will greatly help in efforts to preserve cash in the midst of the current downturn, and I would like to thank all those who already given consent to join the scheme. In extending the deadline, we recognise that some of our staff will need more time to absorb the information and consider the facts before giving consent.”

The Special Leave Scheme is one of a raft of measures announced by Cathay Pacific on 17 April to help reduce costs in response to a 22.4% fall in turnover in the first quarter of 2009 compared to the same period last year. The airline is also reducing its passenger capacity by 8% and cargo capacity by 11% starting from May in addition to parking more two more freighters. The Special Leave Scheme is a four-tier, top-down arrangement in which top management and senior staff are being asked to contribute more.

Aerospace China

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An Air China Airbus A330-243, in special Beijing 2008 Olympic Torh Relay livery, landing at Vancouver International Airport

Photo: Makaristos / Wikipedia

Cathay Pacific announces cost-reduction measures in response to severe business downturn

17 April 2009

Cathay Pacific Airways today announced a series of measures that will help it deal with a drop in business resulting from the current economic downturn. In response to deteriorating business conditions, the airline will reduce passenger capacity by 8% and overall cargo capacity by 11% from May. At the same time, in a further effort to reduce cash spend, the airline will introduce a four-tier, top down Special Leave Scheme under which staff will be asked to take unpaid leave varying from one to four weeks according to their seniority.

Cathay Pacific Chief Executive Tony Tyler said: “We anticipate an extremely challenging year in 2009 and a toxic combination of low fares, a big drop in premium travel, weak cargo loads, poor yields and a negative currency impact is making it more important than ever to preserve cash. In the first quarter of 2009 we saw a marked deterioration in our business compared to the same period last year. Turnover for the first three months of this year was 22.4% lower than the same quarter in 2008. 

“We have no option but to take measures that will help us weather the current storm and maintain the long-term sustainability of the business.”

Capacity reductions

The capacity reductions are being introduced following a very thorough review of every route operated by Cathay Pacific.

On the passenger side there will be a reduction in flight frequencies or seat capacity to London, Paris, Frankfurt, Sydney, Singapore, Bangkok, Seoul, Taipei, Tokyo, Mumbai and Dubai. At the same time, additional flights will be mounted to Denpasar, Sapporo and Bahrain/Riyadh (see Appendix 1 on P.3 for more details).

Its sister airline Dragonair will also see a 13% cut in capacity. Flight services to Bengaluru, Busan, Sanya and Shanghai will be reduced while services to Fukuoka, Dalian, Shenyang, Guilin and Xian will be suspended.

For the cargo operation, the cuts will see a reduction in available tonne kilometres – the measure of cargo capacity – of 11% taking into account the reduction in freighter operations and freight carried in the bellies of passenger aircraft. The weekly freighter frequency will fall to 84 flights – down from 124 a week during the 2008 peak.

In terms of aircraft deployment, the company is negotiating the sale of five aircraft and will park two more of its Boeing 747-400BCF freighters – taking the total to five – and wet-lease one BCF to subsidiary Air Hong Kong.

Special Leave Scheme

Under a Special Leave Scheme announced today, all of the 17,000 staff working for the airline – in Hong Kong (about 13,600) and overseas (3,400) – will be asked to take unpaid leave of one to four weeks, depending on seniority, over a 12-month period from 1 May 2009 to 30 April 2010.

While the capacity cuts dictate a certain reduction in operating staff, the Special Leave Scheme will help to save money across the board. The scheme has been designed according to three major principles – to preserve cash for 2009, to keep the airline’s operation going, and to be acceptable to all staff. Every member of the Cathay Pacific team is being asked to contribute to the scheme to help the company through this difficult period, with top management and senior staff asked to contribute more.

The Special Leave Scheme will be a four-tiered scheme defined by different staff levels. Level A staff will be asked to take one week’s leave, Level B staff two weeks, Level C staff three weeks and Level D and above four weeks. More than 11,000 Hong Kong-based Level A and B staff (more than 81% of the total local workforce) will be asked to take one to two weeks off over a 12-month period, or less than a working day every month. The scheme bears no impact on staff medical benefits and annual leave entitlements.

Note: for example, a Level A staff earning HK$10,000 a month will be asked to take less than half a working day off every month over a 12-month period. His monthly salary will be deducted by HK$384 over a 6-month period.

Staff consent for the Special Leave Scheme will be sought from 20-30 April. Staff who join the scheme will have their salary deducted over a six-month period from June to November 2009 in order to avoid reducing pay packets in December and the New Year when most people need to spend more cash. Those staff who already applied to participate in the Voluntary Unpaid Leave scheme introduced last year will be able to offset that leave against the special leave.

Directors and General Managers will be part of the scheme. Unlike other staff around the company the airline’s senior managers had no pay rise this year, and they were also excluded from the two-week year-end bonus that was paid to the rest of the team in 2008. In addition Chairman Christopher Pratt, Chief Executive Tony Tyler and Chief Operating Officer John Slosar will forego their 2008 bonuses, while the bonuses paid this year for other senior managers are being substantially reduced.

Cathay Pacific has already implemented a series of other measures to ensure that its financial position stays strong (see Appendix 2 for more details).

“The global economic meltdown is hitting the aviation industry hard,” said Mr Tyler. “Unlike many of our competitors, we get no government financial support or subsidy. We must make our own way as a commercial airline. To do this we must above all preserve cash. We have made it clear that we want to keep our team together as far as possible, but we need to take all of our cost factors into account in these unprecedented market conditions.

“Our staff are being asked to make sacrifices that will be needed to see the company through this violent storm. The pain will be shared from the top down. We have tried to make the scheme as fair and equitable as possible. That means that no matter what level an employee is, everyone more senior is taking more pain. Support from all staff is essential. Cathay Pacific is blessed with the brand, the reputation, the track record of premium service and quality that differentiates us from our competitors and we have to keep these advantages intact,” Mr Tyler said.

APPENDIX 1

The capacity changes being made by Cathay Pacific will result in the following reductions or additions to the schedule.

Planned CX Passenger Flight Reductions (Subject to change)

·             London – Ad hoc cancellations of 17 round trips in May and more are likely in June upon further review.

·             Paris – Cut 7 round trips off the twice-daily services in May. Plans to cut down to 10 flights per week from June to the end of August, then daily from September, subject to changes in accordance with demand.

·             Frankfurt - Cut 9 round trips off the 10-flights a week service in May. From June, cut 3 weekly services to make a daily service.

·             Sydney – Cut 1 flight daily to 3 flights per day.

·             Singapore – Cut 10 flights weekly to 32 flights per week.

·             Bangkok – Cut 4 flights weekly to 31 flights per week.

·             Seoul – Cut 1 flight daily to 4 flights per day.

·             Taipei – ad hoc cancellations.

·             Tokyo/Taipei – Downgraded to an A330 (311 seats) from a 747 (379 seats).

·             Mumbai/Dubai – Downgraded to an A330 with the new cabin products (264 seats) from a 747 (379 seats).

Additions

·             Denpasar – Add 4 flights weekly to existing daily flight from July to September.

·             Sapporo – Add 3 flights weekly to become daily in July/August.

·             Bahrain/Riyadh – Add 3 flights weekly to become a daily service from August.

Planned CX Cargo Flight Reductions (Subject to changes)

·             Weekly frequency down to 84 from the 2008 peak at 124

The following reductions are compared with the 2008 peak

·             Europe (via Middle East or India): to 22 flights per week from 32

·             North America – to 26 flights per week from 31

·             Australia – to 2 flights per week from 3

·             Mainland China - to 15 flights per week from 23, mainly Shanghai, Beijing, Xiamen

·             North Asia – to 10 flights per week from 20, mainly Osaka, Taipei,

·             S.E. Asia  – to 3 flights per week from 9, mainly Penang, Jakarta, Ho Chi Minh City

·             Middle East & India – unchanged at 6 flights per week

APPENDIX 2 – OTHER COST CUTTING MEASURES

On the fleet side these include setting aside five aircraft for disposal, parking three BCF freighters, negotiation with manufacturers to defer deliveries of new aircraft and looking into whether to renew aircraft leases that expire.

The airline has deferred the completion of its new cargo terminal by 24 months to 2013 and has pushed back capital expenditure in areas such as airport lounge renovations in Hong Kong and London. It is also continuing to negotiate with suppliers for more concessions and has supported the Board of Airline Representatives in urging the Airport Authority Hong Kong to reduce landing and parking charges at Hong Kong International Airport.

Other cost-reduction measures include redeploying flights to more profitable routes, making ad hoc cancellations to align with market demand, reducing advertising and marketing spend, implementing a hiring freeze and offering voluntary unpaid leave for operating crew.

Cathay Pacific releases combined traffic figures for March 2009

14 April 2009

Cathay Pacific Airways today released combined Cathay Pacific and Dragonair traffic figures for March 2009 that show a drop in the number of passengers carried compared to the same month last year together with another sharp fall in cargo and mail tonnage.

In March, Cathay Pacific and Dragonair between them carried a total of 2,096,011 passengers – a fall of 3.2% compared to the same month in 2008 - while the load factor fell by 3.0 percentage points to 79.1%. Capacity for the month, measured in available seat kilometres (ASKs), dropped by 0.8%. For the year to date, the number of passengers carried is down by 2.7% while capacity has risen by 0.1%.

The two airlines carried a total of 129,628 tonnes of cargo and mail last month, down 13.7% on March 2008, while capacity, measured in available cargo/mail tonne kilometres, fell by 10.0%. The cargo and mail load factor fell by 0.3 percentage points to 67.9%. For the year to date, tonnage has fallen by 18.7% compared to a capacity drop of 14.1%

Cathay Pacific General Manager Revenue Management Tom Owen said: “The slump in our passenger business continued in March, with overall passenger numbers and load factor both showing a fall from last year's high base, which included the Easter holiday period. Leisure traffic held up relatively well in terms of volumes, particularly on long-haul routes, although customers are only willing to travel at the much lower fares available in a highly competitive marketplace. This, combined with the ongoing malaise of premium-cabin demand and adverse currency movements, continues to exert considerable downward pressure on yields."

Cathay Pacific General Manager Cargo Sales & Marketing Titus Diu said: “The sharp drop in tonnage compared to the previous year highlights the continued weakness of the global airfreight business, and the fierce competition in shrinking markets is putting tremendous pressure on our cargo yield. The market out of the Hong Kong continues to be hit by a fall in production in the key Pearl and Yangtze River Delta areas, though our business to and from the United States received a lift from the launch of a new service to Miami and Houston which is giving us greater access to the important South American markets."

Cathay Pacific wins ‘Airline of the Year 2009’ Award


2 April 2009


Cathay Pacific Airways welcomes the announcement that it has been named Airline of the Year 2009 in the World Airline Awards run by the London-based Skytrax research organisation – the third time it has taken the honour in the past 10 years. The airline was also named Best Airline Asia in 2009.

The awards were presented to Cathay Pacific at the Aircraft Interiors Expo in Hamburg, Germany, where Skytrax was celebrating the 10th anniversary of the World Airline Awards. The 2009 awards were based on the annual World Airline Survey run by Skytrax, which was conducted between August 2008 and March 2009.

Skytrax Chief Executive Officer Edward Plaisted said: “In a global study that proved to be our largest-ever passenger survey, it is truly a great achievement for Cathay Pacific to have secured the world's best airline title in 2009. With over 16.2 million completed interviews, drawn from more than 97 nationalities around the world, we pay credit to the fact that Cathay Pacific is clearly delivering a quality of product and service that its customers really appreciate.”

Cathay Pacific has been a consistent winner in the World Airline Awards, taking the Airline of the Year honour in 2003 and 2005 and winning plaudits for its Hong Kong lounges and inflight products. In the 2008 awards the airline took the Best First Class title following the introduction of its groundbreaking new cabins.

Commenting on the latest honour, Cathay Pacific Chief Executive Tony Tyler said: “We are delighted to once again be named Airline of the Year in the Skytrax awards. This award is very meaningful because it was voted for by the travelling public and it’s a real tribute to the dedication and professionalism shown by our whole team. At Cathay Pacific we have worked hard to develop a world-class international network from our Hong Kong home, offering passengers top-notch products and the best service in the air, and it’s very pleasing to receive this kind of global recognition.”

Positive Response for Dragonair Special Leave Scheme, Consent Deadline Extended


24 April 2009

(HONG KONG) Dragonair today announced that the airline’s Special Leave Scheme, one of a series of cost-cutting measures introduced last week, has received an encouraging response. More than three-quarters of staff in the Dragonair network have already agreed to join the scheme to help the airline get through the current difficult times.

Under the Special Leave Scheme, which will help to preserve cash during the current economic downturn, staff will be asked to take unpaid leave varying from one to four weeks according to their seniority and rank.

Dragonair staff were invited to give their consent to the scheme from Monday, April 20. The breakdown of the response rate among different staff groups at Dragonair, as of noon today, is as follows:

Hong Kong Ground Staff: 78%
Cockpit Crew: 55%
Cabin Crew: 81%
Non-Hong Kong offices: Over 95%

The airline also announced that the deadline for the consent period for the Special Leave Scheme will be extended to midnight on Sunday, May 10 (Hong Kong time). The extension has been made in consideration of crew on roster duty and staff currently on leave or duty travel who may need more time to consider the scheme before giving consent.

Dragonair Chief Executive Officer Kenny Tang said: “This positive response reflects a real sense of team spirit among the Dragonair family. I would like to thank staff for supporting the Company by helping us to preserve cash during this very difficult time. The Special Leave Scheme is one of the major measures being taken to help the Company through the challenging time we now face, and support from each staff member is crucial to its success.”

Dragonair Introduces Additional Cost-Cutting Measures


17 April 2009

(HONG KONG) Dragonair today announced a series of measures in response to the difficult business environment created by the current economic downturn. In an effort to contain costs and preserve cash, the airline will reduce its passenger capacity by 13% from May. At the same time the airline will introduce a Special Leave Scheme under which staff will be asked to take unpaid leave varying from one to four weeks according to their seniority and rank.

Dragonair Chief Executive Officer Kenny Tang said: “Our business has been badly hit since the financial crisis first began to bite late last year and we have seen a significantly reduced demand for premium travel and pressure on our passenger yield due to the low fares in the market. The cost-cutting measures we have initiated since the end of last year are clearly not enough so we have no alternative but introduce further measures to help us preserve cash.”

Details of the cost-saving measures are as follows:

Capacity reductions

A 13% cut in capacity will be introduced from May 1 2009 which includes ad hoc suspensions in May. Starting from June 1, services to Bengaluru, Busan, Sanya and Shanghai will be reduced, while all flights to Fukuoka, Dalian, Shenyang, Guilin and Xian will be suspended (see Appendix I).

The airline will also park its last operating freighter – a Boeing 747-400BCF. It will, however, continue to provide cargo services using the belly space in its passenger aircraft.

At the same time as introducing the above capacity reductions, Dragonair has announced its intention to launch a scheduled passenger service to Guangzhou. The new service is targeted to commence in September, subject to government approval, with a twice-daily flight.

Special Leave Scheme

The scheme is applicable to all Dragonair staff on a graduated, four-tier basis in accordance with staff seniority and rank. All 2,500 staff working for Dragonair from top management down – about 1,820 in Hong Kong and 680 overseas– will be invited to take unpaid leave of one to four weeks, depending on seniority and rank, over a 12-month period from May 1, 2009 to April 30, 2010. Staff in overseas offices will follow local schemes that will be based on the Group scheme but with local variances. About 76% of the total workforce in Hong Kong will be asked to take one to two weeks off over a 12-month period, or less than one working day every month. The scheme will have no impact on staff medical benefits and annual leave entitlements.

The equivalent salary deduction will be deducted from salary payments from June to November 2009 in order to avoid reducing monthly wages in December and the New Year when most people need to spend more cash.

The Special Leave Scheme will further assist the airline in its efforts to preserve cash across the board. Every member of Dragonair will be asked to contribute to help the company through this difficult period, with top management and senior staff asked to contribute more.

Other cost-cutting measures taken by Dragonair can be found in Appendix II.

Mr Tang said: “Many of our staff have been through the various challenges Dragonair has faced over the years, including the Asian financial crisis, the fuel crisis and SARS. Each and every time our team has pulled together to work towards a common goal of overcoming the challenges and helping make Dragonair stronger. We are facing exceptional challenges now but I’m sure I can count on the support of our staff to help put us in a better position when the upturn comes.”

“Dragonair is one of the most recognisable brands in Hong Kong and Mainland China and the airline plays an important role in maintaining Hong Kong’s position as one of the world’s major aviation hubs. Despite the extremely difficult challenges we are currently facing, the Group remains committed to further developing Dragonair’s brand and network,” Mr Tang added.

Appendix I

Passenger capacity reduction

The capacity changes being made by Dragonair will result in the following reductions or additions to the schedule:


Bengaluru – cut 1 flight weekly to become 4 (June to September on ad hoc basis)

Busan – cut 3 flights weekly to become 4

Sanya – cut 2 flights weekly to 5

Shanghai – downgrade 10 flights weekly to an A320/321 (Dragonair operates 13 flights daily)

Fukuoka (daily), Dalian/Shenyang (3 flights weekly), Guilin (daily) and Xian (daily) will be suspended.

Guangzhou – Launch 2 daily flights from September (subject to government approval).


Appendix II

Other Cost Cutting Measures


Leases on two A330 aircraft and one A320 aircraft will not be renewed when they expire in June and October 2009

Earlier retirement of Classic freighters

Parking of 747-400 BCF

Flights redeployed to more profitable routes

Ad hoc schedule cuts in May to align with market demand

Hiring freeze implemented and voluntary unpaid leave offered for operating crew and Hong Kong ground staff

Advertising and marketing expenses trimmed

Aviation & Marine U.S.A.

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Kenny Tang, Dragonair's Chief Executive Officer (back row fifth from right), Colman Ng, Acting Deputy Director General of Civil Aviation (back row fourth from right), Group Captain Jones Wong, Commanding Officer of Hong Kong Air Cadet Corps (back row fifth from left), and Peter Sanderson, Dragonair's General Manager Operations (back row fourth from left) with the 16 cadets from the 2009 Dragonair Aviation Certificate Programme

Photo: Dragonair

More Young Cadets Fly High in the Dragonair Aviation Certificate Programme 2009


4 April 2009

(HONG KONG) Dragonair announced the launch of the Dragonair Aviation Certificate Programme for 2009 in which 16 cadets, aged 18 to 23, will participate - the highest number of cadets ever to be accepted. The programme runs from yesterday through to November 30.

Officiating at the programme kick-off ceremony were Dragonair Chief Executive Officer Kenny Tang, Acting Deputy Director General of Civil Aviation Colman Ng, and Hong Kong Air Cadet Corps Commanding Officer Group Captain Jones Wong.

Speaking at the ceremony, Kenny Tang said it was exciting to see the Dragonair Aviation Certificate Programme quickly establish itself as one of the airline’s signature events and grow stronger by the year.

Mr Tang said Dragonair remains committed to the long-term growth of aviation in Hong Kong, and the programme has a role to play. “We believe it is particularly important during times like these that we hold strong in our efforts to continue to nurture talents who can contribute to the future success of the local aviation industry,” he said.

In his speech at the launch ceremony, Colman Ng said: “Thanks to Dragonair for running this very successful Aviation Certificate Programme that offers an additional channel for young people who are genuinely interested in aviation to have the opportunity for a first hand experience in a wide range of areas in aviation through such a scheme.”

According to Group Captain Wong, the Programme “has set the scene for concerted efforts to advance collaborations with the industry. I hope that on this good foundation the Programme will continue to thrive.”

In addition to seeing an increase in the number of cadets and mentors participating in the programme, the support offered by various airport organisations has also been on the rise. The Airport Authority Hong Kong joined as a partner this year, taking the number of participating organisations to seven. Also offering their support are the Civil Aviation Department, Hong Kong Aircraft Engineering Company, Hong Kong Airport Services, the Airport Meteorological Office of the Hong Kong Observatory, the Aviation Security Company and the Government Flying Service.

The programme, first launched in September 2005, is a joint initiative between Dragonair and the Hong Kong Air Cadet Corps aiming to inspire a new generation of aviators in Hong Kong. Over the first three years of the programme, 34 enthusiastic young people got the opportunity to obtain firsthand experience of various aspects of aviation. Some of them have now become part of the local aviation industry, including working as pilots for Dragonair.

The cadets will undergo an eight-month mentorship programme working together with Dragonair pilots. There will also be training sessions, briefings and tours provided with the support of aviation-related organisations.

Aviation & Marine U.S.A.

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A Cathay Pacific Airways Airbus A340-300 during Takeoff Roll (V2)

Photo: oneworld Alliance