China Southern to expand aircraft fleet

China Southern Airlines Northern Company, a subsidiary of China Southern Air Holding Company, said yesterday it is going to introduce 23 Airbus A320 Family aircraft to replace its MD-82 and MD-90 aircraft.

The aircraft will be leased from the International Lease Finance Corporation, says Zhou Yongqian, vice-president of China Southern Air Holding Company.

The Shenyang-based carrier has taken delivery of four A319s this year and will receive seven more A319s in 2005, said Zhou, who is also president of China Southern Airlines Northern Company.

The remaining 12 will be either A319 or A320 aircraft, six in 2006 and six in 2007.

The aircraft will join the company's current Airbus fleet, which comprises eight A321s and six A300-600s.

"Introduction of the new Airbus aircraft on a large scale will rationalize our fleet, reduce training and maintenance costs, as well as increase passenger comfort," Zhou said.

Airbus President and CEO Noel Forgeard said Airbus attached great importance to the strategic partnership with China Southern Airlines Northern Company, which is introducing the A320 family aircraft as part of its fleet restructuring programme.

"I am confident that the new aircraft will give further impetus to the airline's outstanding achievements in passenger service," he said.

The A320 Family is the market leading single-aisle aircraft with around 3,200 aircraft sold to over 120 customers and operators all around the world.

Airbus's business in China has been steadily expanding since it entered the country in 1985.

The Airbus fleet in service in the Chinese mainland, Hong Kong and Macao has grown to more than 230 today from just 29 in 1995.

Airbus achieved 36 new orders and 36 deliveries in China last year, according to Laurence Barron, president of Airbus China.

It achieved 44 new orders and more than 20 deliveries during the first half of this year.

Barron said Airbus also hopes to secure the first Chinese customer for the 555-seat A380 jet before the end of this year.

The company is in talks with Chinese airlines, which have a keen interest in the A380 jets.

"One of the three airlines - China Southern Airlines, China Eastern Airlines and Air China - which have already established strategic partnerships with Airbus, is likely to become our first Chinese customer for the A380 jet before the end of this year," he said.

Hainan Airlines is also a possibility to become the first customer, as ties between Airbus and the Hainan company are developing, Barron said.

"We hope to achieve five to 10 orders before the end of this year and deliver one or two before 2008," he said.

The 2008 Olympics in Beijing and the 2010 World Expo in Shanghai will stimulate the development of China's airline industry, Barron said.

"We believe that the A380 will be an ideal vehicle to transport tens of thousands of athletes, sports fans, businessmen and tourists to China," he said.

Moreover, China's airline industry will grow rapidly as part of its rapid economic growth, and the A380 would be the best choice for airline operations on trunk routes between the hubs of Beijing, Shanghai, Guangzhou and other major cities, as well on international networks, he said.

Barron said he is optimistic that Airbus' success will be extended in China, which is expected to become the world's second largest airline market in the next 20 years.

Source: China Daily