Southern Airlines Group and China Post Ink Revolutionary Mail Pact; Multi-Faceted Agreement to Speed Mail, Cargo Service in China

Southern Airlines Group, the parent
organization of China Southern Airlines (NYSE:ZNH) (HKSE:1055)
(www.cs-air.com/en), the largest airline in the People's Republic of China,
has signed an extensive, multi-faceted business agreement with China Post
Airlines — the first of its kind between a Chinese airlines group and the
national postal service. The announcement was made at a news conference here in Beijing. "This is the very first time that a Chinese airlines group and the
organization which moves the mail in China have entered into an agreement this
vast and extensive. This is a significant opportunity for Southern Airlines
Group to expand our services to an entirely new market segment," said Mr. Yan
Zhi Qing, President, Southern Airlines Group. Southern Airlines Group and China Post will implement an extensive business
program, which includes:
— Southern Airlines Group flights will be used for postal mail
transportation. Southern Airlines Group will provide China
Post with its required flights at a low market rate and making
full use of Southern Airlines Group's extensive domestic
network;
— Computer networks of both Southern Airlines Group and China
Post will be integrated to facilitate mail dispatch, tracking
and inquiry;
— Southern Airlines Group will cooperate with China Post
Airlines in ground handling, cargo and staff training;
— China Post will act as an official agent to sell Southern
Airlines Group's tickets through the postal carrier's numerous
offices located throughout China, on the China Internet Web
site at www.183.com and at more than 180 customer service
centers. Both parties have contracted to work with one another to move — not only mail
through the China Post transportation and distribution network — but also
have China Post Airlines carry Southern Airlines Group's cargo. Southern Airlines Group will assist China Post Airlines in the areas of mail
transportation and ticketing, serve as a registered mail cargo agent, aid in
bulk mail cargo distribution and cargo air transportation. According to Yan, Southern Airlines Group is "speeding up the consolidation
with China Northern Airlines and Xinjiang Airlines. The new Southern Airlines
Group, after the merger, will continue to take a leadership role in China's
aviation future." He added: "The extensive air network offered by Southern Airlines Group, our
market advantage and transfer connection services will strongly support China
Post into this new era. Additionally, China Post possesses extensive
nationwide offices, strong sea, road and transportation systems throughout
cities and townships, an extensive distribution network and broad relations
throughout China. Backed up with these resources, an air carrier such as ours
can rapidly increase its cargo and passenger transportation services with
lower cost." Yan said that Southern Airlines Group's cargo transportation system will be
extended with China Post Airlines assistance to "every corner nationwide, with
a `door-to-door' air express service. Both Southern Airlines Group and China
Post `win' under this agreement." All provincial and regional post offices throughout China will develop
detailed materials for their customers to outline its new cooperation with
Southern Airlines Group's affiliated companies. Senior management of both Southern Airlines Group and China Post agreed that
each other's internal consolidations and mergers would not affect this new
agreement. Present at the press conference and the signing ceremony (in addition to Yan)
were Mr. Bao Pei De, Vice-Minister of the Civil Aviation Administration of
China (CAAC); Mr. Liu Li Qing and Mr. Ma Jun Sheng, Director General and Vice
Director General of the State Postal Bureau; Mr. Wu Ke Wang, Deputy Director
General of the CAAC's Transportation Department; and Mr. Zhang Rui Ai,
Vice-President of the Southern Airlines Group. Ranked No. 1 in passengers carried in China for the past 21 years, China
Southern Airlines, www.cs-air.com/en, 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,
as well as international service, including Amsterdam, Bangkok, Fukuoka,
Hanoi, Ho Chi Minh City, Kuala Lumpur, Jakarta, Los Angeles, Manila, Osaka,
Penang, Phnom Penh, Seoul and Singapore.
CONTACT: China Southern Airlines
Jeff Ruffolo, 909/734-6141
Fax: 909/734-6146
E-mail: [email protected] URL: http://www.businesswire.comBUSINESS WIRE, 06th August 2001

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