Report on HAFFA visitation to Headquarter of China Southern (CZ) and Guang Zhou Baiyun International Airport


By the invitation of China Southern Airlines, a delegation of 13 HAFFA Committee members under the leadership of our Chairman Mr. Victor Mok went to Guang Zhou on 29 May, 2002.

At the beginning of the meeting, we received a warm welcome by Mr. Li Kun, Executive Vice President of CZ and Ms. Wei Yun Ju, Deputy General Manager of CNAC. Mr. Mok gave a keynote speech on the background of our corporate members, the logistics development of Hong Kong and the Pearl River Delta with highlights on the need for all to work closely so as for CZ and its aviation associates to build a total ¡§win-win¡¨ working relationships.

More ideas and information of cargo operations were exchanged during the meeting and follow on-site visit of the Guang Zhou Baiyun International Airport. Summary of findings are as follows:

1. CZ operates the most extensive route network in China, offering 385 routes serving 87 destinations within China and internationally. The company continuously has been ranked #1 in terms of cargo carriage. In 2001, CZ carried 397,400 tonnes, which accounted for 23.07% of China¡¦s total cargo throughput.
   
   
2. CZ¡¦s worldwide headquarter is based in Guangzhou. The CZ network uses Baiyun Int¡¦l Airport in Guangzhou as its aviation hub - covering the whole part China and Asia as well as Europe, Australia and the United States. Currently, CZ is actively taking part in the merger affairs with China Northern Airlines and China Xinjiang Airlines. After the merger is completed, the fleet will increase to 180 aircraft and the route network will give a boost of over 600 routes.
   
   
3. At present, they have 3 cargo freighters flying from Shenzhen per week. In light of the new economic environment of China¡¦s entry into the World Trade Organization and the booming economy of the southern part of China - made CZ wanted to develop Beijing, Shanghai, Guangzhou and Shenzhen as bases for their aviation business.
   
   
4. When Committee members looked at the construction model of the Guang Zhou Baiyun International Airport, CZ said they are actively taking part in the infrastructure construction of the airport cargo terminal. The basic cargo infrastructure is projected to be completed and in operations between the last quarter of 2003 to 2004.
   
   
5. The new cargo terminal - CZ will hold 70% of the stock share - will have the state-of-the-art facilities. Offering a total floor space of 105,000 square meters which will be the largest terminal in China and will have the capability of handling 800,000 tonnes per year.
   
   
6. Also, CZ will make use of its merger advantage and plans to set up a complex network - using Guangzhou as its hub for domestic and international transportation. Using Shenyang (Ân¶§) and Urumqi (¯Q¾|¤ì»ô) for regional transferring.
   
   
7. To strengthen the management team, CZ has integrated and streamlined its organization structure and set up a separate cargo department in November last year. More than 1,200 CZ staff are working to provide service for our members. Interested members are welcomed to call the HAFFA secretariat to obtain the CZ contacts.