China Southern Airlines, one of the top three airlines in China, yesterday signed the Global Airline Alliance Adherence Agreement (GAAAA) with SkyTeam, a key global airline alliance.

The event marks a formal and crucial step for China Southern, outlining its commitment to the stringent set of standards officially recognized by members of the alliance.

Liu Shaoyong, chairman of China Southern, said his company will take immediate measures to modify its operation and management in strict accordance with the GAAAA.

He said that the airline will make efforts to improve handling services, upgrade facilities and offer training programmes to at least 75 percent of its staff according to the practices of the alliance.

China Southern will also put in place bilateral code-sharing and frequent flyer and lounge agreements with each of the SkyTeam carriers before it officially becomes a member of SkyTeam.

"Hopefully, China Southern will accomplish the related requirements and become an official member of SkyTeam in the latter half of 2007."

He said membership in the SkyTeam alliance will enable China Southern to integrate its resources with other SkyTeam members, lower operation costs and sharpen its global competitive edge.

"Our international route network and flight density will greatly expand, while our passengers will be able to enjoy many more convenient and improved services and more favourable fares," he said.

China Southern operates over 1,000 flights a day. The 10 member airlines of SkyTeam operate more than 2,000 aircraft and nearly 15,000 daily flights to 728 destinations in 149 countries.

As required by the alliance, China Southern will guarantee that 80 percent of the 27 airports on the mainland that manage China Southern's flights will be improved to meet SkyTeam standards one year after China Southern joins the alliance, and 100 percent in two years.

On behalf of the SkyTeam alliance, Yang Ho Cho, chairman and CEO of Korean Air, said China Southern's membership will be beneficial to all alliance members.

"China Southern is located within an area identified as a strategically crucial region of expansion for SkyTeam. Its joining will expand SkyTeam's services in China and add the well-positioned, modern hub of Guangzhou Baiyun International Airport to the alliance's hub network," Cho said. "SkyTeam passengers can look forward to increased travel options in a region experiencing strong travel demand."

SkyTeam's network includes hubs in major airports worldwide, such as Air France's Paris Charles de Gaulle hub, Korean Air's hub at Incheon International Airport and Aeromexico's Mexico City Airport hub, the largest in the Latin American region.

Yang Yuanyuan, minister of the General Administration of the Civil Aviation of China, spoke highly of China Southern's vanguard position in seeking to join a global airline alliance.

"What China Southern has been doing marks a milestone for China's airlines in the globalization process."

The senior official said he expected China Southern to be an example for other domestic airlines which could also join in global competition.

Two other Chinese airlines Air China and Shanghai Airlines signed a memorandum of understanding (MOU) with Star, another leading airline alliance, in May.

(China Daily June 29, 2006)