China Northern & Xinjiang Airlines Using China Southern Flight Code on Domestic Flights; Major Merger Developments.

Business/Travel Editors

GUANGZHOU, China--(BUSINESS WIRE)--Jan. 13, 2003

China Southern Airlines (NYSE:ZNH)(HKSE:1055), the largest airline in The People's Republic of China, is pleased to announce that China Northern Airlines and Xinjiang Airlines are now using China Southern Airlines' flight code -- CZ -- on all domestic (China) flights.

International flight code integration begins March 30.

This unified flight code usage marks just another step forward by the China Southern Air Holding Company in its practical integration of all three carriers into the China Southern Airlines "family."

China Northern Airlines' code CJ and Xinjiang Airlines' code XO have now faded away into the annals of China's domestic aviation history.

For example -- the previous flight CJ 6301 (between Shenyang and Guangzhou) has been replaced by CZ 6301 and flight XO 9301 (between Urumqi and Guangzhou) has been replaced by CZ 9301.

Simultaneously, the two carriers will use China Southern's transport vouchers, such as airline tickets and waybills and will use China Southern's three digital code 784 to replace China Northern's 782 and Xinjiang's 651.

Other merger developments include:

-- After flight code unification is completed the China Southern Air Holding Company will continue to offer safe, reliable flight operations and -- at this time -- does not plan to make any major adjustments in its flight scheduling and routing;

-- Previously purchased airline tickets will be honored on either China Northern or Xinjiang Airlines until used;

-- For the forthcoming Summer/Fall 2003 flight schedule, all three airlines plan to complement their route timetables to further streamline optimal routing to achieve convenient passenger flight schedules;

-- China Northern and Xinjiang Airlines will use China Southern Airlines' general transportation policies and business manuals to provide consistent marketing & sales policies, new management standards and passenger service operation procedures for ground handling and in-flight services;

-- All China Northern and Xinjiang Airlines aircraft will gradually be repainted in China Southern's distinctive white and blue logo colors and brilliant red kapok flower logo on each tail;

-- The frequent flyer programs of China Northern and Xinjiang Airlines will be integrated into China Southern Airlines' Sky Pearl Club as one unified FFP brand. China Southern's Sky Pearl Club will continue to be the largest frequent flyer program in The People's Republic of China with more than 1.7 million members;

-- China Southern Airlines plans to open new Sky Pearl Club Service Centers in Harbin, Shenyang and Urumqi ... in addition to the current 23 airport and city facilities;

-- China's largest airline will establish a new "mileage bank" in which FFP members of China Northern and Xinjiang Airlines will be able to pool their mileage into The Sky Pearl Club for free flights and flight upgrades.

Throughout this on-going code and merger integration, China Southern Airlines will continue to offer its customers with more destinations, more flight connections and superior in-flight services.

The largest airline in The People's Republic of China for the past 23 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, Islamabad, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Moscow, Osaka, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

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