China Southern's All-New Capital Airport Terminal One Reopens; Significantly Remodeled Beijing Facility Opens For Business.

BEIJING -- China Southern Airlines (NYSE:ZNH) (HKSE:1055) -- www.cs-air.com/en -- the largest airline in The People's Republic of China, is pleased to announce that after months of reconstruction and renovation, Terminal One at Beijing's Capital Airport has opened again with an all-new look, exclusively for China Southern Airlines.

Effective immediately, all China Southern flights departing from and arriving at Beijing will use this new Terminal. All passengers departing on China Southern will also have their boarding procedures completed here.

China Southern signed an agreement with Capital Airport to jointly manage this renovated Terminal One and this new cooperation program between the airport and the airline has a far-reaching significance in China's civil aviation industry, although it is common in Europe and America where the air transportation industry is highly developed.

Since September 20, China Southern Airlines and the subsidiaries of China Southern Air Holding Company -- including China Southern Airlines Northern Company, China Southern Airlines Xinjiang Company and Xiamen Airlines -- will operate their domestic flights at Terminal One. In addition, Sichuan Airlines (China Southern holds shares) will also move its flights to this Terminal Building.

With this terminal, China Southern will be able to offer passengers more efficient transportation services, play a more constructive role in developing its transfer business and aid in forming a hub air route network.

Beijing Capital International Airport is the largest gateway airport in China's mainland. In 2002, aircraft takeoffs and landings at the Capital Airport topped 240,000, passenger transportation volume peaked at 27 million and cargo and mail traffic carried amounted to 670,000 tons. With the rapid increase in operational rate of 28%, Beijing Capital International Airport Co. Ltd., achieved a net profit of RMB 506.8 million in 2002.

Terminal One at Capital Airport was put into use on January 1st, 1980. Spanning a total area of 78,841 square meters, it was once the largest and modern terminal building in the nation and has undergone reconstruction and extension four times (1989, 1992, 1993 and 1994). Today the newly renovated terminal has two satellite islands, 13 boarding gates and 50 check-in desks and will be able to handle a quarter of total passengers at the Capital Airport.

In 2002, China Southern's incoming and departing passengers at Capital Airport reached 5.6 million. China's largest airline is currently operating 37 routes at Beijing, 1,192 flights per week including 1,125 domestic flights and 67 international and regional flights.

Second to Air China, China Southern has become the leading airline with the most incoming and departing fights at Capital Airport. From January to July 2004, China Southern's passengers departing from and arriving at the Airport has surpassed 3.3 million, constituting 25% of the total market share.

"China Southern anticipates it will transport a total of 8 million passengers at the Capital Airport in 2008 ... and Terminal One with its exciting new renovation can easily satisfy the need of its constantly increasing business," said Mr. Li Kun, Vice President, China Southern Airlines.

After consolidation with China Northern Airlines and Xinjiang Airlines, China Southern will continue to be "bullish on Beijing which is an ideal connecting point of China Southern's air routes network," said Mr. Li.

He added that with the reopening of Terminal One, China Southern "will implement its 'Beijing Strategy' by making full use of Beijing's favorable conditions for passengers transferring from one flight to another. With this new terminal, China Southern will clearly be able to optimize its air route resources and aggressively strengthen its domestic network."

In the new 2004 winter-spring flight schedule, China Southern plans to increase its weekly flights at Beijing from 1,192 to 1,500 and will launch approximately 10 new domestic routes to further solidify its Beijing air market share. Additionally, China Southern, through the new Beijing China Southern Ground Service Company (jointly established by China Southern and Capital Airport), will provide passengers with more comfortable and more convenient personalized services.

The renovation of the Terminal One at Capital Airport has been designed with true feng shui concept of "Chinese national culture, China Southern's distinctive features and humanized service," in the hopes that passengers can get more customized ground service and with improved service quality, passengers will feel at home both on the ground and in the air. Feng shui (pronounced "fung shway") is the ancient Chinese system of arranging environments to maximize their internal harmony, and the happiness of the people who use them.

The renovation project has kept the original structure of the building, but completely renewed all interior facilities such as water, heat, electrical and air conditioning. All girders, planks and pillars have been steel reinforced to withstand an 8.0 magnitude earthquake. New interior decoration features simplicity and brightness, with the main color being gray, in an effort to highlight the main function of the building and the flight information in the public halls and rooms.

"The chief goal of the commercial development in the renovated Terminal One is to satisfy the discriminating needs of customers by providing high-quality and varied commercial products and services with reasonable prices, as well as maximize the profit for the airport by increasing the sales volume per unit area in the terminal. World famous catering concession brands such as KFC, Lejazz, Starbucks, and UBC Coffee have also been introduced to Terminal One," added Mr. Li.

Terminal One Service Guide

Basic Services 

Terminal One of Beijing's Capital Airport provides comprehensive ground services for China Southern's passengers, including:

Inquiry Service

A Passenger Inquiry Desk has been set up in the Comprehensive Service Area at the center of the Departure Hall (2nd Floor). If you have any difficulties or questions please go to this desk for assistance. A special hotline information desk is available by phoning (8610) 6454-0666 or (8610) 6454-0777.

Check-in Service

There are 50 check-in desks in the Departure Hall. Check-in procedures for China Southern Airlines flights are assigned to varied check-in desks. If you are flying to the middle-south, the south, or Southwest China, please go to any of these desks on the east side of the Departure Hall to check-in. If you are flying to Northeast China, please check-in at the west-side desks.

Instant Airline Ticketing

In Terminal One, there are six ticket desks in the Comprehensive Service Area at the center of the Departure Hall. If you need to purchase a last minute ticket, or are applying for a standby ticket, these six desks are fully staffed to assist your needs. This hotline information desk is available by phoning (8610) 6454-0888 or (8610) 6454-0799.

Security Check

You will find 10 security check channels along the north side of the Departure Hall. Please prepare your ticket, boarding pass and valid ID prior to proceeding to the security check.

Boarding Gate Service

There are 13 jetway boarding gates and two remote boarding gates. If your boarding gate is between A03-A08, please board at the east satellite hall (turn right after the security check). If your boarding gate is between A09-A15, please board at the west satellite hall (turn left after the security check). If your boarding gate is between A01-A02, A16-A17 please board at the remote boarding gates (turn left after the security check).

Baggage Inquiry

There is a Baggage Inquiry Desk in the Baggage Reclaim Hall (1st Floor). Any inquiries in respect to baggage can be made here or phoning (8610) 6454-0558.

Ground Transportation

Three alternative ground transportation services are available from Terminal One:

Private cars -- A parking area with 800 slots is open 24 hours a day, where car-cleaning and repair services are also available.

Taxis -- There is a Taxi Dispatching Center at the gate of the Arrival Hall (1st Floor), where you can take a taxi into Beijing or other destinations. The Taxi Dispatching Center will record the taxi's number and its license number. Please remember the car number and leave with the receipt.

Airport buses -- Airport buses are operated every 15 minutes from the gate of Arrival Hall into Beijing. Bus fares are 16 RMB and there are five fixed lines to select.

Special Services

Beijing's China Southern Airlines Ground Service Company has created many distinctive and innovative brand services to "humanize" the new terminal's transportation experience, including creating a "home away from home" ambiance for First and Business Class passengers; China Southern VIP passengers; Gold/Silver card holders of China Southern's Sky Pearl Club and China Southern's key customers which will integrate the highest standards of ground/in-flight services to offer the very best in customer service.

--Exclusive check-in desks: specifically, K26 and K27 for First Class passengers; K28 and K29 for Business Class passengers -- no matter which flight you take;

--Special staff available to get your boarding pass and handle all check-in procedures for you;

--At either the First or Business Class lounge, you can enjoy distinctive snacks and drinks, read the latest International newspapers and periodicals; watch TV, surf the Internet, free print and photocopy service, get the latest updated tourist news and local cultural exhibitions and have full use of the exclusive smoking room and free shower rooms;

--Exclusive red carpet security check channel -- behind the first-class check-in desk.

China Southern Connections

China Southern's passengers who transit at Terminal One will be able to use five transit service desks at the east and west satellite halls (2nd Floor); domestic transit service area (1st Floor); International transit service area (1st Floor) and transiting passengers' concourse.

--Under normal conditions, a connection time within 60 minutes is guaranteed for China Southern passengers who transit from one China Southern domestic flight to another;

--Under normal conditions, a connection time within 120 minutes is guaranteed for China Southern passengers who transit from one China Southern domestic flight to the airline's International flights;

--Passengers with a connection time from between two and four hours can rest in the connection waiting area and enjoy various catering, shopping and recreational activities with preferential prices provided by concession shops;

--Passengers with a connection time of more than four hours will also have free taxi booking, hotel booking by staff and discounted tours;

--China Southern passengers who transit during late evening hours will be provided free overnight hotel accommodations.

E-commerce & Self-Help Check-In

This service is aimed to provide convenient and quick service for China Southern e-ticket passengers:

--Self-check-in machines have been installed in security check channels, First/Business Class check-in areas and around the comprehensive service counters. The check-in kiosks are simple to operate and all China Southern e-ticket passengers can select their own seats while printing out their own tickets and boarding passes;

--Two exclusive e-ticket check-in desks at K32 and K33 are available and e-ticket passengers can check-in anytime without the limit to their flights;

--E-commerce desks are available in the comprehensive service area handling issues such as cancellation, ticket changes, or transfers for e-ticket passengers.

Frequent Flyer Program

--China Southern's Sky Pearl Club Service Center is located in the comprehensive area in the center of the Departure Hall, where you can immediately become a member of the club after completing the simple application process;

--Members of The Sky Pearl Club can make inquiries concerning mileage and update their mileage records;

--Services such as exchanging mileage awards for free tickets and class upgrades are immediately available;

--Two exclusive check-in desks located at K30 and K31 are open for frequent flyers, where they can check-in anytime with no limit to their flights.

"Loving Angel" Service

--This service is provided to passengers with special needs including unaccompanied minors, the elderly, handicapped passengers and others who just need some additional assistance to board their aircraft. These passengers can receive personalized assistance (except for stretchers) from the special passenger desk in the comprehensive service area in the center of the departure hall;

--Special ground staff will be standing by to assist passengers prior to and immediately from boarding their flight;

--Special boarding services can be arranged in the exclusive waiting area;

--Paid ambulance service and nursing.

Special Service For Flight Delays

--Immediate free meals will be provided to passengers for delayed flights: 50 minutes for 100 meals to arrive; 60 minutes for 200 meals to arrive; 75 minutes for 300 meals to arrive and 40 minutes for drinks and snacks such as cookies and instant noodles;

--Fast hotel accommodation arrangements for delayed flights. China Southern Airlines guarantees that all passengers will be provided hotel arrangements within one hour after the flight delay is confirmed and all passengers will be transported back to the terminal within 45 minutes after the new departure time is confirmed;

--Passengers delayed for no more than three hours will be invited to wait in the delayed flight waiting lounge;

--Special staff will be available to assist in making ticket changes and transfers for First/Business Class passengers, VIP passengers, Gold/Silver card holders of The Sky Pearl Club, key customers and e-ticket passengers;

--A special service hotline is available to provide flight information inquiries by dialing (8610) 6454-0666 and (8610) 6454-0777.

The largest airline in The People's Republic of China for the past 25 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, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.

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