China Southern Airlines & Vietnam Airlines Ink New Partnership; First Southeast Asian Code-Share Agreement For China's Largest Airline.

Business Editors & Travel/Airline Writers

GUANGZHOU, China--(BUSINESS WIRE)--July 25, 2000

China Southern Airlines (NYSE:ZNH) (HKSE:1055), the largest airline in The People's Republic of China, and Vietnam Airlines, the national airline of Vietnam, have today officially signed a code-share partnership agreement.

The pact is a milestone for China Southern Airlines, marking the first time China's largest airline has joined in cooperation with a Southeast Asian airline.

"We are pleased to extend the arms of fellowship to Vietnam Airlines," said Zhang Rui Ai, vice president, marketing, China Southern Airlines. He added that, "This new agreement heralds a new beginning between our two great airlines. Vietnam Airlines is poised to be a major carrier in Southeast Asia and we are pleased and proud to have them as our new code-share partner."

Mr. Zhang made his remarks at the official signing ceremony held here today. In attendance for Vietnam Airlines was Mr. Pham Ngoc Minh, Vice President. Also attending for China Southern Airlines was Mr. Yan Zhi Qin, President.

The new code-share partnership between China Southern Airlines and Vietnam Airlines will be on the Guangzhou -- Ho Chi Minh route. China Southern Airlines has agreed to sell tickets with its CZ code between the two cities ... with Vietnam Airlines (VN) selling seats on its round-trip service from Ho Chi Minh to Guangzhou.

Both airlines have agreed to sell 120 seats per week.

Currently, China Southern Airlines offers three weekly flights between Guangzhou and Ho Chi Minh every Wednesday, Friday and Sunday afternoon. Vietnam Airlines operates two weekly flights every Monday and Thursday afternoons.

Since 1998, China Southern Airlines has steadily increased its market share in the Sino-Vietnamese market and carried more than 22,000 passengers in the first half of 2000.

With headquarters located at Baiyun International Airport, Guangzhou, China Southern Airlines operates a modern fleet of more than 100 state-of-the-art aircraft, including nine Boeing 777.

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 and 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.