China Southern Airlines ``Turning the Corner'' on Far East Cargo Service; USA to China Eastbound Cargo Flights Hitting 95% Load Factors.

Business/Travel Editors

CHICAGO--(BUSINESS WIRE)--July 26, 2001

China Southern Airlines (NYSE:ZNH) (HKSE:1055), the largest airline in the People's Republic of China, announced that its eastbound Boeing 747 cargo service from the United States to China is reaching maximum capacity -- with some flights capping out at 95% loads.

China Southern Airlines operates a Boeing 747-400 three-days-a-week and its all-cargo service originates from Shenzhen International Airport in Southern China with direct service to Chicago. Eastbound service from the USA to China departs O'Hare International Airport with a stop in Shanghai before returning to Shenzhen.

"Shanghai is really the key to our North American clients. Shanghai is the stopping point for many U.S. companies for some developing cities around Shanghai like Hangzhou, Suzhou and Qingdao. Several of our customers, including GM, Lucent and Motorola are moving a lot of freight into these markets. In addition, many of these companies have started to expand their factories in the Far East, especially China. Our eastbound loads since first week of June have been no less than 80%, closer to 95%," reported Wayne Chen, general manager, Cargo.

This is very good news for China Southern's all-cargo service that began April 12, 2000. Westbound service from China to the USA has been clipping along at a record pace but service from the USA to China was "less than brisk." A cargo stopover in Shanghai from Chicago was added in August 2000.

Chen attributes the turnaround in eastbound traffic from the USA to China to good "old fashioned, one-on-one personal sales."

"When a freight forwarder has between five and eight different airlines to choose from to move his cargo to China, why choose China Southern Airlines? Because we offer an outstanding cargo service with our care, not just price. That's it," said Chen.

Named the Best Airline in China by SKYTRAX, China Southern Airlines, www.cs-air.com (Chinese), www.cs-air.com/en (English), 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, Hanoi, Ho Chi Minh City, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Osaka, Penang, Phnom Penh, Seoul, Singapore and Sydney.

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