02.08.2005 19:19:00

China's Largest Airline Featured Carrier At Japanese Confab; China Southern's Li Kun To Highlight Low Cost Airline Symposium

China Southern Airlines (NYSE: ZNH)(HKSE: 1055)(SHA:600029) -- www.cs-air.com/en -- the largest airline in ThePeople's Republic of China, is pleased to announce that Mr. Li Kun,COO, will be a headlining speaker at this week's second annual NorthAsia Low Cost Airline Symposium being held at the brand-new KitakyushuAirport, currently under construction in Southern Japan.

At the conference, slated for this Thursday and Friday, Mr. Li isexpected to review the opening up of Chinese civil aviation as well asthe growth and future goals of China Southern Airlines during hispresentation, entitled "Looking Into The Future ... Coexistence ofOpportunities & Challenges."

The Second Annual North Asia Low Cost Airline Symposium on August4-5, 2005 is convened by the Centre for Asia Pacific Aviation andgovernment bodies, aviation organizations, airlines, airports andsuppliers will attend this landmark event, which is expected toattract several hundred delegates.

According to Mr. Li, "During the next 15 years, the Chinese civilaviation industry will be faced with extraordinary opportunities andchallenges including rapid growth of the national economy; China'sentry into the World Trade Organization; hosting the 2008 SummerOlympic Games in Beijing; the 2010 World Expo in Shanghai and theAsian Games in Guangzhou ... as well as reforms and consolidationwithin the civil aviation industry."

He will add that, "as we strategically review the future aviationmarket, we can forecast that by the Year 2010, the air transportationbusiness of China Southern Airlines will grow by an annual rate of12%. To obtain this ambitious goal, we not only need to increase ChinaSouthern Airlines' capacity and optimize the structure of our fleetbut also tap into the potential of the current fleet and enhance theefficiency of aircraft utilization, so to drive the growth of trafficvolume. For a considerably long period of time, the company willcontinue to pursue its current strategy of focusing on the domesticmarket."

Mr. Li is expected to further outline China Southern Airlines'future plans, stating, "We plan to mainly introduce 150-seat and200-seat aircraft, which are two major types of aircraft that ChinaSouthern Airlines now primarily operates on its domestic routes andsome of its international routes. These two types of aircraft aresuitable for the development of the company given their proper sizeand excellent economics. As we further consolidate and develop thedomestic market, we will also steadily tap into the Internationalmarketplace. We will introduce a certain number of long-rangewide-body passenger airplanes and freighters, including the superjumboAirbus A380, so as to enhance our competitiveness in the Internationalmarketplace.

"The types of aircraft, flight frequencies and schedules must beadjusted according to market demand and take advantage of ourextensive network. In terms of route network construction, ChinaSouthern Airlines will continue to focus on domestic routes as itsteadily taps into the International market, integrate its hubs withpoint-to-point routes, build up its Guangzhou and Beijing hubs anddevelop five major markets, namely, Beijing, Guangzhou, Hong Kong,Shenzhen and Shanghai."

Mr. Li explained that, "At the same time, we will make more inputinto our routes in the eastern, southwestern and northwestern parts ofChina to improve our domestic route network. We will add morefrequencies to our current International routes and plan to launchsome new European and US routes with flights departing from ourBeijing and Guangzhou hubs.

"We also plan to operate Airbus A380 aircraft on thesetrans-continental routes, establishing connections with our domesticflights through flight number integration. Since Urumqi is an idealgateway that links China with the Middle Asia, West Asia, Middle East,Russia and countries of the former Soviet Union, we will take fulladvantage of its favorable geographical location to operate smalleraircraft on some international routes to these surrounding countriesand gradually add flight frequency. We will continue to operate ourroutes to Southeast Asia and Northeast Asia, which are traditionallyadvantageous International routes for China Southern Airlines whoseflights depart from Guangzhou, Dalian and Shenyang."

For additional information regarding this conference, please go tothe Centre for Aviation web site at:www.centreforaviation.com/conferences.

The largest airline in The People's Republic of China for the past26 years, China Southern Airlines -- www.cs-air.com/en -- connectsmore than 80 cities around the globe. Major business and vacationdestinations served in China include: Beijing, Chengdu, Guangzhou,Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan and as wellas international service, including: Amsterdam, Bangkok, Fukuoka,Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta, LosAngeles, Manila, Melbourne, Moscow, Osaka, Paris, Penang, Phnom Penh,Seoul, Singapore, Sydney and Tokyo.

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

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