Strategic planning of China Southern Airlines

• Main Author: Shaoguang, Xue
• Format: text
• Language: English
• Published: Animo Repository 2006
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4563
• Institution: De La Salle University

China Southern Airlines Company together with its subsidiaries is the largest airline in The People's Republic of China . The Group continues to rank first among all Chinese Airlines in terms of volume of passenger traffic, number of scheduled flights per week, number of hours flown, number of routes and size of aircraft fleet. They have the most extensive domestic route network of all Chinese Airlines and operates more than 320 routes 260 domestic, 39 international and 20 Hon Kong routes. In more than 85 destinations, they have 2,900 scheduled flights per week. China Southern Airlines also offers service to key international destination including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Osaka, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo. China Southern Airlines is currently merging with the former China Northern Airlines (located in Shenyang) and Xinjiang Airlines (located in Urumqi). With the additional strength and market reach of both these regional carriers, China Southern has developed a massive triangle route network with Urumqi in the Far West - Shenyang in the Northeast and Guangzhou in the South - providing passengers and cargo customers with an extensive market reach to any small, medium and large destination in the nation. Most of the fleet aircraft is held under finance and operating leases. The average age of the Group fleet is 6.5 years. The purpose of this paper is to study the current business environment of the Airline Industry in China, and anticipates the future changes in the macro-environment which will bring opportunities or threats to the industry. This is to achieve both practically by investigating the environment of the industry and theoretically by studying some theoretical framework and models concerning strategic analysis, then examines the internal strengths and weaknesses of China Southern Airlines.