First domestic FFP Airline Partner for China Southern Airlines

China Southern Airlines has expanded its cooperative marketing agreement with Sichuan Airlines to include full cooperation in each airline's respective frequent flyer programs.

This new agreement between Sichuan Airlines marks the first domestic airline partnership for China Southern Airlines.

"Clearly this frequent flyer partnership will be a major boost to the more than 150,000 FFP members of Sichuan Airlines as they can now 'earn and burn' miles on any China Southern Airlines' flight," said Mr. Li Kun, Vice President, China Southern Airlines.

Effective immediately, Sky Pearl Club members can take advantage of earning and burning miles on any 3U (Sichuan Airlines) flight - as well as on any CZ (China Southern Airlines) flight.

Under this new cooperative program, Sky Pearl Club members flying on any Sichuan Airlines' flight are requested - upon boarding - to slide their membership card through special key reader machines within the cabin of the aircraft - rather than providing their membership card upon airport ticketing and check-in.

China Southern Airlines recently integrated four frequent flyer programs of the three airlines under its management, specifically The Blue Sky and Lilac Club(s) of China Northern Airlines and The Swan Club of Xinjiang Airlines into one massive FFP program totaling more than 1.7 Million members.

All current members of The Sky Pearl Club can fly any of the three airlines and accrue miles good for free award travel of China Southern, China Northern and/or Xinjiang Airlines.

Through June 1, 2003, China Southern Airlines is launching a major double-award mileage promotion on more than 170 selected routes, (the majority departing from Northeast China) using the flight code CZ.