China Southern Airlines & KLM Begin New Code Share Service; New Joint Code Share Service Between Amsterdam/Beijing

China Southern Airlines (NYSE: ZNH) (HKSE: 1055) and KLM Royal Dutch Airlines, have started joint code share service between Beijing -Amsterdam and Shanghai - Amsterdam.

The code share agreement, inked last July, was a landmark as the first agreement between a major Chinese carrier and one of the leading airlines in Europe.

In addition to KLM and China Southern launching their codeshare partnership on all their flights operated between the Netherlands and China, both airlines are participating in reciprocal loyalty program benefits.

China Southern currently operates the Beijing-Amsterdam service twice a week (CZ 345/346) using the state-of-the-art Boeing 777. KLM operates three Amsterdam-Beijing frequencies (KL 897/898) and two Amsterdam-Shanghai services (KL 895/896) at present using Boeing 747 aircraft.

KLM, will take a block of seats on each of CZ's current frequencies between Amsterdam and Beijing and publish these blocks under its own KL (code share) flight numbers. China Southern will take a block of seats on each of KL's current frequencies between Amsterdam and Beijing/Shanghai and publish these blocks under its own CZ (code share) flight numbers. As this new cooperation begins, China Southern Airlines' Beijing-Amsterdam service will increase to five times weekly and will also offer a new Shanghai to Amsterdam service three times a week.

KLM Royal Dutch Airlines, the world's oldest operating airline and a key member of the first global airline alliance "Wing," carried 16.1 million passengers in fiscal 2000/01. KLM and its partners serve more than 400 cities in 78 countries. The Dutch carrier operates a fleet of 126 aircraft. In 2001/01 KLM's net profit amounted to EUR 77 million (US$65.2 million).

China Southern Airlines is China's largest airline, carrying 16.7 million passengers in 2000. Its net profit in fiscal 2000 was US$60.6 million. Currently China Southern operates the nation's largest commercial fleet of 109 jet aircraft, including nine, Boeing 777. The airline operates 361 domestic, regional and international routes and serves more than 80 cities, both within China and internationally, providing convenient connections to Asia, Australia, Europe and the United States.

China Southern Airlines' new partnership with one of the leading airlines of Europe is but another step in its overall strategic plan - following code share agreements with Delta Air Lines in the United States; JAS in Japan; Vietnam Airlines and Asiana in Korea.

New connections:

China Southern Airlines

Beijing-Amsterdam service: CZ 345, every Tuesday and Friday, departure 13:00 (Beijing time) and arrival 17:20 (local time).

Amsterdam-Beijing service: CZ 346, every Tuesday and Friday, departure 20:00 (local time) and arrival 11:30 (Beijing time)

KLM

Amsterdam-Beijing: KL 897/898, every Monday, Thursday and Saturday, departure 17:15 (local time) and arrival 08:35 (Beijing time)

Amsterdam-Shanghai: KL 895/896, departure 14:20 (local time) and arrival 06:45 (Beijing time)

China Southern Airlines 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, Melbourne, Osaka, Penang, Phnom Penh, Seoul, Singapore and Sydney.