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Southern Airlines Group: Signed a multi-faceted agreement to speed mail, cargo service in China

Southern Airlines Group, the parent organization of China Southern Airlines, has signed an extensive, multi-faceted business agreement with…

Southern Airlines<.> Group, the parent organization of China Southern Airlines<.>, has signed an extensive, multi-faceted business agreement with China Post Airlines – the first of its kind between a Chinese airlines group and the national postal service.

This is the very first time that a Chinese airlines group and the organization which moves the mail in China have entered into an agreement this vast and extensive. This is a significant opportunity for Southern

Airlines Group to expand our services to an entirely new market segment,
said Mr. Yan Zhi Qing, President, Southern Airlines Group.

Southern Airlines Group and China Post will implement an extensive business program, which includes:

– Southern Airlines Group flights will be used for postal mail transportation. Southern Airlines Group will provide China Post with its required flights at a low market rate and making full use of Southern Airlines Group`s extensive domestic network;

– Computer networks of both Southern Airlines Group and China Post will be integrated to facilitate mail dispatch, tracking and inquiry;

– Southern Airlines Group will cooperate with China Post Airlines in ground handling, cargo and staff training;

– China Post will act as an official agent to sell Southern Airlines Group`s tickets through the postal carrier`s numerous offices located throughout China, on the China Internet web site at www.183.com and at more than 180 customer service centers.

Both parties have contracted to work with one another to move – not only mail through the China Post transportation and distribution network – but also have China Post Airlines carry Southern Airlines Group`s cargo. Southern Airlines Group will assist China Post Airlines in the areas of mail transportation and ticketing, serve as a registered mail cargo agent, aid in bulk mail cargo distribution and cargo air transportation.

According to Mr. Yan, Southern Airlines Group is speeding up the consolidation with China Northern Airlines and Xinjiang Airlines. The new Southern Airlines Group, after the merger, will continue to take a leadership role in China`s aviation future.

He added that, the extensive air network offered by Southern Airlines Group, our market advantage and transfer connection services will strongly support China Post into this new era. Additionally, China Post possesses extensive nationwide offices, strong sea, road and transportation systems throughout

cities and townships, an extensive distribution network and broad relations throughout China. Backed up with these resources, an air carrier such as ours can rapidly increase its cargo and passenger transportation services with lower cost.

Mr. Yan said that Southern Airlines Group`s cargo transportation system will be extended with China Post Airlines assistance to every corner nationwide, with a `door-to-door` air express service. Both Southern Airlines Group and China Post `win` under this agreement.

All provincial and regional post offices throughout China will develop detailed materials for their customers to outline its new cooperation with Southern Airlines Group`s affiliated companies.

Senior management of both Southern Airlines Group and China Post agreed that each other`s internal consolidations and mergers would not affect this new agreement.

Present at the press conference and the signing ceremony (in addition to Mr. Yan) were Mr. Bao Pei De, Vice-Minister of the Civil Aviation Administration of China (CAAC), Mr. Liu Li Qing and Mr. Ma Jun Sheng, Director General and Vice Director General of the State Postal Bureau, Mr. Wu Ke Wang, Deputy

Director General of the CAAC`s Transportation Department, and Mr. Zhang Rui Ai, Vice-President of the Southern Airlines Group.

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