Introducing China Southern
Airlines
The parent company of China Southern Airlines Ltd is China
Southern Air Holding Co, a state-owned enterprise that was supervised by State-owned
Assets Supervision and Administration Commission of the State Council. They provide passenger, cargo, mail delivery
and other transport services throughout the world. With 840 passenger and cargo
transport aircrafts and the most developed route networks, they have successfully
served 140 million passengers annually. They are ranked 1st in Asia
and 3rd in the world according to fleet scale and passenger
turnover. Currently employing more than 100 831 staff, they are considered the
safest Chinese airline, receiving 2 top safety awards. Their headquarters are located in Guangzhou
with 16 branches and 8 holding aviation subsidiaries and 22 domestic business
departments, including locations in Hangzhou, Qingdao, Sydney and New York.
How interesting! Pretty cool that they are rated 3rd in the world, and that number of employees is huge. I'll have to find out a little bit more about my company in terms of employees etc and compare that with yours!
ReplyDeleteThanks Kadiesha. They have the largest number of transport aircrafts, most developed route network and largest annual passenger throughput. Interestingly, they have just cancelled a huge contract with Boeing of 64 additional aircraft but are receiving a $4bill capital input. I'm going to have to do some digging to find out how they intend to invest it!
ReplyDeleteIt's incredible learning about this company. I have heard of them before and was excited to find out that they are highly rated and fly to my faviourte city, New York! Your post has inspired me to do some more reading on how my company is ranked in terms of safety. Great work!
ReplyDeleteWhat a great company to attain. I have flown with China Southern Airlines and found the flight experience pretty good considering it was a 9+ hour flight. I am not surprised that they are ranked number 1 in Asia and number 3 in the world. You have provided some very interesting facts! I look forward to reading future blogs.
ReplyDeleteThe above comment is from me - Shalika (https://shalikaking.wordpress.com/blog-feed/) - by the way. I couldn't work out how to show my name and log in. :)
ReplyDeleteThanks Shalika, I was wondering who was 'unknown'! I'm not sure how to rectify that issue either. It's great to have some feedback that matches. One of their values is a focus on great customer service. After 9 hours in the air, it's good to know they looked after you.
DeleteHi Sharon,
ReplyDeleteThank you for posting some comments on your company as I am struggling to find other students blogs out there who have already posted some information in order to start a discussion.
I am envious that you have been assigned a business in the airline industry. From my understanding, airlines are a very hard business to run and there is a lot of stories out there of smaller and even larger airlines going bust. It seems like airlines have more bankruptcies than any other industry. I do not have evidence to support this, I am just simply stating this from my observations over the years from watching the news.
There has even been a joke coined on how hard it is to run a successful airline business "If you want to be a millionaire, start with a billion dollars and launch a new airline" - Richard Branson.
I look forward to following your developments on your firm as the unit progresses.
If you would like to view my blog to read about my firm, you can find it via the below link.
https://itsacrrualworld.wordpress.com/step-3-financial-statement-analysis/
Kind regards,
Daniel
Thank for the feedback Daniel. I thought it was Warren Buffet's quotes...maybe they both said it! From my observations, it's the high costs involved in suppling the service but realativly low overheads to administer. ie, high costs to buy and maintain planes but low cost to sell tickets. This could be the reason for high bankruptcies. It will be interesting to piece the information from the financial statements to find the real story.
DeleteHi Sharon,
ReplyDeleteThe number of employees they have is just staggering! Imagine all the data they look after for employees, flights, bookings...Is technology an issue for China Southern or do they seem fairly on top of it?
I found an interesting comment at flightglobal.com - Civil Aviation Administration of China has also moved to ease its policy of having only one operator on each long-haul route, paving the way for greater competition in the segment. While the "one route, one airline" policy prevented carriers from competing too aggressively on the same sectors, airlines can now possibly operate on an existing long-haul route should there be sufficient consumer interest, and if it helps in hub development and improving service quality.
I wonder if this policy will help Southern China compete better against Air China?
Oh wow, that's a juicy piece of information, Thanks Kim! It explains a lot as to why they have only expanded their passenger and cargo services until recently. I can't help but wonder if there is a 'buy off' with the govt policy, the new capital injection..from the parent govt owned state company and the on the ground 'Belt and Road Iniative'. I would assume that yes it does create better competition. I'll have to compare Air China's 5 P's to develop a better understanding.
ReplyDelete