China Southern expands cargo fleet

09:04, July 16, 2010      

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China Southern Thursday announced the arrival of two new cargo aircrafts, making the total number of its cargo fleet six.

The Guangzhou-based carrier is expanding fast. Just one month ago, it added its 400th airplane, increasing its lead as Asia's largest airline by number of aircraft.

"Southern should have no problem using the new planes because the company already has launched 666 flights from home and abroad so far," Shao Fuqiang, spokesman of China Southern, Thursday told the Global times, adding that Chineseairlines still lag behind their American counterparts.

In an earlier interview, Shao said the carrier's fleet number is expected to reach 412 this year.

Liu Jiangyu, an analyst with Xiangcai Securities, warned, however, that expanding its fleet may impact the carrier's profit margins.

"If it keeps buying more planes, other players may become more competitive and reshuffle the market," Liu told the Global Times.

Earlier this month, Li Jiaxiang, head of Administration of Civil Aviation of China, attributed the profit growth in the aviation sector in the first half of this year to "a healthy relation between transport capacity and market demand".

Currently, Air China has 262 planes, and after China Eastern's merger with Shang-hai Airlines, the carrier has more than 300 planes.

Source: Global Times


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