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China Air Transport Industry to Recover in Q3 09

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GUANGZHOU, Jun 27, 2008 (SinoCast via COMTEX) -- ZNH | Quote | Chart | News | PowerRating -- China's air transport industry is expected to suffer great depression through the first half of 2009, said Liu Shaoyong, chairman of China Southern Airlines Company Limited (SHSE: 600029; SEHK: 1055; NYSE: ZNH | Quote | Chart | News | PowerRating) on June 25, 2008.

As a leading air carrier in the country with the largest aircraft fleet, China Southern is confident and prepared to go through the stagnant period.

The growing oil price has made over 50 airlines over the world faced with bankruptcy. China Southern, headquartered in Guangzhou, which forecasts a nearly CNY 5 billion additional cost because of oil price rise this year, has applied to the central government for raising bunker surcharge to reduce cost pressure.

Besides, the company is active in hedging aviation oil and taking measures to save oil such as introducing oil-efficiency aircrafts and technically upgrading the current aircrafts.

The company, whose 96% liabilities are based on the US dollar, has been taking advantage of the appreciation of the Chinese yuan agaist the US dollar, making a large amount of proceeds thanks to the stronger Chinese yuan since 2007.

From dycj.ynet.com, Page 1, Thursday, June 26, 2008 info@SinoCast.Com