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China Southern Airlines Company Limited (i.e.,
the Company) together with its subsidiaries (collectively, the
Group) is the largest airline in The People`s Republic of China
(i.e., China or the PRC). Throughout 2002, the Group continues to rank first among all Chinese airlines in terms of volume of passenger traffic, number of scheduled flights per week, number of hours flown, number of routes and size of aircraft fleet. As of mid-June 2002, the Group operated 323 routes, of which 263 were domestic, 39 were International and 21 were Hong Kong routes. The Group operates the most extensive domestic route network of all Chinese airlines. In addition, the Group operates an average of 2,907 scheduled flights per week serving 87 destinations, including 65 cities in China, including Changsha, Chengdu, Beijing, Guangzhou, Shanghai, Shenzhen, Tianjin, Wuhan, Xiamen, X'ian and Zhengzhou. China Southern Airlines also offers service to key International destinations, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Osaka, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo. Most of the cities served by the Group are located in commercial centres or rapidly developing economic regions in China. Worldwide headquarters are located in Guangzhou, one of the gateway cities of China. Located in the rapidly developing Pearl River Delta region, Guangzhou is the #1 transportation hub of Southern China. In addition to its main route base in Guangzhou, the Group maintains 10 regional route bases in Changsha, Guilin, Guiyang, Haikou, Shantou, Shenzhen, Wuhan, Xiamen, Zhengzhou and Zhuhai. The majority of China Southern Airlines' regional bases are located in provincial capitals or major commercial centers within the PRC. The Group operates a portion of its air transportation business through its subsidiaries, namely Xiamen Airlines Company Limited (Xiamen Airlines); Southern Airlines Group Shantou Airlines Company Limited; Guangxi Airlines Company Limited; Zhuhai Airlines Company Limited and Guizhou Airlines Company Limited (collectively also known as Airline Subsidiaries). Each of the Airline Subsidiaries is 60%-owned by the Company. As of mid-June 2002, the Group operated a fleet of 110 aircraft, consisting of 92 Boeing aircraft, including: 737-200, 737- 300, 737-500, 737-700, 737-800, 747-400, 757-200 and 777-200 ... as well as 19 Airbus A320-200 aircraft. Most of the aircraft were held under finance and operating leases. The average age of the Group's fleet (by year-end 2001) was 6.5 years.
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