Xiamen Airlines to join SkyTeam

The aviation sector in the China International Fair for Investment and Trade in Xiamen in 2010. Xiamen Airlines is planning to join the Amsterdam-based global airlines alliance SkyTeam. Provided to China Daily

XIAMEN, Fujian - Xiamen Airlines, a subsidiary of China Southern Airlines Co Ltd, is planning to join the Amsterdam-based global airlines alliance SkyTeam, according to a company manager.

Zhao Dong, Xiamen's deputy general manager, said the move indicates the airline's determination to gain a greater international presence in the coming years.

"Joining SkyTeam is part of our efforts to further advance international ambitions. Membership will help us transform from a regional airline into a global player," said Zhao.

The airline's application was approved at a SkyTeam council meeting held in Singapore in June, according to company sources.

"If the procedures are well advanced, we will become an official member of SkyTeam later this year," Zhao said during the China International Fair for Investment and Trade being held in Xiamen.

Skyteam offers frequent-flier discounts and other services to passengers of its 14 members. The alliance owes its presence in China to the 21 percent market share of its only domestic member, Guangzhou-based China Southern Airlines' membership.

Joining SkyTeam will help generate expected annual revenue of 30 billion yuan ($4 billion) in the coming five years ahead for Xiamen.

The airline reported revenue of 6.6 billion yuan in the first half of this year, an increase of 23.8 percent year-on-year, company sources said.

"We will launch more cooperation and share more flights with other airlines after becoming a member of SkyTeam," Zhao said.

Based in Xiamen, a coastal city of East China's Fujian province, the airline operates most flights departing from Xiamen, Fuzhou, Quanzhou and Wuyishan.

"We are determined to develop Fuzhou and Xiamen into leading transportation hubs in Southeast Asia," Zhao said.

At present, the operation of international flights contributes only 10 percent of the company's revenue, Zhao said.

Boosting its international presence in the years ahead is part of a strategy aimed at meeting the increasing demand that is a result of the regional economic development, Zhao said.

"We will add more flights from Xiamen and Fuzhou airports to provide tailored services for international passengers due to the establishment of the West Coast Economic Zone," he said.

The economic zone, including the coastal cities of Xiamen, Zhangzhou, Quanzhou and Fuzhou along Fujian province, is meant to help accelerate the integration of its economy, transportation system and infrastructure with Taiwan, which lies across the Straits.

"Joining the SkyTeam will also mean we may suffer some losses due to global economic fluctuations. But we have measures planned to avoid such a loss," Zhao said, who declined to provide more details.

In another development, Xiamen Airlines has entered into an agreement with Boeing Co to purchase six of the US company's B787 aircraft, Zhao said.

The planes will be delivered in stages in the late 12th Five-Year plan period (2011-2015) and will be used to launch services to Europe and the US from Xiamen and Fuzhou, the capital city of Fujian province.

Xiamen Airlines currently operates a fleet of 78 aircraft flying 119 domestic and 20 international routes. The airline provides around 3200 flights each week,- according to company sources.