China Southern Airlines to Put Off Freight Plan in Vietnam

GUANGZHOU, Jun 24, 2008 (SinoCast via COMTEX) -- ZNH | Quote | Chart | News | PowerRating -- China Southern Airlines Company Limited (SHSE: 600029; SEHK: 1055; NYSE: ZNH), one of the largest air carriers in the country, will postpone the launch of cargo flights from Vietnam to Europe and US, revealed Wang Weixiong, general manager of the company's office in Ho Chi Minh City.

The exchange rate is the major reason to force the company to defer the freight business in Vietnam.

China Southern, which maintains a relatively higher share in the passenger transportation market in the Southeast Asian country, reports a 10% annual growth in recent years.

However, the lower exchange of the Vietnam dong against the US dollar and continuous dropping exchange of the US dollar against the Chinese yuan stroke the Guangzhou-headquartered airline, which keeps accounts in renminbi.

The higher aviation oil price in Vietnam, CNY 2,000-CNY 3,000 per ton than Guangzhou, and inflation, which makes wages less valuable, are also the reasons to lash the airline's confidence to open freight operation in the country.

From dycj.ynet.com, Page 1, Monday, June 23, 2008 info@SinoCast.Com

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