ON Nov. 25, 1991, the roaring engines of a China Southern Airlines flight heralded the start of commercial aviation in Shenzhen. In 19 years, the company had expanded from two routes in the beginning to a network covering more than 60 cities. It pioneered services by opening China’s first e-tickets and online check-in, opened China’s first ticket booking hotline 95539 and companion services for the elderly and children. It was also the first airlines in China to adopt an electronic tracing system for cargo. China Southern Airlines has become a household name.

    One market, two locations

    Rivals had taken a share of the Shenzhen market when Li Yunxiang was appointed general manager of China Southern Airlines in Shenzhen. The company had only one-third of the market and was facing a risk of losing more.

    China Southern Airlines had agreed to build hubs in Beijing and Guangzhou to service the northern and southern regions.

    But there was no strategy. In these circumstances, Li decided on a strategy of “one market, two locations,” which was approved by group executives.

    Based on this strategy, the group adjusted routes and flight details in Shenzhen and Guangzhou and formed a competitive and cooperative strategic structure for the two cities.

    In 2007, the Shenzhen company implemented its new managerial rule, optimizing resources by integrating the work flow to combat the challenge of increasing fuel prices.

    In 2008, the Shenzhen company tightened internal management, controlled costs and encouraged energy reduction to maximize profits to combat the sustained impact of the global financial crisis on the aviation industry.

    In 2008, the Shenzhen company introduced four Air Bus 330 aircraft. It expanded routes to Wuxi, Tianjin, Erdos, Taiyuan, Hohhot, Libo, Luoyang, Lianyugang, Taipei, Haila’er, Yongzhou and Zhoushan.

    Passenger and cargo turnover both increased by 20 percent, compared with 2006.

    China Southern Airlines signed a framework agreement with Shenzhen Government in 2009 to double the number of flights to 50 in five years. It will open international flights from Shenzhen and intensify flights to Taiwan. In 2010, it purchased five A321 planes for the Shenzhen market and planned another three in 2011.

    Improved service

    As a veteran in aviation, the Shenzhen company realized it could take a strong position by constantly improving service.

    From 24-hour bookings to free ticket deliveries, from the first e-ticket to online check-in, from service for the elderly and unaccompanied child passengers to an intensive shuttle bus service, the company has endeavored to improve services.

    At a work meeting for the year 2010, Li proposed a new strategic concept: building an outstanding enterprise in five years.

    The high-end market developed quickly since China Southern Airlines initiated a high-end economy class for passengers. The specially designated check-in counters, boarding priority, luggage handling, VIP-standard dining and accommodation in case of delays and cancellation of flights made passengers feel important. Passenger space in high-end economy class is 40 percent larger than economy class.

    The occupancy rates for VIP class and economy class on flights from Shenzhen was 50.65 percent on average by November this year, maintaining No.1 in Shenzhen market.

    Successful marketing

    The Shenzhen company faced an unprecedented challenge in the second half of 2010 after Air China took over Shenzhen Airlines and controlled 42.3 percent of the market share. The increased presence of China Eastern Airlines and Hainan Airlines also nibbled at the market. Yet the Shenzhen company made an encouraging achievement by reducing the negative impact to a minimum.

    In the first half of the year, the Shenzhen aviation market had experienced sustained momentum where traditional off-peak months such as March, April, May and June had seen a surge in travel.

    For the first time its history, the company had made a profit in June.

    In summer, the aviation industry entered the high season and the company added flights to busy destinations such as Guangzhou for Asian Games and Shanghai for the World Expo. It put on two new flights to Shanghai and Hangzhou.

    Healthy cargo business

    The cargo aviation market had a busy year in 2008 because of natural disasters such as snow storms and floods in January and June, and an earthquake in Sichuan in May. Yet, in 2009, the business was almost crippled because of the financial crisis, especially in Shenzhen, where the economy relies heavily on exports.

    The leading air cargo carrier in Shenzhen, China Southern Airlines advocates a reasonable and healthy market.

    The Shenzhen company joined an alliance with Guangzhou and Zhuhai by intensifying cargo flights and expanding the pool of cargo agents. Cargo turnover increased by 13.29 percent in 2010 compared with the previous year.

    More cargo routes were opened for western Asia via Urumqi, Amsterdam, Dubai and Lagos, Seoul via Beijing and Ho Chi Minh City via Wuhan and European countries via Shanghai.

    Social responsibility

    In 2005, China Southern Airlines registered a charity by deducting 0.1 yuan from the sale of each ticket and about 5 million yuan from the fund each year goes to help college students in poverty. About 3,000 students in Beijing, Qinghua and Zhongshan universities had received subsidies to allow them to finish college.

    In January and February 2008, prolonged icy weather affected most provinces in South China. The Shenzhen company set up two task forces to transport 6,000 passengers who had been stranded at Huanghua International Airport for 10 days.

    For the Wenchuan Earthquake in May 2008, the Shenzhen company raised about 1 million yuan in a week and China Southern Airlines spent 5 million yuan to help build primary schools.

    The earthquake in Yushu, Gansu Province, and drought in Yunan once again brought the Shenzhen company to the fore transporting disaster relief supplies, medicine and personnel.

    China Southern Airlines’ involvement in social activities and sharing social responsibility was widely recognized.

    It was 37th on a charity list for Hurun in 2006. It won an award for an excellent enterprise in 2007 for social involvement.

    (Translated by Han Ximin and contributed by Sun Haiying, Duan Huajian and Chen Daiwei)