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CZ-exit: China Southern Airlines’ Decision On Joining OneWorld Alliance

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Intro: CZ-exit Confirmed(90%)

China Southern Fleet Livery

Ten years ago was a great day! In 2007,China Southern Airlines(CZ) was the very first mainland Chinese carrier to join Skyteam alliance. Marking on its title of being the only mainland carrier to operate A380s together with its extensive network in Asia, its ‘’marriage’’ into the Skyteam family surely was honey-sweet at first, but competitors befalls overnight just like storms gather without warning in nature after China Eastern Airlines’(MU) decision of also joining the Skyteam alliance in June 2011 together with its acquired subsidiary Shanghai Airlines(FM) which both are based in Shanghai – the most geographically advantageous aviation market in the greater China region. In an attempt to further strengthen its position as the biggest airline in Asia, its own subsidiary – Xiamen Air(MF) also joined Skyteam Alliance November the same year, making Skyteam the alliance that covers the most destinations with unprecedented frequencies through its hubs in Shanghai(SHA and PVG), Guangzhou(CAN) and Xiamen(XMN). We all agree that China has great potential but the network overlap rate is competitively high for any airline to benefit from it not to mention the deficiency between member airlines.

Besides competition with regional markets in Asia against China Eastern, Shanghai and China Airlines(CI); its desire on feeding connecting passengers to other Skyteam members’ base airports was also not satisfied; as China Eastern smooth up relationships with Air France-KLM (AF) and Delta Air Lines-Virgin Atlantic (DL) by completing a series of share transactions. Targeting China Eastern as the main connecting airline between the China-Europe and China-North America market, this resulted China Southern being further out of the loop in the Skyteam family.

A recent article published by the South China Morning Post has triggered a wider uproar within the industry, the story was widely reported by various news outlets and an employee survey on leaving the alliance circulated on the internet has ensured the rumour with higher credibility. The industry predicts that such decision was led by American Airlines’(AA) $200 million investment in China Southern in 2015.

The China Eastern on Top?

In recent years, China Southern has been feeling the potential harm can be done by continue to compete with China Eastern with similar expansion strategy. In light of the newly opened Disney Resort in Shanghai, China Eastern is bound to be more popular within the Skyteam family; in addition, the plan for all non-star alliance airlines to move to the new Beijing Daxing airport from the current Beijing International Airport would also have resulted into China Eastern and China Southern facing direct competition for flights there. China Southern wouldn’t really be getting lots of advantages if they maintain the status quo.

China Eastern,Delta and Air France-KLM buys stake on each other

In the meanwhile, China Eastern is heating up with partnerships and cooperations, judging by its initial stance for being the last out of the ‘big 3’ in China, with its relatively small and less developed fleet and route network, it’s fair to say prospects are surprisingly good for China Eastern.

The Holy Trinity in Beijing?

The new airport in Daxing, Beijing is projected to become the world’s biggest airport in terms of annual pax number. With Air China(CA) and Hainan Airlines(HU) stay based on current Beijing International Airport(PEK) and China Eastern and China Southern along with several low cost carriers to become hub operators at the new Beijing Daxing Airport(n/a). If China Southern decides to join Oneworld, the commercial aviation market in Beijing will be interestingly not only a holy trinity of the big 3 in China, but also the holy trinity of the major airline alliances. The possibilities for frequent travellers would be amazingly fascinating.

Beijing Daxing Airport Terminal Layout

Pret-á-Poor-Cathay

The biggest victim for China Southern’s decision to leave Skyteam and join Oneworld would be the flagship carrier of Hong Kong – Cathay Pacific (CX) together with Cathay Dragon(KA) would be face stiff competition within the same alliance with its crazy approximation to Guangzhou Baiyun Airport – 121KM.

Cathay Pacific and Cathay Dragon

Based on the story on China Southern leave Skyteam to join Oneworld, another story developed that Cathay Pacific will leave Oneworld and join Star Alliance, the ramifications of such behaviour would be of great complexity, although it make sense as Air China was the second biggest stakeholder of Cathay Pacific, however, Qatar Airways’ recent purchase of 9.6% stake in Cathay Pacific would make such decision unreasonable, not to mention another China Southern – China Eastern situation could occur within the new Star Alliance between Cathay Pacific and Singapore Airlines, as they are both Skytrax 5 star airline based in a city state who are fighting for connecting passengers from other countries.

Qatar Airways A380

The possibility for Cathay to change to Star Alliance seems unlikely, but will a dual-hub Oneworld market is southern China truly benefit either of them, especially seeing from the already troubled failure in bringing in revenue in Cathay’s side. So no pun intended, if Pret-á-Porter means ready to wear, for Cathay, you can prepare to be ‘poor’.

FFP: Narrow Path to The Pointy End

Many people are fascinating about the new possibilities for different alliances’ miles redemption if such changes were put into place, however, I would like to point out the unavoidable industry trend for airlines to devaluating miles redemption rate despite which airline alliance they are part of.

China Southern First Class Product

So if you are thinking of sipping champagne in first class with China Southern miles, it will be a narrow path for everyone, my friend.


Thank you for reading this analysis, please leave a comment to share your thoughts.

If you want, follow me on instagram and talk with me there 🙂

China Southern A380

Albert K. Field Albert is my name, and travel the world is my game. I began my passion for travel at a very young age, I started this website as a strong means to further explore the world of frequent flyers programs (FFP). The relationship between customers and service providers in the aviation and hospitality industry always seems to be in opposition, however, since the introduction of United Airlines’ Frequent Flyers Programm since 1972*. This has significantly eased the middle spectrum between 2 parties. While the aim of airlines is still to generate more revenue; but for us,as consumers, are also given the opportunity to participate in the bargaining and exploiting from service providers. Living in a world of globalization where big data becomes vital for simulating successful economical activities, most of us will have to travel to other locations whether willingly or unwillingly, while you hearing all this fascinating stories about others, In fact, you too, can blend into the trend. It may not sound like how media illustrates, but indeed there are possibilities for us to have more spontaneous travel without getting held back by financial situation. My website consists of reviews of airline premium cabin products,airport lounges and stay reports of 5-star hotels and their executive lounges across the globe. In addition to all of that, I care the most about their frequent flyers program and loyalty program, which also includes banking partners. Plus, I spontaneously put up reviews and news update regarding premium water brands and restaurants. The purpose of this website is to share all of this information with my audience as well as inviting you to be part of my journey.

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Airline Reviews

Flight Review: LOT Polish Airlines B737-800 Business Class Warsaw to Frankfurt

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LOT Polish Airlines B737-800 Livery

Nowadays, Intra-European business class is a product that existing for the sole purpose of just existing, it helps legacy carriers to stand apart from other low-cost ones. While having practically the same cramped seats as economy, airlines are able to adopt it to maximise potential on their premium-offering network.

LOT Polish Airlines Business Class Check-In Area

LOT Polish Airlines Business Class Check-In Area

In addition to the already sub-par hard product, on short-haul flights like this, it’s even harder for you to be treated with a soft product that’s of redeemable qualities. Though, LOT Polish Airlines here has managed to offer something quiet decent compared to its European counterparts.IMG_9386 2


Practical Info

LOT Polish Airlines Premium Area Sign

LOT Polish Airlines Star Alliance Gold Sign

  • LO 379
  • Warsaw(WAW) – Frankfurt(FRA)
  • Boeing 737-800
  • Business Class Seat 1F
  • Award Booking

Check In

LOT Polish Airlines Premium Check In Area Overview

Premium Check In Area Overview

Warsaw Chopin Airport’s terminals are still quiet new and modern since its opening, and as the hub operator, LOT Polish Airlines offers an exclusive premium check-in area for Star Alliance elites and business passengers.

LOT Polish Airlines Business Class Check-In Area Inside

Business Class Check-In Area Inside

The agent handled me was well-informed and explained everything I needed to know about my journey. Although there were two younger staff who were guarding the entry ignored me completely and were busy chit-chatting to each other, but that’s alright, they are just enjoying themselves by not working on the customer front.


Fast Track Security

Warsaw Airport LOT Star Alliance Fast Track Security

Fast Track Security

The fast track security is also conveniently located right behind the premium check-in area, after scanning your ticket, you are able to go through security point quiet easily, although it can be some queueing here as well.


Boarding

LOT Polish Airlines Business Lounge Entrance

Business Lounge Entrance

You may access LOT Polish Airlines lounge at the second floor of the departing level, which can be entered with your Star Alliance elite memberships in addition to holding a premium ticket.

LOT Polish Airlines Business Lounge Polonez Sign

Business Lounge Polonez Sign

The boarding gate is right under the lounge, so there were not that much walking for me for this entire journey. However, I did not see a priority boarding line, after presenting my ticket, I was allowed to skip the queue and board immediately.

LOT Polish Airlines Boarding Gate View

Boarding Gate View

To my surprise, I was only priority-boarding to a shuttle bus, not the aircraft.

LOT Polish Airlines B738 On Stand

LOT Polish Airlines B738 On Stand

So after waiting for half of the plane to get on the shuttle bus, I was finally on board the aircraft, though not the first few passengers, ironically.


Seating

My seat 1F was on the first row with extended leg room, though the tray table would be under the armrest instead. Nothing to complain about the design, but the seat is anything far from being enjoyable.

LOT Polish Airlines B738 Business Class Cabin Layout

Business Class Cabin Layout

The business class cabin is just normal economy seats with red head covers. While LOT Polish Airlines also creatively offers premium economy seating with just a blue head cover instead.

Other than this, they don’t get meal service either, not sure if there’s actually a market for such division. This is more of comfort seating on other airlines that comes with a higher seat selection fee; but I am letting you on a secret here, a well-known social code actually, Star Alliance gold members often get to sit in premium economy for free during airport check-ins.

The cabin design is simple and bright, though not worthy of getting any compliments. Hehe


Inflight Meal

LOT Polish Airlines Short-haul Business Class Wet Tissue

Wet Tissue

Once boarded, I was offered a packaged wet tissue instead of a hot towel, but that’s alright.

Before taking off, the flight attendant kindly offered me newspaper to pick and a departure drink.

LOT Polish Airlines B738 Business Class Sparkling Water

Sparkling Water

Shortly after air-born, the lady first asked me if I wanted some snacks, and I was given some peanuts and dry carrot slices, the exact same packages you get from their lounge.

LOT Polish Airlines Short-haul Business Class Snacks Before Meal Service

Snacks Before Meal Service

I am not sure but I do think you can also choose something from their menu onboard, which economy passengers have to pay for.

I was the first one to be offered meal service, unfortunately I found out that my seat’s foldable table is unstable and the tray plate would slide away as the plane moves.

LOT Polish Airlines B738 Business Class Tilted Seat Table

Tilted Seat Table

Luckily no one was sitting next to me, so I was able to enjoy my meal from that seat.

LOT Polish Airlines Short-haul Business Class Food Service

Short-haul Business Class Food Service

The meal service was cold plate offerings with heated bread choices, everything tasted alright to my surprise, the fruit was fresh and the salmon was slimy and refreshing.

LOT Polish Airlines Short-Haul Business Class Menu & Beverages

Business Class Menu & Beverages

After the main course, you get coffee and Lindt chocolate as dessert, though not too much quality to speak of about the offering itself, but the flight attend was extremely kind and attentive.


Other Amenities

The toilet is not exclusive to business cabin only, but since most passengers choose to use the one in the back of the plane anyway, the toilet was clean and well maintained throughout the flight.

LOT Polish Airlines B738 Toilet Sink

Toilet Sink

Other than the tilted table on my seat, the flight has been very enjoyable.

LOT Polish Airlines B738 Business Class First Row Seat Table (Unstable)

First Row Seat Table (Unstable)


Up In The Air

LOT Polish Airlines Business Class Taxiing View

LOT Polish Airlines Business Class Taxiing View

LOT Polish Airlines B738 Business Class Window View Mid-Air

Window View Mid-Air

LOT Polish Airlines Window View

Window View

Shortly after zoning out into the clouds outside my windows, it was time to land.

LOT Polish Airlines B738 Business Class Candy Before Landing

Candy Before Landing

The female attendant quickly come around with a small basket of candy, and I gladly grabbed one with a sense of enjoyment.

Conclusion

This LOT Polish Airlines flight has been short and sweet, there are not many things airlines can experimenting with these days, so the soft product of service is vital for a good flight experience; but I think the crew on this flight have done a wonderful job.

LOT Polish Airlines B738 Approaching Frankfurt City

Approaching Frankfurt City

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Airline Reviews

Hainan Airlines To Fly Oslo – First Step Forward

Norway is the largest western European country without a flight to China, and is the smallest of western European countries with flights to Asia. Its only destination is Bangkok.

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Hainan Airlines To Fly Oslo – First Step Forward

Norway is the largest western European country without a flight to China, and is the smallest of western European countries with flights to Asia. Its only destination is Bangkok. Flights to Bangkok are operated by both Star Alliance member Thai Airways and European Ultra Low Cost Carrier Norwegian.

The local (Multi-)national carrier SAS had previously operated flights to Bangkok out of Copenhagen but decided to drop service altogether to shift focus on the US long haul market only.

Norway is a wealthy outward tourism country, perhaps the wealthiest out of all of Europe. Its national industries desires great air cargo transportation capability on exporting those world renowned seafood(salmon) and abundant natural resources (oil). Besides the strong outbound travel population, the country’s natural sceneries(fjords, northern light) can sufficiently attract all year round tourism as well not to mention its extreme and winter sports industries.

If any airline want to capture growth and gain market share nowadays, China can never be ignored. Due to sensitive issues like the Nobel Prize dissident before, relationship between Norway and China didn’t become normalised until earlier this year.

Comparing with Norway’s nordic neighbours: Finnair had launched direct flights to 6 cities(Beijing, Shanghai, Guangzhou, Chongqing, Xi’an, Nanjing) in mainland China and it’s still expanding; Both Stockholm and Copenhagen has direct flights to China(including Hong Kong) operated by SAS, Air China and Capital Air (Subsidiary of Hainan Airlines); even small Iceland had experienced spikes of Chinese tourists.

SAS had always favoured Stockholm and Copenhagen over Oslo when comes to long haul network expansion, perhaps due to the relatively higher costs of operation in Norway, but Norway is not a market that can be fully absorbed or replaced with alternatives, the need for Norway to secure direct flights to China not only lies in the national interests but also the “peer” pressure lies upon competition with its Scandinavian counterparts.

Home Growth With Home Carriers?

With likely the highest operating costs in the world, SAS today has become somewhat of a boutique airline where it can no longer using its hubs to filling more seats with connecting passengers, and possibility for it to grow it’s relatively low and their main business objective has shift to maximise efficiency on its already established route networks. Possibility for SAS to operate one extra route from Oslo to China is highly unlikely after its launch of the route from Stockholm to Hong Kong to complement its flights to Asia(Beijing, Shanghai, Tokyo) out of Copenhagen.

Other than SAS, Norway has another national carrier(sort of) that has been causing great disturbance all over the airline industry throughout it’s existence. Famously said by its CEO Bjørn Kjos:“go big or go home” during a TV interview on CNN, Norwegian has always considered China as its growth engine. As the so-called world’s next great budget airline, the problem for Norwegian flying from Oslo to China it’s not whether but rather when.

After numerous attempts by Norwegian to break the “outdated” and somewhat “discriminating” 1956 agreement between Scandinavia and Soviet Union which make SAS the only carrier can fly the Siberian Corridor to Asia. Lastest round of negotiation just happened in 9th November this year in Oslo has been confirmed to be unfortunately failed, Norwegian had planned to actually start flights from Tromso to Beijing, Shanghai and Tokyo and as well as flights from Stockholm, Denmark to other destinations in China, India and Thailand etc. to provide more passengers access to Norway’s winter tourism destination.

However, none of those will be realised in the short run unless Norwegian can gain access to fly the Siberian Corridor. It’s possible for Oslo to get flights in the long run to China which can be operated by one of their two home carriers, as for the midterm goal to allow more Asian tourism population reach Norway is depending on Chinese carriers.

Speaking of the “Angle” – Hainan Airlines To Fly Oslo

45 out of a total of 98 airports in Norway is operated by the government owned Avinor company, Oslo Gardemoen is the biggest airport in Norway which function as the gateway to the rest of Norway, in addition, the city of Oslo itself has a strong corporate and leisure traveler base both outbound and inbound. As of earlier this year, the new management team at Oslo has been expressing its eagerness to regain more initiative in Asia.Previous industry reports has been suggesting that Hainan Airlines would be a suitable candidate carrier, this has been confirmed by their application sent to CAAC a week ago which states the following routes:

From April 2018, Beijing – Oslo return, A330/B787, 3 times weekly,

From May 2018, Shenzhen – Oslo return, A330/B787, twice weekly.

Other than Beijing, Shenzhen is an interesting route in China to launch inter-continental flights with, and this also leads to the uniqueness of Hainan Airlines.

Hainan Airlines is not traditionally a national carrier of China, its hub airports are on the island of Hainan. As of today, it officially call Beijing its base airport which they have been launching numerous long haul fights to compete for market share with the big 3 – Air China, China Eastern and China Southern. In many ways, China has a special rule of only allowing one domestic carrier to operate one city pair of international long haul flights, this means that Hainan can not operate traditional tier one city pair for example Beijing – Los Angeles or Shanghai – Amsterdam, instead, many never-before-heard routes has been launched like Changsha – Los Angeles, Beijing – Prague or Shanghai – Seattle. Its city pair would choose to operate from one tier one airport like New York or Beijing to a second tier airport like Changsha or Prague.

Shenzhen Airport Terminal

For the situation with Shenzhen, it’s interestingly more strategic for Hainan to do so. Shenzhen, the city itself like many other Chinese mega cites, it’s unheard of by many people. Utilised on its unique approximation to Hong Kong, it has now gained the title of the Silicon Valley of China, and the city’s dozen millions population all comes from the rural area 20 years ago. It today has the 6th biggest commercial aviation market in China, and its long haul network hasn’t been officially authorised by officials until a few years back, thus the current hub carrier of Shenzhen – Shenzhen Airlines – A star alliance member(Subsidiary of Air China) is facing the situation with no wide body planes to fly in the short term, so airlines like Hainan is gaming on the unique situation to take over as many routes as possible, even means that they are serving it with relatively low frequencies. So rather than Shanghai or Guangzhou, the city pair of Shenzhen – Oslo wouldn’t seems to be so strange after all.

Operating unconventional routes is not the only special characteristic feature of Hainan. It’s holding company – HNA group has also been doing uncommon market practices with its high-profile mergers and acquisitions. As of today, the HNA group owns major hotel chains like Carlson Hotels groups, it has 25% stockholding in Hilton hotel groups and owns 100% of Swissport and Gate Gourmet and many more.

For many of us frequent travellers, Hainan airlines currently has their own FFP(frequent flyer programmes) called fortune wings club, although they don’t belong to any airline alliances, their partnership with Alaska Airlines can be a highly valuable option as you can register miles through Alaska’s MVP program which allows amazing redemption opportunities to first class products on airlines like Emirates and Cathay Pacific.

First Step Forward

China has enormous opportunities in the future for any airline who want to adapt and grow, and for the Norwegian commercial aviation market to sufficiently nurture and expand not only for its carriers but also for one of the most advanced aviation markets in the world to continue to integrate, Hainan Airlines route application is just the beginning of a new chapter, with hope that the CAAC will grant their permission to start fly those routes shortly. I just want to say that first step is always the hardest, one step forward but fingers crossed not two steps back.

Norwegian Air Fleet


I would like to hear your thoughts on the situation and the possible players you want to see in the field. Leave a comment below or maybe share it with your friends on social media.

Stay tuned.

 

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