China Southern is quitting the SkyTeam alliance, in a move which robs the alliance of its largest Chinese partner and is sure to encourage rumours that the Guangzhou-based airline could join Oneworld.
A media statement issued by SkyTeam said "China Southern’s decision reflects its strategic development, the changing trends of the global aviation industry and the evolution of alliances."
"China Southern has decided not to renew its contract with SkyTeam, the global airline alliance, as of 1 January 2019," the alliance said.
"SkyTeam and China Southern have agreed to work closely together to ensure a seamless transition for all customers and partners. That process will run throughout 2019 and will complete by the year-end."
This process will include managing the impact of earning and using frequent flyer miles and airport lounge access.
China Southern said in a statement that it will seek partners outside of the alliance to build up a global network.
SkyTeam's remaining airlines in mainland China are Shanghai-based China Eastern and ther smaller Xiamen Airlines; the alliance also counts Taiwan's China Airlines as a member.
Beijing-based Air China belongs to the Star Alliance and has a stake in Cathay Pacific, a Oneworld member.
China Southern joined SkyTeam in 2007 and has direct flights to its Guangzhou hub from Sydney, Melbourne, Brisbane, Adelaide and Perth. In addition to bringing business travellers into the heart of China's Pearl River Delta manufacturing region, the airline also offers onwards connections across Europe and the UK.
In the past two years, China Southern has increasingly branched out to non-SkyTeam members for partnerships. In addition to the minority stake sold to American Air, it’s in talks to upgrade its code-share agreement with British Airways into a joint venture. Both BA and American are members of the Oneworld family.
Meanwhile, domestic rival China Eastern has been seeking closer ties with other SkyTeam members including Delta Air Lines and Air France/KLM through mutual stake investments, leaving China Southern in an awkward situation within the alliance.
Additional material by Bloomberg
David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
Qantas - Qantas Frequent Flyer
15 Aug 2017
Total posts 116
Can’t imagine CX will be too impressed if they do join OW.
QF
24 Jan 2016
Total posts 22
Not sure how Cathay are going to feel about a huge rival with their base so close to HKG joining OW? If CZ do join OW that may prompt CX to leave the alliance and join Star? Interesting times ahead in 2019, that's for sure.
Qantas - Qantas Frequent Flyer
16 Jan 2018
Total posts 129
I can picture this being a problem if they want to join another alliance as SQ/CA wouldn’t be happy, and CX would be in the same boat. MU and QF would have challenges with their alliance and partnership. It’s unlikely and we can just speculate. But time will tell.
30 Jul 2015
Total posts 104
Really? Join Star will ALL the other Asian carriers!!
30 Jul 2015
Total posts 104
CZ and CX could exist comfortably side by side...and also reap benefits if CX looks at it the right way. Will take CZ awhile to catch up to CX's service standards anyway.
Qantas - Qantas Frequent Flyer
04 Nov 2017
Total posts 351
CX would increasingly likely use their veto to block CZ's entry into Oneworld if any of the Oneworld carriers try to sponsor CZ's entry.
Qantas - Qantas Frequent Flyer
04 Jun 2015
Total posts 70
Interesting QF have partnerships with both CZ and MU. Hedging their bets perhaps
Qantas - Qantas Frequent Flyer
02 Jul 2011
Total posts 1374
Think just reflects connections from HKG and PVG, particularly given China's loose one airline per route policy.
29 Aug 2014
Total posts 22
Perhaps CX can be threatened with expulsion?
Qantas - Qantas Frequent Flyer
21 Jan 2017
Total posts 51
cx will just taken over by ca and everyone is happy.
Qantas - Qantas Frequent Flyer
03 Oct 2018
Total posts 6
CX is no longer a premium airlines, all they know is cutting cost and cutting cost... CZ exiting ST is a good thing as MU is increasingly making CZ uncomfortable. CZ can utilise this opportunity to better themselves. Yet it’s a government owned corp, thus no need to be too optimistic about it.
Cathay Pacific - The Marco Polo Club
11 Jun 2018
Total posts 25
Mind asking CX for further comment? Interested to see how they will response at this stage. With the rumor that QR is leaving ow, I really don’t want to lose another premium and flagship airline of OW.
China Airlines - Dynasty Flyer
22 Sep 2012
Total posts 73
Qantas - Qantas Frequent Flyer
22 Jul 2015
Total posts 219
Much speculation on CZ but I do hope that CX don't leave OW as travelling through HK and use of those CX lounges along with the QF lounge there is one of travelling life's pleasures.
Qantas - Qantas Frequent Flyer
18 May 2011
Total posts 233
They sounds like a prime candidate for OneWorld Connect if 'building their own network of partners' is what they want to do.
Air China - Phoenix Miles
20 Dec 2012
Total posts 105
Any chance CZ would merge with MU or CA?
01 Sep 2015
Total posts 17
@kk cn government says no...
British Airways - Executive Club
24 Jan 2012
Total posts 74
I feel that a breakaway from a group of allies created for economical benefit needs a catchy name. CZxit???
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