The Week in Focus: The growing pains of China Southern
Three years ago, China Southern Airlines outlined its vision to Tourism Australia chief executive Andrew McEvoy. That vision included operating to seven Australian ports and, by the end of the decade, carrying one million Chinese travellers to Australia.
“I thought that was amazing, but maybe too good to be true,” McEvoy now says. “But the airline has done or is doing everything they said they would. I quickly became a believer.”
China Southern this week announced the fifth of those seven ports with Cairns now featuring on its routemap with a seasonal, three times weekly service to operate via Brisbane from December.
Tan Wangeng, the airline’s amenable president and chief executive, who is highly regarded in the Chinese political hierarchy, flagged Adelaide as the 6th port but remained coy on the 7th. However, Canberra has appeared on powerpoint presentations in the past.
With around 40 weekly flights operating each week to Australia, and with plans to increase that to 55 by the end of 2015, China Southern is now moving to the next stage of its growth – partnerships.
During a press conference with Australian media in Guangzhou this week, Wangeng issued an open invitation to Qantas and Virgin Australia to come and talk to China Southern.
Such a partnership could work both ways. With such capacity growth, China Southern will be anxious to tap into Australia’s domestic network. Or as one industry observer told me: “They’re going to have to partner like crazy”.
For an Australian airline, an agreement will give it direct access into China, which, of course, is where the world and his wife wants to be.
China Southern is still heavily reliant on its own citizens, with foreign nationals making up only around a quarter of its passengers, meaning access to Australian regions beyond its gateway ports will be crucial.
With Qantas already involved with China Eastern, Virgin Australia would seem the most likely partner for China Southern, with Virgin chief executive John Borghetti said to be open to the idea. That, however, could tread on the toes of Virgin’s Asia partner, Singapore Airlines. It will be fascinating to see how airline partnerships evolve in Asia, with Qantas possibly shedding some light on that next week when it delivers its 2012 financial results.
But it’s not just airline partnerships that China Southern needs. As important, if not more so, is its relationship with the retail trade in Australia. Tan spoke of his “friendship” with Flight Centre management and he’ll need all the friends he can get if his plans to develop the Canton Route are to truly come off.
There is an argument to say China Southern has expanded too quickly. For while the number of flights has risen, the service quality remains questionable.
Cabin crew are eager to please and eager to learn and by all accounts the service has improved markedly over the past three years. But right now, the quality is not at the level required for an airline which is so keen to make its mark on the world stage. Flight attendants' English is adequate – although light years better than my non-existent Mandarin – but possibly frustrating for many passengers.
Yes, there is a price point that will entice some travellers to choose the Canton Route, but with strong competition both through Asia and the Middle East, grabbing a meaningful slice of that pie will be a tough challenge.
Business class product may also need to be stepped up, first and foremost the advent of fully lie-flat beds, which are now the norm in premium class cabins. Inflight entertainment should also be on the revamp list.
The positive is that management are well aware of the failings and only too anxious to admit it needs to learn. Executive vice president He Zonkai even thanked Australians for their letters of complaint as they provide insights into where it needs to improve.
The introduction of Australian cabin crew – 24 have been trained to far – will also go some way to bridging the gap between what is expected and what is currently offered by China Southern.
Irrespective of China Southern’s challenges and opportunities, such expansion and ambition can only bode well for Tourism Australia. With China Eastern also set for growth, Andrew McEvoy is well placed to deliver on his 2020 China promise.
Latest News
TTC’s hosting a masterclass series for Aussie agents unlocking the secrets of its five brands
TTC Tour Brands is hosting a Masterclass series this May and June to make it ‘easy-as’ for agents to unlock all the tips and tricks of selling across its five brands. Across weekly Wednesday sessions TTC Tour Brands is shining a spotlight on selling its brands and Groups. Each Masterclass will provide a 15–20-minute key insight session […]
Dorsett Melbourne appoints new director of sales Maggie Wong
This top female team at the Dorsett Melbourne aims to take the hotel to new heights - even the lucky eighth floor.
Western Sydney Tourism unveils fresh board ahead of ’26 airport opening
'Connect-Stay-Experience', that's the Western Sydney's tourism taskforce's motto. We sort of prefer 'West Is Best'!
From Olympians to mindset coaches, Helloworld’s OMC conference wraps in style
Say hello to a good time and make sure you're at 2025's edition!
Bunnik Tours welcomes KJ Phillips as the new BDM for QLD
We apologise in advance for winding Karen up as our State of Origin sledging begins to ramp up.
Drifter to usher in new age of affordable hybrid accommodation in Christchurch
Sort of like a hostel, but far, far ritzier!
Icebergs restaurateur Terzini joins Mangan at Sydney International Airport
Forget McDonald's or the sushi that's been there all day, dining at Sydney Airport just got a whole let better!
Sabi Sabi Earth Lodge: A beacon of luxury in the Kruger
If the lead image wasn't enough to convince you this is next-level luxury, take a peep inside.
Delegates ready for Africa’s travel showcase Travel Indaba at Durban ICC
How's it? We've requested a bag full of biltong on our reporter's return from this shindig.
APT’s world-first hydraulic-powered restaurant and bar ‘will be the envy of river cruises’
It may have been laughed off at first mention in the APT offices, but now it's here, APT are on top of the game!
Administrators appointed in wake of Air Vanuatu collapse – but there is hope
Another one bites the dust. We hope you sang to the tune when reading that!
South Australian beach crowned best ‘hidden gem’ in the country
Stoked baby! Or was that a typo?
Avalon Airport champions low-cost rail connection from Melbourne CBD
Avalon rail connection? Bring it on! In two years, say officials, but we say they've got Buckley's.
2024 Green Revolution Summit brings travel heavyweights into green fuel discussion
It's almost like the organisers read our article on sustainable fuel this week.
Wendy Wu Tours first China mega-famil for 100 travel agents will be full of Wow!
China travel guru Wendy Wu should have no trouble ordering 100 dumplings for key travel agents on her mega famil.
Oaks Hotels & Resorts gets behind Netball’s Suncorp Super League
So Netball Australia draws its moral line somewhere between Gina Rinehart and Oaks Hotels & Resorts.
Tourism Australia appoints new regional general manager United Kingdom
Expat Aussie Andrew Boxall steps off a Flight Centre gig to plant the flag as UK Tourism Australia GM.
Chef Alessandro Pavoni unveils Cibaria at Manly Pacific MGallery Collection
Only problem is you'll get stuck on the Spit Bridge on the way back, after you finish your meal.
Hotel Review: Atlantis The Royal – Stunning in every sense
You can look but you can't touch. At least that's what it feels like when reading an article on this masterpiece.
Flight Centre’s Big Red Sale starts today
Flight Centre taking inspiration from Qantas' Red tail sale yesterday, someone's gotta change for the next round.
Aurora Expeditions announces savings for solo travellers
Save your money and travel and go solo, just don't spend it all buying friends at the bar.
Etihad and Tourism officials launch free Abu Dhabi Stopover
Etihad's giving you free hotel stays on your stopover while Qantas pays fines for ripping people off.
New MSC Australia boss talks hot topics for local cruisers, including the Caribbean
New MSC Australia boss, Antonio Paradiso, spills the Caribbeans on where he expects Aussie cruisers will go next.
Contiki’s latest campaign inspires travellers to engage with the world around them
Hands off! Influencers invited on holiday and told not to post anything. We can assure you they're back at it now.
Aussies a hit on the conference floor for IPW 2024
Diana Ross on opening night, Keanu's Dogstar band and a dozen lobster rolls. All in a week's work at IPW 2024.
Disney excited about prospects of cruise business as Disney Treasure nears completion
Disney's booming cruising business is set to knock Disneyland experiences out of the park.
Scoot’s first E190-E2 flights take off between Krabi and Hat Yai
When flying's a pitch. Airline lite Scoot offers a standard seat pitch of 29” on its new 112-seater.
Premium hotel operator ERDI launches it’s own academy in heart of Melbourne
ERDI expects to be shaken not stirred with the launch of its ERDI Academy in its Melbourne hotels.
Tropical North Queensland action-packed events calendar for adventure enthusiasts
Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]
Singapore Airlines Group first to receive SAF from Neste as AU/NZ play catchup
Singapore leaving many in their green dust. Here in Australia, we're hoping for a tortoise and the hare type outcome
Qantas Red Tail sale discounts more than 200,000 fares
Qantas marketers forever thankful to the team who chose the red and white colours. How else would they name a sale!
Bannisters by the Sea unveils retreat style package for new mothers
Three hours in the car with a newborn from Sydney might be tough, but trust us, it'll be worth it when you arrive.
Nothing Bonza can do to prevent loss of planes, ACCC concerned by latest aviation developments
Going, going, gone. It seems...
APT offers destination incentives to enjoy the Best of Asia
Whether its a cocktail by the beach or a hike through the mountains, APT has you covered. You'll find us at the beach!
Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland
Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]
Get ready to roll the marketing dice with Susan Coghill: Travel DAZE EXEC 2024
It's heating up in Cairns and we're not talking about the weather! Get ready for a marketing masterclass with Susan.