China Southern Airlines Joint Venture Inks Engine Pact with IAE

18th Jun 2002

GUANGZHOU, China - June 18, 2002 ¬C MTU Zhuhai - a joint venture with China Southern Airlines (NYSE: ZNH) (HKSE: 1055), the largest airline in The People`s Republic of China, has today inked an agreement with IAE International Aero Engines for the Repair, Modification and Testing of IAE V2500 Propulsion Systems, Engines and Modules in China.

MTU Zhuhai,, is a 50/50 joint venture between MTU Aero Engines of Germany and China Southern Airlines and will begin maintenance and repair work on V2500 aircraft engines when its new repair & overhaul shop opens in late 2002.

In attendance at the signing ceremony in Guangzhou were Mr. Wang Changshun, President of China Southern Airlines; Mr. Li Fenghua, Executive Vice President of China Southern Airlines and Chairman of MTU Maintenance Zhuhai; Mr. Steve Heath, President and CEO of IAE and Mr. Walter Strakosch, President and CEO of MTU Maintenance Zhuhai.

“As China`s largest airline, we welcome IAE`s and MTU`s initiatives to improve customer support of our V2500 engines,” said Mr. Li, adding that instead of sending the V2500 engines to MTU`s facility in Germany Á? they instead will be maintained in China. “This will not only significantly reduce turn around times in repair facilities but will support China Southern Airlines` environmental green program by eliminating transporting these engines to Europe,” said Mr. Li.

IAE International Aero Engines,, is a multinational aero engine consortium whose shareholders comprise Pratt & Whitney, Rolls-Royce, the Japanese Aero Engines Corporation and MTU Aero Engines. More than 750 V2500-powered aircraft have been delivered and the worldwide fleet has accumulated over 20 million flying hours.


The largest airline in The People`s Republic of China for the past 23 years, China Southern Airlines,, connects more than 80 cities around the globe. Major business and vacation destinations served in China include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan and as well as International service, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Osaka, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.



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