China Southern Airlines Group Company, the parent organization of China Southern Airlines (NYSE: ZNH) (HKSE: 1055), the largest airline in The People`s Republic of China is pleased to announce that it will take operational and managerial control of Zhongyuan Airlines.

The merger, which has been under discussions for several weeks, has been approved by the Civil Aviation Administration of China (CAAC) and the government of Henan Province. It also marks the first airline merger since the CAAC, last week, announced the creation of three large airline groups in China.

“This merger between Zhongyuan Airlines and Southern Airlines Group is a good deal for the passengers of north central China,” said Mr. Yan Zhi Qing, President of Southern Airlines (Group) Company.

For more than a decade of operations, China Zhongyuan Airlines has total assets of £1.46B RMB, operates five Boeing 737s and two Y-7s and has more than 560 employees including 80 pilots.

Zhongyuan Airlines will keep on its operating name but will be part of the overall Southern Airlines Group. After the merger, the combined Group will command 60% of the transportation market at Zhengzhou Airport.

“Zhongyuan Airlines merging into Southern Airlines Group will directly benefit Henan Province`s civil aviation and as well as the development and economics in and around Henan,“said Mr. Shi Fa Liang, Director General, Transportation Department, Henan Province.

Zhengzhou Airport currently handles flights from 40 destinations throughout China and more than 23,000 flights annually, in which both Southern Airlines Group and Zhongyuan Airlines own around 30% of the market share.

With headquarters located at Baiyun International Airport, Guangzhou, China Southern Airlines operates a modern fleet of more than 100 state-of-the-art aircraft, including nine Boeing 777.

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