China Southern Airlines has joined with Et-china to form the new China Southern Et-china.com E-business Company Ltd.
Et-China will contribute RMB 5.88 Million for a 49% stake in the joint venture. It will be jointly managed by executives from both Et-China and China Southern Airlines under a separate board of directors.
The new joint venture will benefit from substantial International expertise and technology, reducing unnecessary research expenses while maintaining China Southern`s leading position in the domestic e-business marketplace. This e-ticket venture under the management of Et-China and China Southern
is expected to reach gross ticket sales of more than RMB 500 Million in 2002 and RMB 1.6 Billion - or approximately 10% gross ticket sales of China Southern Airlines - in 2003. This exclusive joint venture will service China Southern Airlines` expanding e-ticketing needs for the next five years.
Mr. Yang Guang Hua, Vice President, China Southern Airlines and Mr. Matthew Chik-hui Ng, President and CEO of Et-China, signed the deal in Guangzhou.
Since the initial e-commerce agreement between China Southern and Et-china in December 1999, China Southern`s e-business has reached a number of impressive firsts in China: the first airline to offer Internet e-ticketing to an expanded number of domestic routes; WAP reservation service and comprehensive business travel solution packages for corporate customers. To further develop its Internet business, cut sales costs and reinforce the airlines` competitive position, China Southern formed this e-business joint venture with Et-China to inject more “energy” to its electronic Internet business platform.
The main goal of this newly founded company will be to gradually sell more high-yield airline tickets to generate additional revenue and reduce costs. The new company will also be responsible for market expansion and terminal servicing of China Southern`s E-commerce platform as well as taking part in selling value-added products such as hotels, travel/tourism packages and rental cars.
Et-china launched its Web site
in January 2000. The company provides real-time online ticket reservation, payment, and ticket delivery services to corporate and high-end leisure travelers within and from China. In October 2000, Et-china extended an exclusive multi-year strategic alliance with China Southern Airlines.
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