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China Southern leaves SkyTeam, planning to join oneworld

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Old Dec 25, 2019, 12:31 pm
  #46  
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Originally Posted by moondog
They might not care worry about CZ poaching their core customers, but they do care about their about the impact of CZ on their non-core and OW partner customers.
No, they don't. As I said, CZ and CX compete in different market segmentation.


Sure they can be alliance partners yet remain enemies, but this certainly doesn't make a case for OW membership from either airlines' standpoint.
It is your biased opinion.


Are you kidding? CX would lose its "gateway to China" position within OW if it allowed a Chinese carrier to join. A lot of OW partner airline fliers have gone out of their way in order to fly CX to reach cities like CTU, but a Chinese carrier would provide additional --often cheaper-- options at more sensible connection points.
It is a myth. All oneworld airline currently fly to Hong Kong provide very little onward connection to CX. CX has a very high connection passenger share in Hong Kong, but restricted to CX-KA connection only. Majority of oneworld airline flying to Hong Kong currently have a very high share of O&D from Pearl River Delta region. You are overstating the importance of oneworld connection to CX in HKG.

Plus, 'getaway to China' only serves less than 20 Chinese markets, where there are over 200 commercial airports in China. Getaway to China was never CX's mojo but an excuse of failed attempt to recruit any China based members. It is coming back to bite CX.


Their domestic network, especially post PKX ramp-up, is their strongest carrot
No deniable. But there is doubt on CZ's intention now. Rumour is circling around that China Southern may do what China Eastern was doing, trying to keep PEK/CAN and PEK/SZX route authority in PEK and give 10% of PKX's market share to CA and give up some hard fought international route authority in PKX to please CA. That is the sign that both China Southern and China Eastern have not much confidence in PKX's future.


I'm having a difficult time imagining scenarios in which droves of CZ customers who ply routes like URC-WUH would care at all about CX. Furthermore
Ask this question to BA and AA. It is not about how people travel and if they are interested. It is about POTENTIAL. Seriously, did you actually read what I wrote? It sounds like you are busy rebutting me without read it. Plus, many American travellers do not hold passport and only flies between LAS and MCO. That does not stop airlines to sign up with AA or DL or UA. It is all about market potential.



Right, this is why the AA-CZ, BA-CZ, and QF-CZ partnerships exist. Whether or not CX likes these, they have zero power to block them.
I don't understand your point. You might need to rephrase to make your point clear.



The routes listed are meaningless wrt CZ's threat to CX. The key issue is giving OW pax an alternative to CX in Greater China.
Again, CX only serve less than 20 Chinese market, and CZ only has less than a third of seats to CX's intercontinental getaways. They are two different players at different level. Your hypothesis is baseless. When CZ joins oneworld, all CZ passengers are OW pax. You see CZ as a big threat, CX does not. CX does not share your view. Without CZ raise frequency on key routes, there is no exodus of oneworld passengers to CZ, because, as I tried to explain to you, CZ has its own market shares in certain market and CX has its own too. These two won't change instantly. People fly CZ for cheap fare will continue to fly CZ, people likes CX quality will continue to fly CX. There are occasion changes that one might switch to CX from CZ after they found out the quality vs value. But those would be smaller numbers. But CZ has a much larger customer pool, a small number from CZ to CX is big to CX.



While it's true that CZ is based in Guangzhou, they are betting their future on Beijing. I don't think the Cantonese speaking issue causes their execs to lose much sleep.
What is your point? My point is CX is the de facto airlines to go if one is Cantonese speaker. So for those customers, CX will continue to be the number one choice. CZ can not steal these customers away even if they are in oneworld. Your remark is totally off topic or the point I was making.


------------------------
The bottom line is that CX would/will only permit CZ to join OW if the upsides (none that I can think of) outweigh the downsides (many).
CX has no choice if CZ decide to join oneworld. CX made a promise to recruit a mainland Chinese member 10 years ago (actually almost 12 years ago) and it did not happen. CX needs to hornor its promise to other oneworld members and it is not up to CX to decide who to be the next mainland Chinese member now. CX officially ceded veto power on this issue due to its promise. Let me give you another hint, the current AA Asia manager, who oversees AA operation and cooperation with JAL and China Southern is a former CX manager.
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Old Dec 25, 2019, 12:45 pm
  #47  
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Originally Posted by lsquare
That's really interesting and I had no idea that by law they can't speak Cantonese. Is the law really enforced though? What if someone from HK asked in Cantonese and the FA can understand and respond in Cantonese out of courtesy? Seems a bit weird to have the FA punished for that. It's not really a problem for me as I have can communicate in both, but your comment got my attention. As for English, yea, I totally agree with you, but it's not unique to CZ. All of the Mainland carriers don't have FAs that can speak decent English. I say that in general terms as there are exceptions.
China has a law to make Mandarin (Pu Tong Hua) the only Chinese language spoken in government and in public, which including service industry and transportation industry. It started few years back, but could be traced to a media celebrity turned politician, Wang Gang, who made it illegal to speak local dialect on TV and Radio. It caused major uproar from Cantonese speaking media. Nowadays in Guangdong province, all school is required by law to speak Mandarin and to teach Mandarin. It is well documented.

Is it enforced? I remember 4 years ago I went to an area where local dialect is rife (i.e. people do not speak Pu Tong Hua as natural choice), I needed something done in China Mobile. The agent had to speak in Pu Tong Hua although the patrons spoke local dialect. It was funny to watch. My local friend told me that the agent would loose her bonus if she failed to speak Pu Tong Hua all the time. It is a different matter if you work on your own or there is no rule in the company that Pu Tong Hua is the only way. So I don't think it is enforced. But if the company you work for is a public facing nature (i.e.Media, Utility, Transport, Telecom...etc.) and is a major SOE, you would expect the company is forcing it through company policies. And in public schools, you do not have a choice.
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Old Dec 25, 2019, 12:59 pm
  #48  
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Originally Posted by chongcao

CX has no choice if CZ decide to join oneworld. CX made a promise to recruit a mainland Chinese member 10 years ago (actually almost 12 years ago) and it did not happen. CX needs to hornor its promise to other oneworld members and it is not up to CX to decide who to be the next mainland Chinese member now. CX officially ceded veto power on this issue due to its promise. Let me give you another hint, the current AA Asia manager, who oversees AA operation and cooperation with JAL and China Southern is a former CX manager.
-as a founding member of OW, CX has the power to veto applicants, and this is common knowledge
-their (broken) promise to recruit a Mainland carrier does not strip them of this power
-if CZ was interested in joining OW, they could presumably apply pressure; the fact that they have not not done so suggests that they are happy with the AA and BA partnerships for now
-CX does NOT want a Mainland carrier to join OW. It doesn't matter who the front line people are; as long as the business case doesn't pencil, they will make sure that it doesn't happen.

Last edited by moondog; Dec 25, 2019 at 1:04 pm
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Old Dec 25, 2019, 1:19 pm
  #49  
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Since this thread is becoming cluttered with noise, I want state my point in a concise manner:
1. CX will not permit a Mainland carrier to join OW, unless it makes sense for CX
2. CZ wants to remain independent

We can debate the undercurrents until the cows come home, but they really don't matter.
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Old Dec 25, 2019, 3:04 pm
  #50  
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Originally Posted by moondog
-as a founding member of OW, CX has the power to veto applicants, and this is common knowledge
-their (broken) promise to recruit a Mainland carrier does not strip them of this power
-if CZ was interested in joining OW, they could presumably apply pressure; the fact that they have not not done so suggests that they are happy with the AA and BA partnerships for now
-CX does NOT want a Mainland carrier to join OW. It doesn't matter who the front line people are; as long as the business case doesn't pencil, they will make sure that it doesn't happen.

Which part of CX will not VETO CZ's oneworld membership do you not understand?

As I said before, CX made a promise to oneworld 12 years ago to recruit a mainland Chinese member. But this promise lapsed and CX publicly admit defeat and stated that it would not veto any mainland carrier recruited by AA or BA.

Your 'common knowledge' is true that CX can veto, but my problem is that CX have publicly said it will let AA and BA takes charge in recruiting a mainland Chinese carrier and would not veto whatever the alliance decide.

Plus, as I have illustrated before to you in another thread, CX had no problem about a mainland Chinese carrier, it tried to recruit China Eastern before 2007, then tried Air China soon after, also tried to talk to Shenzhen Airlines as the last resource. CX's only objection was for Hainan Airlines to join oneworld. It had not publicly state its objection on CZ yet.

There is no noise in this thread, but only you are making the noise. I am trying my best to inform you what I know but you are ignoring the most important part and some of the insider knowledge. You can not speak as a management from CX that CX does not want a mainland carrier in oneworld. It is not true and it has never been true.

And before I finish, I can tell you that China Southern had not submitted its application to join oneworld yet, due to other reasons (including its own management issues), CX is not the issue. And I tell you again, CX is not the issue. You have never worked inside CX boardroom, you do not know the process and thinking behind it. And I can tell you many times as you can listen, that CX has no issue with a mainland carrier in oneworld as long as it is not HU.
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Old Dec 25, 2019, 3:46 pm
  #51  
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Originally Posted by chongcao
Which part of CX will not VETO CZ's oneworld membership do you not understand?

As I said before, CX made a promise to oneworld 12 years ago to recruit a mainland Chinese member. But this promise lapsed and CX publicly admit defeat and stated that it would not veto any mainland carrier recruited by AA or BA.

Your 'common knowledge' is true that CX can veto, but my problem is that CX have publicly said it will let AA and BA takes charge in recruiting a mainland Chinese carrier and would not veto whatever the alliance decide.

Plus, as I have illustrated before to you in another thread, CX had no problem about a mainland Chinese carrier, it tried to recruit China Eastern before 2007, then tried Air China soon after, also tried to talk to Shenzhen Airlines as the last resource. CX's only objection was for Hainan Airlines to join oneworld. It had not publicly state its objection on CZ yet.

There is no noise in this thread, but only you are making the noise. I am trying my best to inform you what I know but you are ignoring the most important part and some of the insider knowledge. You can not speak as a management from CX that CX does not want a mainland carrier in oneworld. It is not true and it has never been true.

And before I finish, I can tell you that China Southern had not submitted its application to join oneworld yet, due to other reasons (including its own management issues), CX is not the issue. And I tell you again, CX is not the issue. You have never worked inside CX boardroom, you do not know the process and thinking behind it. And I can tell you many times as you can listen, that CX has no issue with a mainland carrier in oneworld as long as it is not HU.
What's wrong with HU? They're more of a threat than CZ?
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Old Dec 25, 2019, 8:24 pm
  #52  
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Originally Posted by chongcao
Which part of CX will not VETO CZ's oneworld membership do you not understand?

As I said before, CX made a promise to oneworld 12 years ago to recruit a mainland Chinese member. But this promise lapsed and CX publicly admit defeat and stated that it would not veto any mainland carrier recruited by AA or BA.

Your 'common knowledge' is true that CX can veto, but my problem is that CX have publicly said it will let AA and BA takes charge in recruiting a mainland Chinese carrier and would not veto whatever the alliance decide.

Plus, as I have illustrated before to you in another thread, CX had no problem about a mainland Chinese carrier, it tried to recruit China Eastern before 2007, then tried Air China soon after, also tried to talk to Shenzhen Airlines as the last resource. CX's only objection was for Hainan Airlines to join oneworld. It had not publicly state its objection on CZ yet.

There is no noise in this thread, but only you are making the noise. I am trying my best to inform you what I know but you are ignoring the most important part and some of the insider knowledge. You can not speak as a management from CX that CX does not want a mainland carrier in oneworld. It is not true and it has never been true.

And before I finish, I can tell you that China Southern had not submitted its application to join oneworld yet, due to other reasons (including its own management issues), CX is not the issue. And I tell you again, CX is not the issue. You have never worked inside CX boardroom, you do not know the process and thinking behind it. And I can tell you many times as you can listen, that CX has no issue with a mainland carrier in oneworld as long as it is not HU.
As usual, you keep making strong assertions as if you had inside information from many different sources (OW, CX, CZ).
If you do, please state what kind of sources you are using.
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Old Dec 25, 2019, 8:28 pm
  #53  
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Originally Posted by chongcao
Which part of CX will not VETO CZ's oneworld membership do you not understand?
The veto bullet is a last resort (i.e. actually using it is bad PR), but they certainly do have it. There are other ways to skin the cat.
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Old Dec 30, 2019, 1:17 am
  #54  
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Omg soo complex. But does that mean the domestic lounges are no longer available for CI (Emerald and Paragon) members flying domestically only?
I think I do understand that CZ flights do not need a CI codeshare to still be able to get all other benefits.

To be honest this is far better than I expected. Though quite surprised that China Eastern did not continue to co operate with CZ.
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Old Dec 30, 2019, 7:20 pm
  #55  
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Originally Posted by tris06
Omg soo complex. But does that mean the domestic lounges are no longer available for CI (Emerald and Paragon) members flying domestically only?
I think I do understand that CZ flights do not need a CI codeshare to still be able to get all other benefits.

To be honest this is far better than I expected. Though quite surprised that China Eastern did not continue to co operate with CZ.
CZ announced that benefits will continue with existing ST members:
Announcement-2019-China Southern Airlines Co. Ltd csair.com

That would suggest that the current arrangement is still in place, including lounge and miles-earning benefits.

A major reason for CZ leaving ST is that China Eastern was getting more important in the alliance through JV and shareholding. MU is a major Chinese rival. No surprise that it is excluded from the new arrangement.
Also note that Garuda is excluded too. GA flies to six Chinese cities and competes with CZ for leisure travel to Bali and Indonesia.
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Old Jan 10, 2020, 1:44 pm
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Originally Posted by brunos
CZ announced that benefits will continue with existing ST members:
Announcement-2019-China Southern Airlines Co. Ltd csair.com

That would suggest that the current arrangement is still in place, including lounge and miles-earning benefits.

A major reason for CZ leaving ST is that China Eastern was getting more important in the alliance through JV and shareholding. MU is a major Chinese rival. No surprise that it is excluded from the new arrangement.
Also note that Garuda is excluded too. GA flies to six Chinese cities and competes with CZ for leisure travel to Bali and Indonesia.
Thanks for sharing the link.

To be honest, I struggled with ALL my flights in 2019 to get the Sky Pearl benefits on Sky Team airlines. NOT A SINGLE FLIGHT WENT SMOOTHLY. I always had to explain the situation to the staff for priority boarding and extra luggage allowance. I may post a 2019 report as it was pretty interesting to renew my Sky Pearl membership.

I can't wait to see how it's going to be this year. I have a flight tomorrow on Air France. As per the announcement, I am entitled to an extra free baggage allowance, right? Let's see how it goes.

Edit: there is a new tab "Partner Airlines’ Benefit" on the Elite Benefits page, it might be easier than I thought:
https://skypearl.csair.com/en/about/youxiang.html
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Old Jan 13, 2020, 7:58 am
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Originally Posted by bonboncl
Thanks for sharing the link.

To be honest, I struggled with ALL my flights in 2019 to get the Sky Pearl benefits on Sky Team airlines. NOT A SINGLE FLIGHT WENT SMOOTHLY. I always had to explain the situation to the staff for priority boarding and extra luggage allowance. I may post a 2019 report as it was pretty interesting to renew my Sky Pearl membership.

I can't wait to see how it's going to be this year. I have a flight tomorrow on Air France. As per the announcement, I am entitled to an extra free baggage allowance, right? Let's see how it goes.

Edit: there is a new tab "Partner Airlines’ Benefit" on the Elite Benefits page, it might be easier than I thought:
https://skypearl.csair.com/en/about/youxiang.html
A very quick report... no surprise:
  • I have been asked to pay for checking-in my bag
  • When I went to the priority boarding lane, I had to explain the situation... they should call it "shame priorty boarding" benefit.
By the way, CZ has been very generous on transit accommodation, right? I had a chat with a ground staff a couple of weeks ago and it's now official on their website : NO MORE TRANSIT HOTELS for cheap tickets booked after January 26th.

https://www.csair.com/en/tourguide/t...ccommodations/

It is always funny to browse their website as I never ever get a single communication but see some changes from times to times.
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Old Jan 13, 2020, 9:38 am
  #58  
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Originally Posted by bonboncl

By the way, CZ has been very generous on transit accommodation, right? I had a chat with a ground staff a couple of weeks ago and it's now official on their website : NO MORE TRANSIT HOTELS for cheap tickets booked after January 26th.
The cheap tickets are (obviously) cheap, and hotels are also cheap. The bureaucracy the voucher entails --and dealing with passengers-- costs them more money than the hotels themselves. If you fly business class, they will hook you up because the hotel cost is minimal for them, but it's defies logic to offer free hotels on bargain basement fares.
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Old Jan 13, 2020, 11:10 am
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Originally Posted by moondog
The cheap tickets are (obviously) cheap, and hotels are also cheap. The bureaucracy the voucher entails --and dealing with passengers-- costs them more money than the hotels themselves. If you fly business class, they will hook you up because the hotel cost is minimal for them, but it's defies logic to offer free hotels on bargain basement fares.
I can't agree more. I am pretty sure I had journeys for which they actually lost money. As I have status, I was staying two times in grade B hotels (inbound and outbound) on some 200$ fare (before taxes). I am pretty picky but can't complain on that business wise decision. My wife managed to score a free presidential suite once, even better.

On the other hand, I keep reading on the Internet "China Southern is okay and if you have a long layover, they give you free hotel". That was also a good marketing move to get more visibility/customers especially from the European/US side of the world. If they were smart enough, they should have offered customers to pay little extra to get a room while booking the tickets. I am sure that's going to create a lot of fights at the gate 51 in the next months.

Anyway, in most fares, the gap is pretty huge between the cheap tickets/regular ones. I'll prefer to get a cheap 200 rmb night around the airport on my own rather than spending more cash on the flight tickets.

In terms of communication, they are pretty bad though. There are many changes happening and I didn't receive a single email. I have them on my wechat but still struggling to understand everything.
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Old Jan 13, 2020, 3:02 pm
  #60  
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Originally Posted by bonboncl
In terms of communication, they are pretty bad though. There are many changes happening and I didn't receive a single email. I have them on my wechat but still struggling to understand everything.
I haven't had a customer service issue with them in quite a long time, so my data points may no longer be relevant, but getting a refund from them --even on fully refundable tickets-- was really difficult. It wasn't a language issue; it was a "let's pass the hot potato back and forth between Beijing and Guangzhou for 18 months and hope that you give up" issue.
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