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China Southern to ride out of turbulence

By Wang Ying (China Daily)
Updated: 2009-07-10 14:29

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China Southern Airlines looks set to be the first mainland carrier to fly out of the financial turbulence after securing 3 billion yuan of government injection last November. 

A company official said the money would be used to help reduce outstanding debt, which is weighing down not just China Southern but also the other major carriers like China Eastern and Air China, which had borrowed heavily in the past to finance their expansion spree. 

Among the trio, China Southern has proved the most resilient in the face of surging fuel prices in early 2008 and the sharp fall in demand since the outbreak of the global financial crisis. 

More importantly, the airline has largely avoided the fuel hedging losses that have sapped the financial strength of the other two carriers...

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