Source: ATW Daily News Author: 07/21/2008
Subject Concerned: Airlines Aviation Fuel
China Southern Airlines plans to reduce the pay of all executives, including Chairman Liu Shaoyong, by 10% in an effort to cut its operating expenses by 1.3 billion yuan (US$190.3 million) by year end.
The domestic fuel price has risen to 8,720 yuan per ton, nearly four times greater than in 2005.
The increase has hit CZ the hardest, as it operates the greatest number of domestic routes.
Although the Guangzhou-based carrier raised its fuel surcharges this month, it still expects fuel expenses to increase by 1.86 billion yuan this year.
Confronted with surging fuel prices and weakening market demand, CZ noted in a statement that it would cut 800 million yuan from infrastructure investment this year and save another 500 million yuan through fuel savings, optimizing capacity and sales promotions.