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This Airline May Overtake American Airlines for the World's Largest Fleet

Sept. 17, 2018
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3 min read
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This Airline May Overtake American Airlines for the World's Largest Fleet
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One of the world's largest airlines has plans to grow signifigantly larger. China Southern wants to quadruple its fleet size and take on more partnerships to become a superpower in the world of aviation.

China Southern CEO Tan Wangeng said that he wants to grow the airline's fleet to 2,000 aircraft by 2035. The SkyTeam carrier currently has about 786 passenger and cargo aircraft.

“We plan to have 1,000 aircraft by 2020 and by 2035 it will increase to 2,000,” Tan told the World Routes conference.

For context, American Airlines is currently the largest airline by fleet size, revenue and destinations served — with a total of about 948 aircraft it currently operates. Bloomberg says that number will fall to about 935 after new aircraft are delivered and others are retired. This means China Southern may have the world's largest fleet of passenger aircraft in 2020.

Is it even possible to grow that large, and that quickly? In March, Flight Global reported that the airline is supposed to receive 309 aircraft through 2020 and that in 2018 alone its expected to take delivery of 115 jets including "61 Boeing 737-800s, 39 Airbus A320 family jets, 10 787-9s and five A330-300s."

Other Chinese carriers like China Eastern and Xiamen all have aggressive growth plans due to the explosion in demand for air travel by Chinese citizens.

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“By 2020 there will be 200 million outbound tourists from China. This provides us with a lot of opportunities for development,” Tan said.

However, the airline is eyeing to work with budget airlines who are becoming bigger and bigger players in China and Southeast Asia.

“All major airlines need partners and we are looking into the possibility of establishing more joint ventures. We haven’t tried with low-cost carriers yet, but we are considering how to cooperate with them,” Tan said.

Last week Boeing said it predicts China Southern will purchase 7,690 new jets over the next two decades. China is getting into the aircraft manufacturing industry itself — state-owned firm Commercial Aircraft Corporation of China delivered its first smaller regional jet in 2015 and will deliver its first mid-sized aircraft (C919) by 2021. The C919 is comparable in size to a Boeing 737 and it may be an aircraft that China Southern purchases one-day.

TPG flew in China Southern First Class aboard the carrier's 777 and praised it for good award availability — although there were many areas where the carrier could improve.

H/T: Reuters

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

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  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.