HUGH MCATEER
China Southern Airlines, the largest airline in The People's Republic of China, has concluded a novel customer loyalty collaboration with Kelon, the country's largest refrigeration appliance manufacturer, aimed at the rapidly growing Chinese middle class.
The agreement covers provision of air ticketing, air cargo and the exchange of China Southern's Sky Pearl Club frequent flyer mileage for merchandise from Kelon's product line.
All Kelon employees, and its forwarders, will be guided to China Southern Airlines as the refrigeration appliance manufacturer's key air transportation supplier.
Cargo
All Kelon's air cargo will be carried on China Southern Airlines.
China Southern Airlines employees and their families will also enjoy preferential fares when they purchase the Huabao air conditioner and Rongsheng refrigerator, made by Kelon.
Kelon has 14,000 employees – including more than 2,000 engineers – and total assets of more than $940 million.
It is the listed on both the Hong Kong and mainland China stock exchanges.
China Southern offers the most extensive domestic flight network in China, with direct flights to more than 80 cities, and has more than 25% of China's domestic market share and more than 50% of Guangzhou's air market share.
Challenge
The senior management team of China Southern realised that it would not face the challenge of free-market competition by just selling airline tickets, says a company spokesman.
China Southern is instead focused on earning and retaining customer loyalty in the wake of rapid growth of China's middle class .
China Southern Airlines is also cooperating with China Post and China Mobile in the area of cargo, airline ticketing and customer services to attract and retain the first time customer as a long-term frequent flyer.
Source: Flight Daily News
