China Southern in talks to join Oneworld

China Southern Airlines could join Oneworld alliance, according to Bloomberg. The possibility had already been speculated four years ago, when the Chinese carrier left the SkyTeam alliance.

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While it has not been part of any alliance since then, the airline based at Guangzhou Baiyun International Airport (CAN) maintains close business relationships with several Oneworld members.

American Airlines (which in 2017 provided equity in China Southern) and Qatar Airways maintain a minority shareholding in the company, which also has a commercial partnership with British Airways. It also mantains a codeshare agreement with Finnair.

Both the American and the British carriers have publicly expressed their support for China Southern’s accession. However, the Chinese company has not yet submitted a formal application.

The importance of Chinese membership and the role of Cathay Pacific

The addition of China Southern would be important for Oneworld, which for the first time would have a member based in mainland China. Until the pandemic began, the Asian giant’s airline market was one of the largest and fastest growing in the world. Both SkyTeam and Star Alliance, the other two major global airline alliances, already count Chinese carriers among their members.

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However, Cathay Pacific’s position on the issue could turn the tide. The Hong Kong-based airline, a founding member of Oneworld, has the right to veto new entrants. China Southern’s membership would mean additional competition for it, due to the proximity between Guangzhou and the special administrative region of the People’s Republic of China.

Another possibility is for China Southern to join Oneworld Connect, a division of the alliance launched in 2018 that offers a different membership, with only some of the benefits derived from being part. In that case, Oneworld airlines passengers on flights to China would be able to continue their journey via China Southern’s domestic connections.

See also: Another airline says goodbye to the Airbus A380