The joint liability guarantee is designed to facilitate China Southern Airlines’ new airmen in 2007 to obtain loans in order to pay their training fees, tuition and incidental fees.

The providers of these loans are Bank of China’s Guangdong Branch and Liuhua Sub-branch of Industrial and Commercial Bank of China.

This year, China South Airlines plans to recruit 150 pilots, who shall pay training fees by themselves. Through this move, China South Airlines avoids paying a large sum of training fees for recruited airmen.

The guarantee period lasts from the availability of loans to two years later after the expiration of the loans.

According to the corporate charter of China Southern Airlines and the resolution of 2006 general meeting of shareholders, the board is entitled to approve no more than 100 million yuan of external guarantee with one fiscal year. (Edited by Liu Yanan; e-mail: )