oneworld Alliance is reported to be considering adding China Southern Airlines to its group, according to a Bloomberg report. However, sources close to the deal have confirmed that no final decision has been taken as China’s entry restrictions have avoided in-person discussions.
oneworld stated that it could not comment on prospective members and negotiations until a point is reached where a public announcement can be made. "With international travel recovering from the pandemic, alliances have become even more important by offering global connectivity for airlines and their customers," said oneworld.
One of the main reasons behind China Southerns entry into oneworld is its close ties with oneworld airline members. Airlines like American Airlines and Qatar Airways have equity stakes in China Southern while British Airways and Finnair have commercial agreements with China Southern.
As per sources, British Airways and American Airlines, two leading oneworld Alliance members have been very supportive of China Southern's prospective joining. Going ahead, China Southern has not filed an official application to join oneworld.
China Southern left the SkyTeam alliance four years back, in 2019 after being a member for ten years. During this time, Delta invested in SkyTeam member China Eastern, leaving little value for China Southern in the alliance. Prior to that in 2017, American Airlines invested in China Southern.
Another hindrance for China Southern to join oneworld is Cathay Pacific. Cathay Pacific is a founding member of oneworld alliance and the founding members have veto rights about which airlines can join the alliance. The headquarters of Cathay Pacific and China Southern are located within 100 miles of each other, so this would add some element of competition for Cathay Pacific.
Going ahead, there is a chance that China Southern might become a oneworld Connect partner, which gives airlines and passengers some alliance membership benefits without fully joining. This would allow other oneworld airlines flying to China and connecting to other destinations could fly with China Southern.