Guoxiang Wu:
The peak season of the [inaudible 00:02:33] because we have short holidays for the [inaudible 00:02:39] festival. All the airlines in China take their full capacities of the domestic network. Compared to the 2019, the capacities this year is fully recovered for the domestic network.
Adrian Scofield:
Tačno.
Guoxiang Wu:
But for the international network, because of the restriction of the government, we still have very low capacities for international travel.
Adrian Scofield:
Right. Yes. I was going to ask you about that. For international, how much of your network is actually operating?
Guoxiang Wu:
Nearly 10%.
Adrian Scofield:
Right. Okay. What sort of restrictions remain on international travel into and out of China?
Guoxiang Wu:
We still implement the flight one policies for the airlines to operate international routes. For every single airlines, operate single route to single country, once a week. That means flight one policies. We still have some green line to some certain countries, have different policies, just like Korea and some countries. But the capacity is still very low because we need to prevent the inbound pandemic.
Adrian Scofield:
Right. Okay. Are you seeing any signs of international recovery?
Guoxiang Wu:
Let’s see. From last year, I think the demand is very strong because as you know, at that time, many business people, many travelers, many students still in overseas countries, they need to come back to China. So at that time, the demand is very strong. But in this year, the international demand is decrease a little because not knowing, because many countries close their boat. So few people can travel overseas. So the inbound passengers, the inbound demand is decrease.
Adrian Scofield:
Right. Do you have any sense of when you might start to see recovery in international demand or traffic for your airline?
Guoxiang Wu:
I think the international demand is still exist, but the most headache and the most important things is to relax the restriction of the international travel. I think, especially the pandemic is still increase in many countries, recently. So the people still afraid to go out. So I think maybe in a little long time, the situation will be remain from now.
Adrian Scofield:
Right. Okay. What fleet changes has China Southern had to make in response to COVID, in terms of parked aircraft, early retirements, lease returns or that sort of thing?
Guoxiang Wu:
Yeah, that’s very important. That’s very important for this [inaudible 00:06:52] season, for every airlines. We need to restructure our fleet, including return some old aircraft, some wide-body aircraft, and cut some orders of the new aircraft, and restructure the financial or liaising structure. I think it’s very important for every airlines to reduce the costs, even though from our view, the international networks still face many difficulties in the future. So we must rethinking about our structure, our business model, our future.
Adrian Scofield:
Right. Are you able to say what particular types have been retired early due to COVID?
Guoxiang Wu:
We are just starting to return some old aircraft[1]Adrian Scofield:
Tačno.
Guoxiang Wu:
… such as Airbus 330. We also think about how to … We can … The largest aircraft in our fleet, such as Airbus A380, is still on our consideration, how we can solve this problem. But up to now, we still just on starting and only touch some aircrafts on our airports.
