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Tuesday, January 6, 2015

China Southern Airlines Removes More Executives Amid Investigation

(WSJ) China Southern Airlines Co. said on Monday that it removed its chief financial officer and an executive vice president from their posts amid a police investigation.

The move brings to four the total number of executives the state-run Chinese airline has said is under investigation. The company said last week that it removed its director of flight operations as well as an executive vice president from their posts for similar reasons.

The Guangzhou-based company said the probe was "due to suspicion of job-related crime," but it hasn't provided further details. Company representatives weren't immediately available for comment late Monday.

China Southern on Monday said that it was notified of an investigation into CFO Xu Jiebo and Executive Vice President Zhou Yuehai.

China Southern, which has the country's largest airline by fleet size, said the removals wouldn't have an impact on its business or operations. The company has the largest domestic presence of China's big three state carriers but like its peers has struggled due to slowing domestic economic growth and a frugality campaign that has weighed on sales of first- and business-class tickets.

The latest probe into China Southern comes amid China's anticorruption campaign, which has gathered momentum since President Xi Jinping took office two years ago. Communist Party leaders have acknowledged that perceptions of corruption threaten their grip on power.

Source: Wall Street Journal by Wayne Ma


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