China Southern left Skyteam late last year. As one of the world's largest airlines by fleet size, with plans to become the world's largest, this was an interesting development for China Southern. Now, it seems that much of China Southern's future plans shaped the rationale for the carrier to leave Skyteam.

China Southern and Skyteam

China Southern first joined Skyteam back in 2007. At the time, they were the first mainland Chinese carrier to join the Skyteam alliance. However, by the time they left, there was another major Chinese carrier in Skyteam: China Eastern. This was one of the reasons China Southern decided to leave Skyteam.

Why China Southern left

China Southern left the Skyteam alliance in order to pursue partnerships and cooperation with airlines that extend outside of the alliance itself. Though China Southern was the first mainland Chinese carrier to join Skyteam, they didn't receive much love from what could be a fighting force in the region. Instead, major alliance members Delta and Air France-KLM chose to instead partner much more closely with Shanghai-based China Eastern.

China Southern saw additional opportunities outside of Skyteam. So, given the costs associated with being in the alliance and the lack of support from other members, it became clear that China Southern's future was outside the alliance. Indeed, after leaving Skyteam, China Southern and American Airlines forged a much closer partnership. This is lucrative for American Airlines since they don't have much of a slice of the Chinese market.

Daxing Airport

There seems to be another layer to this story. Business Traveler reports that China Southern believes Skyteam couldn't help them fill the capacity they needed at Beijing's Daxing Airport, where China Southern will open a new hub. After all, China Southern will have 40% of the slots at Daxing Airport and is using it to inaugurate additional, lucrative international services to destinations like London.

China Southern has a bit of a point when they say alliance members wouldn't help them fill capacity. Indeed, looking at Guangzhou, neither Air France, KLM, or Delta serve Guangzhou. Meanwhile, all three airlines serve Shanghai. Delta, in fact, is even looking to expand from Shanghai with a new flight to Minneapolis. No doubt, this is to strengthen their partnership with China Eastern.

China Southern's main hub is Guangzhou. They have an established hub there with plenty of resources and infrastructure to support their operations. Meanwhile, Daxing is a new airport and China Southern will have to invest heavily in building up their network and passenger base. Without the support of alliance partners, it is clear that China Southern strategically examined their relationship with Skyteam airlines before announcing their departure.

Overall

China Southern's departure from Skyteam allows them to more openly cooperate with other airlines. In particular, China Southern forged a closer partnership with American Airlines and even Qatar Airways took a stake in China Southern. It seems that China Southern is focused on building up these relationships in anticipation of opening their new hub at Daxing and, in the future, joining Oneworld.

Oneworld lacks a mainland Chinese partner (although they do have Cathay Pacific), but they could warm up to China Southern if major airlines like American and British Airways cosy up to them.

Why do you think China Southern left Skyteam? Let us know in the comments!