China Southern Airlines Company Limited (1055) announced the signing of a 2026-2028 Finance and Lease Service Framework Agreement with CSA Leasing on 27 October 2025. This agreement renews the company’s existing 2023-2025 framework. It covers several continuing connected transactions, including finance leases for aircraft, engines, simulators, and aviation-related equipment, as well as operating leases and certain aircraft-related disposals and acquisitions.

According to the announcement, CSA Leasing is a wholly-owned subsidiary of China Southern Air Holding (CSAH), the controlling shareholder of China Southern Airlines. As a result, the proposed transactions fall under connected transaction requirements. The finance and operating lease arrangements each exceed 25% in applicable percentage ratios and are classified as major transactions subject to both independent shareholder approval and disclosure under the Listing Rules. The aircraft-related disposals and acquisitions meet further thresholds, triggering additional disclosure obligations.

The company outlined proposed annual caps for total rental fees and right-of-use assets, referencing current market rates, benchmark lending rates, and equipment introduction plans. The agreement aims to broaden financing channels for fleet expansion and optimize aircraft usage. The announcement also disclosed that an independent board committee has been formed to advise non-connected shareholders on these transactions, and a circular with further details will be dispatched pending final preparation.