UANGZHOU, June 4 (GCTL) - China Southern Airlines looks set to be the first mainland carrier to fly out of the financial turbulence after getting a capital injection of 3 billion yuan (US$439.02 million) from the government, China Daily reported, citing a company official.

A company official said that the money would be used to help reduce outstanding debt, which is weighing down not just China Southern but also the other major carriers like China Eastern and Air China, which had borrowed heavily in the past to finance their expansion spree.

Si Xianmin, chairman, China Southern, said there still remains a lot of uncertainty for 2009, and it is hard to predict whether they would make a profit or not. "Our basic judgment is that the domestic aviation market will outperform the overseas market, and the second half of this year would exceed the first half," Si was quoted as saying by the Securities Daily on Monday.

Of the three major Chinese airlines, China Southern has proved the most resilient in the face of surging fuel prices in early 2008 and the sharp fall in demand since the outbreak of the global financial crisis. More importantly, the Guangzhou-based airline has largely avoided the fuel hedging losses that have sapped the financial strength of the other two carriers.

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