China Southern Airlines is applying for another capital injection from the government, according to Chairman Si Xianmin.

Beijing gave the airline CNY3 billion ($438.7 million) last year. "We hope to get more government capital, but we don't have the final say," Si said.

The domestic market is showing signs of recovery and Si predicted the rate of growth will increase toward year end. On Friday, CAAC reported that August passenger boardings were up 41.6% year-over-year while cargo traffic jumped 8.6%.

However, Si warned that the international cargo market "won't recover in the next three years." CZ's planned cargo joint venture with Air France has been postponed as a result of the downturn.

CZ reported a CNY25 million net profit in the first half of 2009 thanks to government aid that included last year's suspension of a civil aviation construction fund imposed by CAAC. Si called on the regulator to rescind its decision to reimpose the fee at some point in the current semester.

Source