China Southern Airlines plans to implement a revenue-sharing scheme and a code-sharing arrangement with its new merger partners, China Northern Airlines and Xinjiang Airlines. However, it is uncertain how much of an impact the plan will have, given that much of the airline's announcement seems to be a rehash of a move made nearly two years ago by Beijing to stop destructive price competition on major domestic routes. Mainland airlines have also failed to say what they planned to do with the spare aircraft capacity, much of it less than a decade old, that will arise from the restructuring plan if flights and services are to be reduced to more profitable levels. China Southern company secretary Su Liang said the new group planned to put between 60 to 70 overlapping routes into the revenue sharing scheme. He would not say how much of the revenue from each route would be pooled. Mr Su also acknowledged that the scheme was part of a plan implemented by the Civil Aviation Administration of China (CAAC) as far back as 2000, which pooled revenues from 108 routes as part of a move to reduce price wars and restrict illegal fare discounting. He did not elaborate, however, on how many of the routes to be pooled under the new scheme were already covered by the CAAC's earlier plan. At the same time, China Southern also planned to code-share more than 30 routes with its two new partners, China Northern and Xinjiang Airlines, to further cut route capacity for the three carriers. An industry analyst said it was reasonable for the carrier to introduce these measures but he remained doubtful on whether the programmes would help reduce capacity and operating costs. He said there was still overcapacity in the mainland aviation industry as passenger load factors amounted to just 60 per cent on domestic flights. China Southern also did not say what it planned to do with the excess aircraft that would emerge if the trio cut their routes and frequencies. The three main airline groups - led by Air China, China Southern and China Eastern Airlines - will have 419 aircraft in total and assets of 158 billion yuan, accounting for 80 per cent of the industry's assets. The new China Southern group is expected to have nearly 200 aircraft in its combined fleet. 'The measures may be able to reduce the number of flights but the company did not give any details on how to cut costs,' the analyst said. China Northern has 55 routes competing directly with China Southern, whereas Xinjiang has eight - comprising 21.6 per cent and 7.38 per cent, respectively, of China Southern's total annual revenues last year. The analyst said the three airlines ran 512 domestic routes in total, while about 30 per cent of the routes overlapped.