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Xiamen Airlines was founded on July 25th, 1984. At that time, it was the first airline in China organized as a business enterprise. Its two shareholders are China Southern Airlines Company Limited and Xiamen C & D Corporation Limited with 60% and 40% shares respectively. The founding of Xiamen Airlines was a result of CAAC's management system reform. Having gone through a six-year pioneering stage, five years of steady development and a further five years of expansion, Xiamen Airlines has now developed to be a medium-sized airline, operating a fleet of 28 Boeing jets, capable of providing 4,236 revenue seats. By 2003, the company's total assets reached 4,763 million yuan, and the net assets reached 1,293 million yuan. Xiamen Airlines has been carrying out the management reform and creative business strategy and managing the airline with standardized procedures and uniformed guidelines. It has been recognized as an accomplished airline by the travel public with countless awards by the aviation industries and local communities for safety, service and economic profit. Xiamen Airlines has maintained an outstanding profit margin for 17 consecutive years from 1987 to 2003. The profits for year 2003 alone were 121 million yuan and the profits for these 17 consecutive years reached 2,096 million yuan. Xiamen Airlines has always operated in accordance with national laws, and by 2003, it has paid a total of 1,584 million yuan for Civil Aviation Infrastructure Levies, and a total of 1,364 million yuan went in taxes. By 2002, it has paid a total of 1,015 million yuan dividends to its shareholders. Xiamen Airlines provides domestic and international passenger and cargo services from Fujian Province and other designated regions approved by CAAC to the neighboring countries or regions. It is the sales agent of other airlines, and it engages in many diversified businesses such as aircraft maintenance, air catering, hotel, tourism, advertising, import & export trade, etc. From Xiamen, Fuzhou, Jinjiang, Wuyishan and Hangzhou, as its main hubs, it operates scheduled domestic and international flights on nearly 100 routes to destinations including Beijing, Shanghai, Guangzhou, Hong Kong, Macao, Bangkok, Kuala Lumpur, Seoul, Singapore and most other major cities in China. It also operates scheduled and non-scheduled international charter flights. The airline has ticketing offices located at more than 30 domestic and international cities. Starting from 1995, CAAC has demanded the airline management to take on the full responsibility for their air safety. Since then, Xiamen Airlines was the winner of Jinyan Cup from 1995 to 1997, an award for setting the highest standards in the China civil aviation industry community for safe flight operation. It was the only airline in China to win Jinyan Cup for three consecutive years. After that, Xiamen Airlines won the Flight Safety Jinying Cup in year 1999 and 2001. Xiamen Airlines' Engineering & Maintenance Department has been audited by CAAC for its maintenance capability, and approved for accomplishing the following maintenance items, such as B737 / B757 airplane C4 Check, Middle Check and line maintenance, all scheduled maintenance tasks up to C check, engine replacement, Hot Section Inspection for JT8D-17A engine and APU, wheel brake unit repairs, Non-destructive Testing and other specialized services. Different from other local airlines with CAAC as one of its shareholders, Xiamen Airlines has been operating totally independently since its establishment. Xiamen Airlines has its own carrier's code and it is an IATA member. It has already established an operation and management system with its own characteristics, and it has gained recognition for flight safety, quality maintenance and sincere customer service. It has given great rewards to its shareholders and has made a big contribution to the society. Xiamen Airlines is a successful example of the CAAC's management system reform.