CHINA: It’s a go for AFrance-KLM/ China South venture

Air France-KLM and China Southern Airlines have signed a Framework Agreement for the development of a Sino-European Cargo Joint Venture which is expected to receive the necessary approvals by year-end. The newly formed company is to be named AE Cargo (Asia-Europe Cargo), in which Air France will not hold more than 25 per cent of […]


Air France-KLM and China Southern Airlines have signed a Framework Agreement for the development of a Sino-European Cargo Joint Venture which is expected to receive the necessary approvals by year-end.

The newly formed company is to be named AE Cargo (Asia-Europe Cargo), in which Air France will not hold more than 25 per cent of the shares. The French-Dutch airline will however provide the CEO. Asia-Europe Cargo will develop a 10-aircraft fleet in the next two years. Both partners still have to determine the hub location, either in Guangzhou, Shanghai or Shenzhen.

“The signing of the Framework Agreement marks an important milestone for China Southern in its efforts to strengthen its core competitiveness,” said China Southern Airlines board chairman, Liu Shao Yong.

The joint venture will provide China Southern with the opportunity to optimise the use of its network Liu said, adding: “This project represents an alignment of interests and objectives between the two companies and we are confi dent it will succeed.”

China Southern Airlines operates more than 600 domestic and international routes with destinations to 152 cities throughout China and the world, with Guangzhou and Beijing as its twin hubs. Air France, KLM and China Southern are all members of the SkyTeam global alliance.