China Southern on track for AF-KLM venture

CHINA Southern Airlines and Air France-KLM aim to finalise their cargo joint venture deal this year, said the head of the Chinese carrier.

Exclusive talks between the two, were announced last June, at the same time that China Southern signed an agreement to join the SkyTeam alliance.

“We hope that we can sign the deal this year,” Liu Shaoyong, chairman of China Southern said. “Our discussions with Air France are going smoothly.”

China Southern is concerned about high fuel prices affecting its 2008 financials and has witnessed a slowdown over the last two months after a harsh winter.

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