Sino-European cargo deal a step closer

AIR France-KLM and China Southern have announced the signing of a Framework Agreement for the development of a Sino-European Cargo Joint Venture between both companies.

The agreement was signed on 2 June, 2008 in Istanbul on behalf of China Southern by Liu Shao Yong, chairman of the board of China Southern Airlines Co Ltd and Leo van Wijk, deputy chairman of the Air France-KLM Group. Also present at the signing were Jean-Cyril Spinetta, chairman of the Air France-KLM Group, Peter Hartman president and chief executive officer, KLM and a number of senior executives of both companies.

Shao Yong, said: “The signing of the Framework Agreement marks an important milestone for China Southern in its efforts to strengthen its core competitiveness. This Framework Agreement is an important step towards a Sino-European Cargo Joint Venture that will clearly provide China Southern with a viable option to optimise the use of its network. This project represents an alignment of interests and objectives between the two companies and we are confident it will succeed.”

Van Wijk, said: “Air France-KLM is very pleased to enter into partnership with China Southern on the development of this future Sino-European Cargo Joint Venture. This project clearly combines the strengths of both companies in the cargo industry and represents the basis for delivery long-term value not only to Air France-KLM and China Southern, but to our customers as well.”