China Southern, Air France draw closer
3 June 2008
China Southern Airlines Chairman Liu Shaoyang stirred up speculation that Air France might take an equity stake in the Chinese carrier as the two airlines entered into a framework agreement for their cargo joint venture on Monday. "There will be a sequel," said Liu, speaking on the sidelines of the International Air Transport Association annual meeting in Istanbul, the South China Morning Post reported. He did not elaborate on his remark. Although Air France only owns 25% of the joint venture - which is to be called AE Cargo - it will appoint the chief executive. This is seen as a reflection of the European carrier's greater expertise in the international cargo market. The joint venture is only the second between a European and a Chinese airline, following Jade International, a tie-up between Shenzhen Airlines and Lufthansa.