22-Sep-2010 10:01 AM

Air France and China Southern sign JV; China Eastern agreement planned

Air France and China Southern Airlines signed (21-Sep-2010) a JV agreement, effective 01-Nov-2010, based on sharing revenues on operations between the two carriers' hubs, Paris and Guangzhou. Air France and China Southern will have joint governance of the JV. A management committee will be implemented, with five working groups in charge of implementing the JV agreements in the fields of network management, revenue management, sales, products and finance. Since 2004, Air France and China Southern have been operating codeshare between Paris and Guangzhou: China Southern operates four times weekly and Air France operates three times weekly on the sector. China Southern has also operated daily services between Guangzhou and Amsterdam in codeshare with KLM since 2001, with KLM also operating codeshare services with China Southern on Amsterdam-Beijing sector since Jun-2006. Air France CEO Pierre-Henri Gourgeon stated the carrier expects to sign a similar contract with China Eastern Airlines on Paris-Shanghai services (Xinhua, 21-Sep-2010). [more]

Air France: “This joint venture agreement strengthens the links which already exist between Air France and China Southern, who are also partners within the SkyTeam alliance. It consolidates our position in one of the most buoyant regions of the world and enables us to offer our customers improved service whilst maintaining costs. In this way, the Air France-KLM group is confirming its rank as European airline leader to China.” Pierre-Henri Gourgeon, CEO. Source: Company Statement, 21-Sep-2010.

China Southern: “By joining forces, China Southern – China’s leading airline and Air France, a European major – are entering a new phase of cooperation. The joint venture will enable both airlines to improve their competitiveness on a very buoyant market”, Tan Wan Geng, President and CEO. Source: Company Statement, 21-Sep-2010.

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