China Southern Establish Cargo Joint Venture With Air France-KLM

Istanbul, Turkey - June 2, 2008 - China Southern Airlines, ( CZ,) - www.csair.com/global - the newest member of SkyTeam and the largest airline in The People’s Republic of China today signed a framework agreement with the Air France-KLM Group to set up a cargo joint venture operation.

The agreement was signed in Istanbul between China Southern Airlines Chairman Liu Shaoyong and Air France-KLM Vice-Chairman Leo Van Wijk. Present at the signing were Air France-KLM Chairman Jean Cyril Spinetta, China Southern Airlines President Si Xiamin, KLM CEO Peter Hartman and senior management of both airline organizations.

Details of the joint venture will be further discussed and studied with all preparations estimated to be completed by year’s end.
China Southern Airlines Chairman Liu Shaoyong said, “Signing the framework agreement is an important milestone for China Southern Airlines to enhance its strength and competitiveness. The framework pact is a key step for both parties to establish a cargo joint venture, which will give full rein to China Southern’s advantage in route network. This joint venture program is an effective integration of the both sides strategic targets and common benefits. We are fully confident in its success. br>
Air France-KLM Vice-Chairman Leo Van Wijk said, “Air France-KLM Group is very happy to work together with China Southern Airlines for the establishment of a cargo joint venture. This project will undoubtedly further enhance the both parties strength in cargo market, bringing about long-term benefits not only to the cargo business for both sides but also to our customers. br>
The cargo joint venture between China Southern and Air France-KLM will boost the network transport capacities for international cargo, offering practical benefits to the consignors and customers and driving the further development of aviation logistics between China, Europe and the United States.

For example, clothing and electronic products made in China will be transported to the varied markets in Europe and the United States in a faster and more convenient method. Similarly, those mechanical equipment and high-tech components manufactured in Europe and the United States will enjoy more channels into the Chinese marketplace, providing more choices to both the customers and consumers of China, Europe and America.

The newest member of SkyTeam www.skyteam.com and the largest airline in The People’s Republic of China for the past 29 years, China Southern Airlines connects more than 80 cities around the globe. Major business and vacation destinations served in China include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan and as well as International service, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Islamabad, Kuala Lumpur, Jakarta, Lagos, Los Angeles, Manila, Melbourne, Moscow, Osaka, Paris, Penang, Phnom Penh, Seoul, Singapore, Sydney and Tokyo.
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