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"China Southern has, through an agent, got in touch with us on the possibility of setting up a joint cargo firm. We are interested in it, but negotiation has not yet started," Spinetta said.
Li Lei, a veteran aviation analyst with CITIC Securities, said China Southern would benefit from a tie-up with a European or North American counterpart, either in cargo or passenger transport, to push its business forward. Of the domestic top three, China Southern is the only airline that does not operate a cargo venture.
Air France KLM is Europe's leading airline group in terms of passengers carried to and from China, offering 59 weekly flights to five destinations Beijing, Shanghai, Guangzhou, Hong Kong and Chengdu.
According to Air France KLM's 2006-07 winter schedule it will offer 33 weekly flights to all four of its destinations in China from the end of October.