ISTANBUL: China Southern Airlines and Air France-KLM Group yesterday signed a framework agreement to establish a cargo joint venture by the end of this year.

Guangzhou-based China Southern will control 75 percent of the cargo carrier's shares. The Franco-Dutch airline group will hold the rest of the shares and name the CEO.

The new company, likely to be named AE Cargo, is expected to operate at least 10 cargo planes in two years, said Liu Shaoyong, China Southern's president.