AIR France-KLM Group, Europe's biggest airline, is in exclusive talks with China Southern Airlines Co (stock code: 600029)about forming a freight joint venture.

The two airlines may create a cargo venture in China, Air France said yesterday in an e-mailed statement. Air France didn't provide details on the proposed joint venture or say how ownership would be shared. The carriers already cooperate in passenger and cargo services. The airlines share flights from hubs in Paris and Amsterdam, and from Beijing, Shanghai, Chengdu and Guangzhou in China, Air France said.