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China Southern Airlines said Monday it will raise up to CNY12.7b (US$1.9b) in a private sale of new shares to fund the purchase of aeroplanes and replenish working capital. The airline said CNY7.8b of the proceeds will be used to acquire 41 aircraft, and the selection and installation of lightweight seats for its A320 series aircraft. The rest of the proceeds will be used to supplement working capital, it said in a filing to the Hong Kong stock exchange. Chinese airlines have been aggressively expanding their fleet and route network to take advantage of strong travel demand from China, the world's fastest growing aviation market. China Southern Airlines announced a codeshare partnership with Etihad Airways June 22. <br/>

Delta Air Lines and Korean Air have finalised their agreement to from an antitrust-immunised transpacific joint venture in which the SkyTeam carriers will share costs and revenue on flights between the US and South Korea. The agreement follows an earlier MOU between the two airlines to form a JV, which is subject to regulatory approvals. The JV will include expanded codesharing in the transpacific market; joint sales and marketing initiatives in Asia and the US; the co-location of facilities at key hubs; allowing each carrier’s passengers to earn frequent flyer benefits on the other; and increased cargo cooperation. The two airlines said they will begin laying the groundwork to launch the JV. The carriers’ combined network reaches 290 destinations in the Americas and more than 80 in Asia. <br/>