The joint venture will operate from the airports of Tianjin, Shanghai and Guangzhou and aims to have 10 aircraft by August 2009, increasing to 12 in July 2010.
Air France-KLM and China Southern said last month they plan to reach an agreement on the cargo joint venture by the end of the year.
Air France-KLM is to take a 25% stake in the joint venture.
Source: Forbes