Air France has signed a strategic agreement with Vietnam Airlines to establish a new joint venture (JV).

The proposed deal will be subject to approval from relevant authorities and is expected to optimise the services offered by both the airlines between France and Vietnam.

The JV is due to be launched early next month upon receipt of approval.

Both parties aim to provide better flight connections between France and Vietnam via the partnership, as well as improve services to customers travelling on each of their individual airlines.

Additionally, the JV is also expected to offer the benefits of various SkyTeam alliance services such as SkyPriority and lounge access, as well as Flying Blue and LotuSmiles loyalty programmes for the passengers.

Air France’s parent company Air France-KLM and Vietnam Airlines are both members of SkyTeam alliance, which currently comprises 20 member airlines and provides their customers access to a global network of more than 17,000 daily flights to 1,060 destinations across 177 countries worldwide.

"Our aim is to maintain and develop our position as European leader in this region with very strong growth potential."

Air France CEO Franck Terner said: “Consolidating our alliances is one of the aims of our Trust Together strategic plan.

"This JV agreement will be a long-term source of value for our customers and for our two airlines.

“Our aim is to maintain and develop our position as European leader in this region with very strong growth potential.”

In addition, Air France is currently negotiating an option with Indian carrier Jet Airways to form a partnership to enhance its long-haul flight network, reported Reuters.

Image: A Vietnam Airlines aircraft in the air. Photo: courtesy of Air France.