Taipei  - Taiwan's China Airlines (CAL) and China's China Southern Airlines signed a memorandum of cooperation on Monday, allowing them to represent each other's businesses in passenger, cargo, maintenance, and ground handling operations, CAL said in a statement.

Under the pact signed in Guangzhou, China, China Southern will support CAL's bid to join the SkyTeam alliance.

Both carriers will continually revise the details of their operations based on the new memorandum, which creates a win-win situation for passengers who travel across the strait by providing high-quality and convenient service, CAL said.

Prior to signing the new memorandum, CAL and China Southern Airlines already had a strong partnership, working together on inter-line check-in, passenger baggage check-through, Partnership Mileage Program, and inter-line ticket issuing.

China Southern Airlines, based in Guangzhou, operates more than 330 aircraft and has the most extensive domestic air network in China.

In 2007, according to the International Air Transport Association, China Southern Airlines ranked number one in Asia in annual passenger traffic volume, and ranked fourth worldwide. China Southern Airlines is a member of SkyTeam, and together with its airline partners it serves more than 840 cities in 162 countries.

CAL is the largest airline in Taiwan. It has 67 planes operating passengers and cargo service to 68 destinations in 25 countries. (dpa)