China Southern may sell stake to American Airlines

Potential tie-up could signify SOE reform, parity with 2 top carriers

China Southern Airlines Co said it is in talks to sell a stake to American Airlines Group Inc, betting big on the forecast of massive demand for travel between the two countries.

The negotiations are over "a possible major strategic cooperation with American Airlines Inc involving, among others, proposed issue of shares of the company and other business cooperation," China Southern said in an exchange filing on Sunday.