The two sides plan to expand their cooperation in code-sharing, frequent flyer benefits and lounge access from January 2019, pending approval from local civil aviation authorities.
It is unclear who will take over Tan's role at China Southern, but the move could see a string of personnel changes in the civil aviation sector.
Chinese airports increasing funding in IT from 5.6 percent of revenue in 2017 to 7.5 percent in 2018, higher than the global average of 5.69 percent.
Based on the premise that the sale does not affect the parent's holding status, the Shanghai-based group will transfer 125.8 million shares, Juneyao Airlines said in a statement yesterday.
The planned withdrawal of China Southern Airlines from the SkyTeam airline alliance signifies less close-knit alliances and more cross-alliance cooperation, analysts said.
British Airways has vowed to come up with more bespoke services for Chinese customers, as it pushes for growth in what is now the world's largest outbound tourism market.
The number of airlines has increased from five to eight today, of which Chinese airlines have significantly increased their share in the China-UK routes.
The flights can be for both domestic and overseas travel and are valid for five years.
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