Finland's flag carrier Finnair confirmed it is looking to set up a cargo aircraft venture with private equity firm Neff Capital Management LLC.

"Due to increased cargo demand, FinnairCargo ... is exploring the possibility of participating in a project aimed at starting intercontinental freighter operations from Helsinki," Finnair said in a statement.

It added it was considering a minority shareholding in the new company.

Finnair also said it had agreed to sell two Boeing MD-11 aircraft to Neff Air. (Reuters)