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Wednesday, October 23rd, 2019

China Eastern buys 10 percent Air France KLM stake to boost European presence

by July 28, 2017 General

SINGAPORE (Reuters) – China Eastern Airlines Corp Ltd <600115.SS> said on Friday it would buy a 10 percent stake in European carrier Air France KLM SA <AIRF.PA> and form a strategic partnership to improve its presence in the China-Europe market.
The 375 million euro (335 million pounds) investment in Air France KLM is compatible with China’s “One Belt, One Road” trade initiative, the Shanghai-based airline said in a statement.
“The parties will work together to build the China-Europe main routes market,” China Eastern said.
Air France KLM said in a statement that the alliance would give it a European leadership position in Shanghai, the main business travel market in China.
Delta Air Lines, which holds a 3.2 percent stake in China Eastern is also buying a 10 percent stake in Air France KLM.
All three airlines are members of the SkyTeam alliance.

(Reporting by Jamie Freed; Editing by Richard Pullin)