China Eastern buys 10pc Air France KLM stake
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SINGAPORE, July 28 — China Eastern Airlines Corp Ltd said this morning it would buy a 10 per cent stake in European carrier Air France KLM SA and form a strategic partnership to improve its presence in the China-Europe market.
The US$438 million (RM1.8 billion) 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 perccent stake in China Eastern is also buying a 10 per cent stake in Air France KLM.
All three airlines are members of the SkyTeam alliance. — Reuters