China Eastern Air Holding Company (CEAH) is joining hands with Delta Air Lines Incorporation (DAL) to strategically invest in the Air France-KLM Group (AFK), according to a joint announcement made by the three parties on July 27th, 2017.

On Friday, CEAH’s wholly-owned overseas subsidiary and China Eastern Airlines Co., Ltd. (CEA) signed a share subscription agreement and a cooperative marketing agreement with AFK. Under the confirmed trade framework, CEAH’s overseas wholly-owned subsidiary will pay 375 million Euros for a 10% stake in AFK and appoint a director to AFK. This is the largest strategic investment made by CEAH in its history.

DAL is also buying a 10% stake of AFK paying an equal amount of money and appointing a director to the European carrier.

While further strengthening their ties as SkyTeam members, CEAH, DAL and AFK, as three major carriers in China, the U.S. and Europe, will fully cooperate. Further, they will fully utilise each other’s strengths through their stakeholder partnership, so as to create a worldwide route network and reshape the landscape of international airline cooperation.  

Commenting on the partnership, Liu Shaoyong, chairman of CEAH, says, “As world famous airlines, CEAH, DAL and AFK have already established a sound cooperative relationship, which has laid a solid foundation for this partnership. Through investment and business cooperation, we hope the three parties can become closer strategic partners and provide more convenient, diversified flight services of higher quality for travelers across China, the U.S., Europe and the world at large, while working together with China Southern Airlines, Korean Air Lines, Aeroflot Russian Airlines as well as other SkyTeam members. We have confidence in our partnership and are looking forward to its future.”

Headquartered in Shanghai, CEAH, one of China’s three major air transportation groups, boasts a fleet of more than 650 modern aircrafts. With Shanghai, Xi’an and Kunming as its hubs, it has a vast air network and reaches 1,060 destinations in 177 countries and regions. Each year, it serves over 100 million passengers globally and ranks 7th in the world. Currently, CEAH has 67 flights each week to Europe covering nine destinations, including Paris, Frankfurt, London, Rome, Amsterdam, Madrid, Prague, Moscow and Saint Petersburg.