China Eastern buys 10pc Air France KLM stake

A man stands alongside the damaged engine of a China Eastern Airlines Airbus A330 aircraft on the tarmac at Sydney International Airport in Australia, June 12, 2017. — Reuters pic
A man stands alongside the damaged engine of a China Eastern Airlines Airbus A330 aircraft on the tarmac at Sydney International Airport in Australia, June 12, 2017. — Reuters pic

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

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