U.S.-based Delta Air Lines has said it will invest US$450 million to purchase a 3.55 percent stake in Shanghai-based China Eastern Airlines. The deal has yet to be approved by the two airlines respective boards of directors, but both are already members of the SkyTeam Airline Alliance and have a code-sharing agreement for passengers.
This deal, if approved, will also entitle Delta to an observer’s seat on the China Eastern Board of Directors. “Delta’s relationship with China Eastern is long-standing. We share a vision that will create the most profitable, enduring franchise between the U.S. and China,” said Richard Anderson, Delta’s CEO.
Delta recently moved to Terminal 1 at Shanghai-Pudong Airport to co-locate with China Eastern and its subsidiary airline, Shanghai Airlines.