All aboard: American Airlines takes $200 million stake in China Southern


China Southern Airlines Co Ltd (1055.HK)(600029.SS) said on Tuesday it would issue HK$1.55 billion ($199.6 million) worth of shares to a subsidiary of American Airlines Group Inc (AAL.O), giving the U.S. airline a stake in China's largest carrier.

The deal would make American Airlines the second U.S. carrier to own part of a Chinese airline after Delta Air Lines Inc (DAL.N) bought 3.55 percent of China Eastern Airlines Corp 6000115.SS (0670.HK) for $450 million in 2015.

It also means that China's three biggest airlines now all have tie-ups with foreign airlines, something Beijing has encouraged as a way to boost the sector's global competitiveness. Hong Kong's Cathay Pacific (0293.HK) and Chinese flag carrier Air China (601111.SS) (0753.HK) purchased a stake in each other in 2006.

Read more at Reuters