Buying Into China: American Airlines Buys Stake in Country’s Busiest Airline

This post may contain affiliate links; please read our advertiser disclosure for more information.

American Airlines China Southern Partnership

American Airlines China Southern Partnership

The airline industry is anything but stagnant with new partnerships emerging all of the time. Yesterday we covered Cathay Pacific & Lufthansa’s new codeshare partnership which was the first of its kind for the airlines. Today, American Airlines and China Southern have news of their own.

According to the BBC, American Airlines is buying $200M worth of shares in SkyTeam airline China Southern. (American is in the Oneworld Alliance.) This investment will give them a 2.7% share in the Guangzhou based airline.

It is no secret that China is the fastest growing aviation market and Chinese carriers have been aggressively expanding their fleets and footprints. A partnership like this will help both airlines gain greater access to each other’s aviation markets.

From the BBC:

In a filing to the Hong Kong stock exchange, China Southern said the two sides would work together to share transport, staff and airport facilities – as well as cooperating on code sharing and passenger loyalty programmes.

This is definitely an interesting development considering American currently partners with Cathay Pacific which is headquartered not far from China Southern. Of course China Southern is in the same alliance with Delta as well. From the language this seems like it will be a tight partnership. Only time will tell I suppose.

What do you think? Is this a good move by American or should they worry more about investing their money on the customer experience at home?

Shawn Coomerhttps://www.milestomemories.com
Since 2007 Shawn Coomer has been circling the globe with his family for pennies on the dollar. He uses that first-hand knowledge and experience to teach others how to achieve their travel dreams for the least amount of money possible.

More Like This

Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Sponsored

  • MtM recommended tool to track & organize credit cards
  • Best card offers personalized for you
  • Track bonus deadlines, fee dates & 5/24 status
  • Full Travel Freely overview

Free Sign-Up

moomoo - 2 Free Stocks!

Brokerage app moomoo is offering 2 Free Stocks! Just open an account and fund with $500 to get your stocks! Super easy.
Grab your 2 free stocks now!
BoardingArea

Subscribe To Our Newsletter

Join thousands of MtM readers who are subscribed to receive a once daily email with all of our posts. Never miss out!

You have Successfully Subscribed!