American Airlines takes stake in China Southern

American Airlines has announced a US$200 million equity investment in China Southern Airlines, representing 2.76 per cent stake, which will see the two begin codeshare and interline agreements later this year.

“China Southern’s extensive network within China touches developing and thriving markets that only a Chinese carrier can reach,” said Robert Isom, president of American Airlines.

China Southern Airlines

“We are two of the biggest carriers in the world, and our networks are highly complementary, with the potential to offer China Southern and American customers an unmatched range of destinations in two critical markets for business and leisure travellers.”

China Southern’s chairman, Wang Chang Shun, also expects the relationship “to better connect two of the world’s largest aviation markets and leading economies”.

China Southern’s primary hub is located in Guangzhou with the majority of its transpacific flights positioned there, while American flies to Beijing and Shanghai from its hubs in Chicago, Dallas Fort Worth and Los Angeles.

With the codeshare, American customers will be able to access nearly 40 destinations beyond Beijing and more than 30 destinations beyond Shanghai. China Southern customers will gain access to almost 80 destinations beyond Los Angeles, San Francisco and New York’s Kennedy Airport in North and South America.

American currently offers daily service from Dallas Fort Worth to Hong Kong, Beijing and Shanghai; Los Angeles to Hong Kong and Shanghai; and Chicago to Beijing and Shanghai. All flights to Beijing and Shanghai are operated on its Boeing 787-8 Dreamliner, while its Hong Kong flights are operated using its flagship Boeing 777-300.

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