Delta Air Lines will buy a stake in China Eastern Airlines as the two carriers strengthen their partnership serving the United States and China, the companies announced Monday. Under a preliminary agreement, Delta will invest $450 million to acquire a 3.55 percent stake in China Eastern and will be given an observer seat on the Shanghai-based airline's board of directors.
The agreement depends on reaching a final marketing deal and approval by each carrier's board. "Delta's relationship with China Eastern is long-standing. We share a vision that will create the most profitable, enduring franchise between the US and China, with world-class customer service," said Richard Anderson, Delta chief executive, in a statement. The Atlanta, Georgia-based Delta serves the three largest cities in China with six daily non-stop flights from the US. China Eastern serves the three largest US markets, with four non-stop flights from Shanghai.
Under a codesharing agreement, the two also operate flights on 30 domestic routes in the US, 43 domestic routes in China and seven trans-Pacific routes between China and the US. "The co-operation between China Eastern and Delta is a strategic co-operation between two excellent airlines which connect the world's two top economies as well as two top air transportation markets. We're fully confident in the prospect of the co-operation," said Shaoyong Liu, chairman of China Eastern, in the statement.