American Airlines has committed to invest $200 million for a
2.8 percent stake in China Southern Airlines. Although each belongs to a
different alliance—China Southern is in SkyTeam, and American is in Oneworld—the
carriers plan to build a strategic relationship through the investment, for
which regulatory approval is pending. They plan to begin codesharing and
interline agreements this year and could collaborate in sales and frequent-flyer
programs, as well.
"China Southern's extensive network within China
touches developing and thriving markets that only a Chinese carrier can reach,
and they have a reputation and record of excellence," according to
American Airlines president Robert Isom. "We are two of the biggest
carriers in the world, and our networks are highly complementary."
American operates transpacific flights to Beijing and Shanghai,
while most of China Southern's transpacific flights originate from Guangzhou.
When codesharing begins, American will gain connections to about 40
destinations from Beijing and 30 from Shanghai. China Southern, which has been seeking
to grow its corporate business share, will gain connections to about 80
destinations from Los Angeles, San Francisco and New York.
American
is the second U.S. carrier to make a major investment in a Chinese airline,
following Delta's $450
million investment in China Eastern.