American Airline has committed to making a US$200 million equity investment in China Southern Airlines to "create strong foundation for a long-term relationship", the American-based carrier announced.
Robert Isom, president of American Airlines, said China Southern’s extensive network within China touches developing and thriving markets that only a Chinese carrier can reach. The Chinese carrier's reputation and record of excellence have also motivated the commitment.
"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 travelers. This investment will allow us to build a relationship that will benefit our teams, the communities we serve and the millions of customers around the globe who travel with us each day."
The carriers said they are planning to give travelers the amenities, features and the products at different price points, as well as extend the network. They also expect to begin codeshare and interline agreements that will give customers access to destinations in China, as well as North and South America later this year.
China Southern chairman Wang Cheng Shun said, "We’re pleased to begin this relationship to better connect two of the world’s largest aviation markets and leading economies. Our cooperation has the possibility to create enormous benefits for our industry and customers around the world as we work to offer them more travel options and better value."