In a first of its kind investment by a China’s state-owned airlines carrier, China Eastern Airlines Corp Ltd is buying a 10 percent stake in Europe’s Air France KLM SA for 375 million Euro ($438 million) according to Reuters. Delta, which holds a 3.2 percent stake in China Eastern, is also buying a 10 percent stake in Air France KLM.
According to China Eastern, the deal parallels China’s “Belt and Road” initiative which seeks to improve trade and transport links between Asia and Europe.
About China Eastern Airlines Corp
China Eastern Airlines was established in 1988 and is headquartered in Shanghai, China. The Chinese government has a majority ownership stake in China Eastern Airlines (61.64%), while the rest is publicly traded. It comprise of more than 80,000 employees and generated a revenue of US$ 12 billion (CNY 85.25 billion) in 2012.
About Air France KLM
Air France–KLM is a Franco-Dutch airline holding company incorporated under French law with its headquarters at Charles de Gaulle Airport near Paris. Air France–KLM is the result of the merger in 2004 between Air France and KLM. Air France–KLM Airlines transported 87.3 million passengers in 2014 and generated a revenue of 26 billion euro (US$ 30.87 billion) in 2015. The company employs more than 96,000 employees as of 2015.