Delta Air Lines to buy stake in China Eastern Airlines

Ben Mutzabaugh | USA TODAY

Delta Air Lines is paying $450 million for a stake in China Eastern Airlines, a move the carrier hopes will help it gain access to China's burgeoning travel market.

The investment will give Delta a 3.55% stake in Shanghai-based China Eastern. Each airline's board must OK the deal. No timeline was given for when that might occur.

If approved, Delta says the deal will boost connecting options for both companies.

Delta and China Eastern are already partners and each belongs to the SkyTeam frequent-flier alliance. Earlier this year, Delta moved its Shanghai operations into the same terminal as China Eastern and its subsidiary Shanghai Airlines.

"It will become seamless for customers to book travel that spans both carriers," Vinay Dube, Delta's senior vice president – Asia-Pacific, says in a Q&A posted on the company's website. "That move alone will multiply the number of cities inside both countries that are now easily connected."

Delta has similar equity partnerships with a number of other airlines, including Virgin Atlantic, Brazilian carrier GOL and AeroMexico.

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