New | Delta Air Lines to buy into China Eastern for US$450m

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 yesterday.

Under a preliminary agreement, Delta will invest US$450 million for a 3.55 per cent stake in China Eastern and will be given an observer seat on the Shanghai-based airline's board. The agreement depends on reaching a final marketing deal and approval by each carrier's board.

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 transpacific routes.

Watch: A look at the Delta-China Eastern Airlines deal