NewChina Eastern Airlines and Delta Air Lines detail market push
Under the HK$3.5 billion equity cooperation deal, the two airline companies will join forces to target the booming US-China tourism sector
China Eastern Airlines Corp and Delta Air Lines of the United States have laid out the details of their HK$3.5 billion equity co-operation in which they will join forces to tap the booming Chinese-American tourism market.
China Eastern last month revealed that Delta, based in Atlanta, Georgia, had become its largest external shareholder with a 3.55 per cent stake after buying 465.9 million shares.
"The two companies will collaborate on all aspects, including code-sharing, schedule coordination, joint sales and marketing, joint investments in lounges, frequent flyer plans, IT systems, as well as staff exchanges," China Eastern said in a statement on Tuesday.
China is the second-largest source of foreign tourists for the US and is expected to rise to be the largest in the next few years.
The two companies would strive to provide long-term, consistent services between China and the US, China Eastern said.
China Eastern operates more than 35 flights to four US cities every week. It plans to increase the frequency and expand its network in North America.
Delta runs 28 flights to Shanghai per week and has seen its Chinese network triple over the past five years, the statement said.