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American Airlines Buys China Southern Shares
American Airlines Buys China Southern Shares. China Southern Airlines has completed the issue of 270.6 million shares listed in Hong Kong to American Airlines, making the US airline an official share holder.The transaction of HKD 1.55 billion (USD 198 million), which closed on August 10, gives American a 2.68 percent stake in the Chinese state-owned company. American will also have an observer on the board of China Southern, although he will have no voting rights.
American said on August 1 that the deal depended on the approval of an "exchange of slots" between the two companies. Earlier this week, however, the US airline confirmed its plans to launch its new flight from Los Angeles to Beijing in November after securing economically viable slots at the Chinese airport.
The purchase of shares is the first step in what is expected to be an important strategic alliance between the two airlines.
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