American Airlines to invest US$200m in China Southern Airlines

Two industry giants, American Airlines and China Southern Airlines, have created the foundation for a long-term relationship, with American Airlines’ commitment to make a US$200 million equity investment in China Southern Airlines. Currently, China Southern’s primary hub is located in Guangzhou (CAN) with the majority of its transpacific flights positioned there, while American flies to Beijing (PEK) and Shanghai (PVG) from its hubs in Chicago (ORD), Dallas Fort Worth (DFW) and Los Angeles (LAX).
The two carriers intend to start codesharing later this year in order to open up more destinations in China as well as in North and South America. American customers will be able to access nearly 40 destinations beyond Beijing and more than 30 destinations beyond Shanghai. China Southern customers will now have access to approaching 80 destinations beyond LAX, San Francisco (SFO), and New York’s Kennedy Airport (JFK) in North and South America.
According to Robert Isom, President American Airlines, “China Southern’s extensive network within China touches developing and thriving markets that only a Chinese carrier can reach and they have a reputation and record of excellence. We are two of the biggest carriers in the world and our networks are highly complementary, with the potential to offer China Southern and American customers an unmatched range of destinations in two critical markets for business and leisure travelers. This investment will allow us to build a relationship that will benefit our teams, the communities we serve and the millions of customers around the globe who travel with us each day.”
Currently, American provides a daily service from DFW to Hong Kong (HKG), PEK and PVG; LAX to HKG and PVG; and ORD to PEK and PVG. All flights to PEK and PVG are on Boeing 787-8 Dreamliners, while its HKG flights are on Boeing 777-300s.