China Eastern Airlines takes 10% shares of Air France-KLM
Shanghai-based China Eastern Airlines is ready to buy additional shares in Air France-KLM. The Chinese ‘Big-Three’ airline is looking to expand its partnership with Air France-KLM to contribute to the European airline’s one billion euro ($1.2 billion) share issue. In a statement released on Monday, Air France-KLM said that both airline groups have decided to extend their partnership scope.
Heavily backed by the French government who will take their ownership stake in the Franco-Dutch airline to just under 30%, China Eastern Airlines will invest as much as 168 million euros in taking its 8.8% stake up to 10%. The Dutch government, which currently owns around 14% of the airlines, will see its ownership share dilute to just over 9%.
Likewise, American carrier Delta Air Lines who was at parity with China Eastern Airlines on 8.8%, will see its ownership decrease as it is not allowed to participate in the sale after receiving COVID-19 relief from the United States government.