American-China Southern: That is the way to do it – if there is no other choice

American Airlines is seeking to increase its footprint in the China/USA market at the fastest possible speed with the lowest possible risk as it looks to close out a US$200m investment in China Southern Airlines to purchase around a 2% stake in the Chinese carrier, which will include a non-voting seat on the board of China Southern Airlines. This deal, is successful, will create a powerful alliance if it leads to a codeshare agreement between the two. American is following in the footsteps of Delta Air Lines and China Eastern Airlines’ 2015 deal where Delta paid US$450m for a 3.55%