American Airlines and China Southern Airlines announced today that Dallas-Fort Worth-based American Airlines has agreed to invest $200 million US to purchase an equity stake in Guangzhou-based China Southern Airlines.

In what is being called a 'strategic relationship', this investment provides the foundation for a long-term relationship between American, the world’s largest airline, and China Southern, Asia’s largest airline by passenger volume.

“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,” said Robert Isom, president of American Airlines. “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.”

“We’re pleased to begin this relationship to better connect two of the world’s largest aviation markets and leading economies. Our cooperation has the possibility to create enormous benefits for our industry and customers around the world as we work to offer them more travel options and better value,” said China Southern Chairman Wang Chang Shun.

China Southern’s primary hub is Guangzhou (CAN) and they operate flights from there to points around the world, including North American cities Vancouver, Los Angeles and Chicago. American flies to Beijing and Shanghai from its hubs in Chicago, Dallas Fort Worth and Los Angeles.

The plan is for the carriers to offer codeshare and interline agreements later in 2017, giving the airlines’ customers access to many more destinations in China, as well as North and South America. When these agreements are implemented, American customers will be able to access nearly 40 destinations beyond Beijing and more than 30 destinations beyond Shanghai, while China Southern customers will gain access to almost 80 destinations in North and South America.

Participation of China Southern Airlines in the AAdvantage program, as well as possible membership in the oneworld alliance, is expected.

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