July 28, 2017 / 1:14 AM / 2 years ago

China Eastern buys 10 pct Air France KLM stake to boost European presence

SINGAPORE, July 28 (Reuters) - China Eastern Airlines Corp Ltd said on Friday it would buy a 10 percent stake in European carrier Air France KLM SA and form a strategic partnership to improve its presence in the China-Europe market.

The 375 million euro ($438 million) investment in Air France KLM is compatible with China’s “One Belt, One Road” trade initiative, the Shanghai-based airline said in a statement.

“The parties will work together to build the China-Europe main routes market,” China Eastern said.

Air France KLM said in a statement that the alliance would give it a European leadership position in Shanghai, the main business travel market in China.

Delta Air Lines, which holds a 3.2 percent stake in China Eastern is also buying a 10 percent stake in Air France KLM.

All three airlines are members of the SkyTeam alliance. ($1 = 0.8564 euros) (Reporting by Jamie Freed; Editing by Richard Pullin)

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