American Airlines pays USD 200 million to acquire stake in China Southern Airlines

American Airlines is set to pay USD 200 million for acquiring stake in China Southern Airlines, one of the country's three major state-owned carriers, and expand commercial cooperation.

China Southern Airlines said in an announcement Tuesday through the Hong Kong stock exchange the purchase will represent 2.76 per cent of its shares.

China Southern said the purchase requires regulatory approval. It said details of closer cooperation have yet to be worked out but might include code-sharing, sales, passenger loyalty programs and sharing airport facilities.