China Eastern buys 10% stake in Air France KLM

SHANGHAI - China Eastern Airlines announced Friday it will invest 375 million euros ($438 million) to purchase a 10-percent stake of the European carrier Air France KLM to expand its European market.

An overseas affiliate of the Shanghai-based airline has signed two agreements with Air France KLM about the purchase and future market cooperation. It will also appoint a representative to the board of directors of the European airline.

The purchase will be the largest strategic investment for the Chinese airline.

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

All three airlines are members of the SkyTeam Alliance.

The investment will help the three parties forge a closer global strategic partnership and enable them provide better services to customers, said Liu Shaoyong, chairman of China Eastern.