American Airlines Follows Delta's Footsteps in Partnering with Major Chinese Airline
To the bane of some Asian countries, the Chinese air travel market is on the upswing and set to become the largest air travel market on the planet over the next two decades. As such, American Airlines has decided to invest $200 million dollars to buy a stake in China Southern Airlines, becoming the second major American airline to do so recently.
This move is certainly financially driven, as the North American aviation market levels off in growth, but it's likely the move is driven as much by the "bullying" tactics of China, as noted a few weeks ago. The partnership between airlines will open up flight routes and times to American planes, while also providing China Southern with management expertise and experience.
+ Perhaps this global outlook by airlines is why Warren Buffett sees airline stocks as a worthy investment when others are thinking its leveling off and questioning the timing of Frontier's IPO (which may be valid since the budget airline doesn't have a global stake).