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China Southern Airlines confirmed it will sell more than 270m shares worth HK$1.5bn ($200m) to American Airlines.
China Southern said in a filing to the Hong Kong stock exchange that the two airlines “may seek to increase cooperation in codesharing, transport sharing agreement, staff/experience sharing, sales, passenger loyalty program, and airport facilities sharing”.
Shares in China Southern Airlines hit a 15-month high yesterday of HK$5.49 after the carrier said it was in talks with American Airlines regarding a possible stake sale.
China Southern, the biggest airline in Asia by passengers carried, revealed on Monday that it was “in the negotiation of a possible strategic cooperation” with AA that could take the form of a share sale and other business cooperation.