Shareholders at Air France-KLM have approved plans for fellow SkyTeam alliance members China Eastern Airlines and US major Delta Air Lines to each acquire 10% of the Franco-Dutch group.
On July 27, Air France-KLM, China Eastern, Atlanta-based Delta and UK-based long-haul carrier Virgin Atlantic detailed plans to strengthen their ties. Under the agreement, China Eastern and Delta are each taking a 10% stake in Air France-KLM, which will in turn acquire 31% of Virgin.
The Delta and China Eastern stakes, which will inject €751 million ($893 million) in Air France-KLM, were approved Sept. 4 by Air France-KLM shareholders.
The shareholders also approved board members from each of the new carriers. Bing Tang was named as China Eastern’s representative, while George Mattson will hold the Air France-KLM board position for Delta. The two appointments will take effect from the completion of the deal, for a four-year term.
“Our shareholders have largely approved the strategic step forward proposed to them. The partnerships to be finalized with China Eastern Airlines and Delta Airlines are an integral part of the Trust Together project,” Air France-KLM chairman Jean Marc Janaillac said.
He added the strategic partnerships are being formed to help Air France regain the offensive and improve its group’s financial performance.