American Airlines has agreed to pay about 200 million dollars for a stake in China's largest state-owned carrier, according to an announcement Tuesday through the Hong Kong stock exchange. American Airlines will own 2.76% of China Southern Airlines' shares if the transaction receives regulatory approval. 
The two companies also seek to cooperate in areas such as code-sharing, sales, passenger loyalty programs and sharing of airport facilities, according to the announcement.
Through its "strategic cooperation" with American Airlines, China Southern Airlines aims to "improve its corporate governance, further strengthen the management and enhance its internationalization" as well as "increase its competitiveness and influence in the global aviation market," the announcement said.
American Airlines is pursuing access to China's rapidly growing travel market. Chinese domestic air travel spending grew by 10.6% in 2015, compared to a 1.7% increase in the American market, according to the International Air Transport Association.
Delta Airlines in 2015 paid 450 million dollars for a 3.55% stake in China Eastern Airlines, another major state-owned carrier. China Southern Airlines has a fleet of 702 passenger and cargo aircraft, the largest in Asia, according to the company.

Source: QNA