China Eastern Airlines (MU, Shanghai Hongqiao) has outlined the terms of the marketing agreement it has entered into with Air France-KLM Royal Dutch Airlines as part of its purchase of a 10% stake in the Franco-Dutch carrier.

In a filing to the Shanghai Stock Exchange, China Eastern said the parties will work together to build up their presence on key China-Europe routes. China Eastern will use Air France-KLM's strong global connections to plug gaps in its African, South American, and Caribbean market coverage.

The carriers will also push to improve loyalty-programme cooperation as well as improved cross-use of airport service resources and facilities.

They will also seek to shorten connecting times. Customers will also be offered through check-in thus providing a more seamless passenger travel and luggage transfer system.

Other areas of cooperation include pricing as well as IT and MRO services.

The agreement will be valid for an initial fifteen years from the date of the signing of the final accord.

For its part, Air France-KLM is using the proceeds from Delta Air Lines (DL, Atlanta Hartsfield Jackson) and China Eastern's purchase of separate 10% stakes for EUR375 million (USD437.1 million) each, announced last week, to pay off its debts as well as finance its purchase of a 31% stake in Virgin Atlantic (VS, London Heathrow) valued at GBP220 million (USD287.6 million).