American Airlines Group Inc (NASDAQ:AAL) is taking a $200 million stake in China Southern Airlines Co Ltd (ADR) (NYSE:ZNH).

American Airlines Group Inc notes that its investment in China Southern Airlines Co Ltd (ADR) will start a beneficial relationship between the two. It points out that ZNH is the largest airline in the country and that it is the largest airline company in the world.

According to American Airlines Group Inc, the relationship with China Southern Airlines Co Ltd (ADR) will allow the two companies to compliment each other. ZNH offers flights to many locations in China that AAL doesn’t have access to. In turn, AAL has several flights from China to the United States.

American Airlines Group Inc says that it offers flights to Beijing and Shanghai from its hubs in Chicago, Dallas Fort Worth and Los Angeles. China Southern Airlines Co Ltd’s main hub is in Guangzhou and most of its transpacific flights come from there.

American Airlines Group Inc and China Southern Airlines Co Ltd (ADR) will start codeshare and interline agreements later this year. This will help passengers of both companies expand their options. This will also let customers book flights between the two companies on a single ticket and possibly earn AAdvantage Miles.

“We’re pleased to begin this relationship to better connect two of the world’s largest aviation markets and leading economies,” Wang Chang Shun, Chairman of China Southern Airlines Co Ltd (ADR), said in a statement. “Our cooperation has the possibility to create enormous benefits for our industry and customers around the world as we work to offer them more travel options and better value.”

AAL stock was up slightly and ZNH stock was down 3% as of noon Tuesday.