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Air China, Air Canada form strategic alliance

BEIJING, China and MONTREAL, Que.–Air Canada and Air China Limited announced they are embarking on a comprehensive revenue sharing joint venture providing for an enhanced partnership on routes between Canada and China which aims to stimulate traffic growth between the two countries.

The joint venture will generate additional service and pricing benefits for consumers travelling between the two countries as well as provide for enhanced cooperation between the two carriers in the areas of sales, marketing and airport operations. The announcement was made in Beijing during an official visit to China by Canadian Prime Minister Stephen Harper, prior to a meeting of Asia-Pacific Economic Co-operation (APEC) member nations.

 Subject to Air Canada and Air China making the necessary filings, obtaining competition and other regulatory approvals and finalizing documentation, the joint venture is expected to come into effect by the end of 2015.

“This joint venture between Air China and Air Canada will provide many benefits and commercial synergies on the important and growing market for travel and trade between Canada and China. Over the past five years the Canada-China air travel market has grown on average by almost 11 per cent annually and this trend is expected to remain strong according to airline industry trade group IATA,”  said Song Zhiyong, President and Executive Director of Air China Limited. 

“As members of Star Alliance, Air Canada and Air China will benefit from a revenue sharing joint venture, as have our customers through a simplified travel experience and loyalty rewards,” said Calin Rovinescu, President and Chief Executive Officer of Air Canada, in Beijing to sign the memorandum of understanding. 

Air Canada operates up to a total of 28 flights per week between Canada and China, from Toronto and Vancouver to and from Beijing and Shanghai. Air China operates up to 11 flights per week between Beijing and Vancouver.

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