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Air China Limited and Air Canada will be cooperating with each other in sales, marketing and airport service operations for all bilateral flights, according to a report from Reuters.
The two flag carriers and Star Alliance members signed on Saturday a memorandum of understanding setting out the main principles for a comprehensive joint venture providing for an enhanced partnership on routes between Canada and China. This will stimulate traffic growth between the two countries, according to their joint press statement.
Song Zhiyong, the president of China's national flag carrier, said that the air traffic volume between China and Canada has been growing by around 11 percent annually in the past five years, and that the growth rate is expected to continue rising as per the International Air Transport Association.
At present, Air China operates 11 round-trip flights to Toronto per week, while Air Canada operates 28 round-trip flights to China, mostly to Beijing and Shanghai.
Air China offers its customers codeshare flights operated by Air Canada between Vancouver and six Canadian cities (Edmonton, Calgary, Winnipeg, Toronto, Ottawa and Montreal), while Air Canada offers its customers codeshare flights operated by Air China between Beijing and six cities in China (Guangzhou, Chongqing, Chengdu, Shenyang, Wuhan and Xi'an).
Song on Saturday also said that working cooperatively with Air Canada will allow the companies to provide more travel options and benefits for customers traveling between China and Canada while reducing travel times through a more streamlined travel experience.
"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," said Song.
For his part, Calin Rovinescu, President and Chief Executive Officer of Air Canada, added that the two companies will benefit from the revenue-sharing venture as well as their customers through a simplified travel experience and loyalty rewards.
"By deepening our cooperation in the areas of scheduling and sales management, the carriers will be better able to serve customers by offering more travel options," said Rovinescu.
