Air China and Air Canada Ink Deal for Joint Venture
Air Canada and Air China announced plans for a joint venture on routes linking Canada and China.
The two airlines said Saturday they signed a memorandum of understanding that sets forth plans for a revenue sharing joint venture and an enhanced partnership on those routes. The agreement calls for cooperation in sales, marketing, and airport operations.
The announcement was timed to coincide with a state visit to China by Canadian Prime Minister Stephen Harper, and the two airlines said that they believe it will generate additional service and pricing benefits.
Finalization of the joint venture is subject to regulatory approval and government filings. It is expected to launch by the end of 2015.
Air China is the country’s flag carrier and has its main hub in Beijing. It operates a fleet of 316 aircraft and 323 routes, including 79 international ones. Air Canada is the country’s largest airline, with a fleet of 235 aircraft including Boeing 787 Dreamliners currently on order through 2017. Based in Montreal, the airline serves 182 destinations in North America, Europe, the Middle East, Asia, and elsewhere.
(Photo: Accura Media Group)