The joint venture is expected to come into effect by the end of 2015 and will generate additional services and pricing benefits for consumers travelling between the two countries.
The alliance would also provide enhanced cooperation between the two carriers in terms 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 Cooperation (APEC) member nations.
Currently, Air China offers its customers codeshare flights operated by Air Canada between Vancouver and six Canadian cities (Edmonton, Calgary, Winnipeg, Toronto, Ottawa and Montreal) and 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)
"Working cooperatively with our partner Air Canada, we will be able to provide more travel options and benefits for customers travelling between China and Canada while reducing travel times through a more streamlined travel experience," said Song Zhiyong, President and Executive Director of Air China Limited.
Currently, Air China operates up to 11 flights per week between Beijing and Vancouver, and Air Canada operates up to 28 flights per week between Canada and China between Toronto and Vancouver to Beijing and Shanghai.
Next year’s Routes Asia Forum will take place in Kunming, Yunnan, China between March 15 – 17, 2015. Find out all about the event here.
“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," Song Zhiyong added.
"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.
Meanwhile, elsewhere in North America, the US Government has signed an agreement with China to extend visas for short-term business travellers, tourists and students.
U.S. and Chinese citizens who regularly travel back and forth between the U.S. and China will benefit from the longer validity by not having to apply and pay the application fee every year.
The agreement will extend short-term tourist and business visas between the two countries from one to 10 years. United Airlines has applauded the new agreement, saying that it will support anything that will simplify travel and remove obstacles for its customers.
United Airlines Chairman, President and CEO Jeff Smisek said: "China is a fast-growing economy and this agreement will open up travel that will drive economic benefits in the U.S. We urge continued work with other countries to further remove burdensome restrictions on travel."
United provides frequent service to mainland China points of Beijing, Chengdu and Shanghai which can benefit from the new visa policy. In addition, United provides multiple daily flights to Hong Kong from the U.S.
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