Air China, Air Canada to form JV

The joint venture is expected to come into effect by the end of 2015.

Air Canada Air China Calin Rovinescu joint venture Song Zhiyong

Air Canada and Air China have concluded a memorandum of understanding setting out the main principles for a comprehensive revenue sharing joint venture providing for an enhanced partnership on routes between Canada and China. The JV will provide for enhanced cooperation between the two carriers in the areas of sales, marketing and airport operations, as well as generate additional service and pricing benefits for consumers travelling between the two countries.

Subject to Air Canada and Air China making the necessary filings, obtaining competition and other regulatory approvals and finalising documentation, the JV 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,” said Song Zhiyong, president and executive director of Air China Limited. “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.”

“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. The joint venture will provide customers of both carriers additional travel options through the expansion of codeshare flights to additional airports in both carriers’ domestic networks as network growth is a core principle of the joint venture,” said Calin Rovinescu, president and chief executive officer of Air Canada.