BEIJING and MONTREAL,
Nov. 8, 2014 /PRNewswire/ -- Air
Canada and Air China Limited today announced that the airlines 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 which will 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.
"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. "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."
"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. "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."
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).
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.
About Air China
Air China Limited (Air China) is the national flag carrier of
China and a leading provider
of
passenger, air cargo and airline-related services and products in
China. Its operational
headquarters is in Beijing, a
major domestic and international hub in China. It also provides airline-related
services, including aircraft maintenance, ground handling services
in Beijing, Chengdu, and other locations. As at
June 30, 2014, the Company operated a
fleet of 316 aircraft with an average age of 6.28 years (excluding
aircraft under wet leases). Passenger traffic routes have reached
to 323 routes, including 79 international, 15 regional and 229
domestic routes. The Company's network covered 32 countries and
regions globally and 162 cities, including 53 international, three
regional and 106 domestic cities. Air China was listed on Hong Kong Stock Exchange
and London Stock Exchange on December 15,
2004 under codes 00753 and AIRC respectively. On
August 18, 2006, Air China was listed
on Shanghai Stock Exchange under code 601111. For further details,
please visit Air China's website: www.airchina.com.cn.
About Air Canada
Air Canada is Canada's largest domestic and international
airline serving more than 180 destinations on five continents.
Canada's flag carrier is among the
20 largest airlines in the world and in 2013 served more than 35
million customers. Air Canada
provides scheduled passenger service directly to 60 Canadian
cities, 49 destinations in the United
States and 73 cities in Europe, the Middle
East, Asia, Australia, the Caribbean, Mexico and South
America. Air Canada is a
founding member of Star Alliance,
the world's most comprehensive air transportation network serving
1,316 airports in 192 countries. Air Canada is the only international network
carrier in North America to
receive a Four-Star ranking according to independent U.K. research
firm Skytrax that ranked Air Canada in a worldwide survey of more
than 18 million airline passengers as Best Airline in North America in 2014 for the fifth
consecutive year. For more information, please visit:
www.aircanada.com.
Caution Regarding Forward-Looking Information
Air Canada's public
communications may include forward-looking statements within the
meaning of applicable securities laws. Forward-looking statements,
by their nature, are based on assumptions and are subject to
important risks and uncertainties. Forward-looking statements
cannot be relied upon due to, amongst other things, changing
external events and general uncertainties of the business. Actual
results may differ materially from results indicated in
forward-looking statements due to a number of factors, including
without limitation, industry, market, credit and economic
conditions, the ability to reduce operating costs and secure
financing, pension issues, energy prices, employee and labour
relations, currency exchange and interest rates, competition, war,
terrorist acts, epidemic diseases, environmental factors (including
weather systems and other natural phenomena, and factors arising
from man-made sources), insurance issues and costs, changes in
demand due to the seasonal nature of the business, supply issues,
changes in laws, regulatory developments or proceedings, pending
and future litigation and actions by third parties as well as the
factors identified throughout Air Canada's public disclosure file
available at www.sedar.com. Any forward-looking statements
contained in this news release represent Air Canada's expectations
as of the date of this news release and are subject to change after
such date. However, Air Canada disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required under applicable securities regulations.
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SOURCE Air China
