Air Canada and Air China have signed a new partnership agreement saying that they are entering into a joint venture to boost traffic growth between Canada and China. The MoU was signed in Beijing during a recent official visit of the Canadian Prime Minister Stephen Harper to China. The joint venture between the two national carriers is expected to become effective by the end of 2015 after regulatory approvals.

Both Air China and Air Canada are members of Star Alliance, a leading global airline alliance. The agreement is likely to benefit passengers traveling between the two countries in terms of pricing and additional services. The two carriers will also be enhancing their cooperation in the areas of airport operations, marketing and sales.

The partnership pact will now enable Air China to place its flight code on Air Canada-operated flights to be conducted from Vancouver to Montreal, Ottawa, Toronto, Winnipeg, Calgary and Edmonton. Similarly, Air Canada will also be permitted to put its flight code on Air China-operated services from Beijing to Xi’an, Wuhan, Shenyang, Chengdu, Chongqing and Guangzhou.

Air Canada is presently operating up to 28 weekly services between China and Canada. The flights are being conducted from Vancouver and Toronto to/from Shanghai and Beijing. Air China is providing up to 11 flights services every week between Vancouver and Beijing.

Calin Rovinescu, President and CEO of Air Canada, said that the cooperation between Air Canada and Air China will enhance revenue earnings and offer a seamless travel experience to the customers of both the carriers.

According to a study, the air travel market between Canada and China has shown an appreciable growth on average by nearly 11 percent annually over the past five years. The trend is likely to remain strong in the future as well.