Air China (CA, Beijing Capital) and Air Canada (AC, Montréal Trudeau) have concluded a Memorandum of Understanding setting out the main principles for a comprehensive revenue sharing joint-venture on flights between the two countries. The announcement was made in Beijing during Canadian Prime Minister Stephen Harper's official visit to China.

"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," a joint communique stated.

Subject to Air Canada and Air China making the necessary filings, obtaining competition and other regulatory approvals and finalizing documentation, the joint venture between the Star Alliance carriers is expected to come into effect by the end of 2015.

At present, Air Canada operates up to 28 flights per week from Toronto Pearson and Vancouver International to Beijing Capital and Shanghai Pudong while Air China operates up to 11 flights per week between Beijing and Vancouver. In addition, Air China codeshares on Air Canada's flights from Vancouver to Edmonton International, Calgary, Winnipeg International, Toronto, Ottawa International, and Montréal Trudeau, while Air Canada codeshares on Air China's flights from Beijing to Guangzhou, Chongqing, Chengdu Shuangliu, Shenyang Taoxian International, Wuhan, and Xi'an Xianyang.