Air New Zealand (NZ, Auckland International) has signed a Statement of Intent with Air China (CA, Beijing Capital) paving the way for a strategic alliance on services between China and New Zealand.

Announced during Chinese President Xi Jinping’s state visit to New Zealand this week, the proposed alliance will see Air China operate a new direct Beijing Capital to Auckland International service in addition to Air New Zealand’s existing Shanghai Pudong to Auckland service.

“China is New Zealand’s second largest inbound visitor market and we expect interest in visiting New Zealand to continue to grow amongst Chinese travellers,” Air New Zealand CEO Christopher Luxon said. “However, China remains a challenging market for us to operate to. Working with a strong, well respected home market carrier like Air China would give us a huge opportunity to convert this potential growth, while jointly offering the additional capacity to support it.”

The airlines will now pursue further discussions with a view to reaching an agreement early next year following which regulatory approval can be sought.