Air Canada (AC, Montréal Trudeau) and Air China (CA, Beijing Capital) have announced they will expand their existing strategic cooperation agreement ahead of the implementation of a joint-venture partnership.

The Star Alliance members said in a statement that as a step toward finalizing their planned joint-venture, they will increase their codesharing cooperation. As such, Air China will place its "CA" flightcode on Air Canada's new daily Montréal Trudeau-Shanghai Pudong flight, as well as Air Canada's flights from Vancouver to Victoria, Kelowna, Saskatoon, and Regina.

In return, Air Canada will place its "AC" code on Air China's flights between Beijing and Zhengzhou, Xiamen, Shenzhen and Nanjing as well as the latter's flight between Montreal-Havana International, Cuba. The expanded codeshare cooperation is planned to come into effect in April 2018, subject to regulatory and government approvals.

Both carriers have also implemented an expanded lounge agreement.

"As members of Star Alliance, we are pleased to promote our growing cooperation with the first-ever joint frequent flyer promotion with Air China for our customers," Calin Rovinescu, President and Chief Executive Officer of Air Canada, said. "Now, we are focused on finalizing a definitive joint venture agreement that will deepen our cooperation in scheduling and sales to offer customers of both airlines additional travel options throughout our respective networks."

Currently, Air Canada codeshares on Air China's flights operated between Beijing and Guangzhou, Chengdu Shuangliu, Chongqing, Wuhan, Xi'an Xianyang and Shenyang Taoxian International, between Montreal and Beijing, and between Calgary and Beijing. Similarly, Air China offers its customers codeshare flights operated by Air Canada between Vancouver and Calgary, Edmonton International, Toronto, Montreal, Ottawa International and Winnipeg International, and between Montreal and Ottawa, Toronto and Winnipeg, as well as Vancouver and Toronto to and from Beijing and Shanghai.

Air Canada operates up to a total of thirty-five flights per week between Canada and China, from Toronto, Vancouver and Montreal serving Beijing and Shanghai. Air China operates up to eleven flights per week between China and Canada, from Beijing serving Vancouver and Montreal.