Air China and Air Canada Expand Strategic Cooperation, Strengthening Canada-China Network in Advance of Full Joint Venture

• Expanded codeshare services to more destinations in Canada and China
• Increased lounge access for eligible customers
• First joint frequent flyer promotion to celebrate 2018 Canada-China Year of Tourism

BEIJING and MONTREAL, Dec. 12, 2017 /CNW Telbec/ - Air Canada and Air China Limited today announced that the airlines will expand their mutual codeshare services and lounge agreement in time for the 2018 Canada-China Year of Tourism, recognizing the importance of tourism and trade between the two countries. As Air Canada and Air China work toward finalizing their planned joint venture, while satisfying both countries' applicable regulatory conditions, the two Star Alliance carriers also launched their first joint frequent flyer promotion to offer the carriers' respective Aeroplan and PhoenixMiles members up to 30 per cent bonus miles effective December 15, 2017 for eligible travel between April 1, 2018 and June 15, 2018 on all flights between Canada and China operated by Air China and Air Canada.

As a result of the codeshare expansion, Air China will place its code on Air Canada's new daily Montreal-Shanghai flight, as well as Air Canada's flights from Vancouver to Victoria, Kelowna, Saskatoon, and Regina.

In addition, Air Canada will place its code on Air China's flights between Beijing and Zhengzhou, Xiamen, Shenzhen and Nanjing as well as Air China's flight between Montreal-Havana, 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. In addition to Star Gold customers, all Air China First and Business class customers will now have access to Air Canada's recently upgraded International Maple Leaf Lounges featuring enhanced food and beverage offerings at Montreal and Vancouver airports. Air Canada's eligible customers will continue to enjoy access to Air China's lounges in Beijing, Shanghai and other airports throughout China.

"Air China and Air Canada have built the foundation of a profound cooperation. Both parties will deepen cooperation on code-sharing, lounge services and frequent flyer programs and will put more efforts into the planned joint venture project," said Zhiyong Song, President of Air China Limited. "By offering a wider range of products and quality services, Air China and Air Canada will bring more convenience and options for our customers."

"Air Canada and Air China have worked hard over the past several years implementing new routes between Canada and China. In fact, the Canada-China air travel market has grown on average by almost 14 per cent annually over the past six years and this trend is expected to remain strong according to airline industry trade group IATA," said Calin Rovinescu, President and Chief Executive Officer of Air Canada, in Beijing. "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. 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 offers its customers codeshare flights operated by Air China between Beijing and Guangzhou, Chengdu, Chongqing, Wuhan, Xi'an and Shenyang, and between Montreal and Beijing, and between Vancouver and Beijing. Similarly, Air China offers its customers codeshare flights operated by Air Canada between Vancouver and Calgary, Edmonton, Toronto, Montreal, Ottawa and Winnipeg, 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 35 flights per week between Canada and China, from Toronto, Vancouver and Montreal serving Beijing and Shanghai. Air China operates up to 11 flights per week between China and Canada, from Beijing serving Vancouver and Montreal.

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 of June 30, 2017, the Group operated a fleet of 628 aircraft with an average age of 6.53 years, while the Company operated a fleet of 385 aircraft with an average age of 6.57 years. Passenger traffic routes have reached 408, including 106 international, 15 regional and 287 domestic routes. The Company's network covered 39 countries and regions globally and 184 cities, including 66 international, 3 regional and 115 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 200 airports on six continents.  Canada's flag carrier is among the 20 largest airlines in the world and in 2016 served close to 45 million customers.  Air Canada provides scheduled passenger service directly to 64 airports in Canada, 60 in the United States and 98 in Europe, the Middle East, Africa, Asia, Australia, the Caribbean, Mexico, Central America and South America. Air Canada is a founding member of Star Alliance. 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, which also named Air Canada the 2017 Best Airline in North America.  For more information, please visit: www.aircanada.com/media, follow @AirCanada on Twitter and join Air Canada on Facebook.

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.

SOURCE Air Canada

Media contacts: Air Canada: Isabelle Arthur (Montréal), [email protected], [phone]; Peter Fitzpatrick (Toronto), [email protected], [phone]; Angela Mah (Vancouver), [email protected], [phone], www.aircanada.com/media; Air China: Guo Linying (Beijing), [email protected], [phone]

Related Links

www.aircanada.com