The Lufthansa Group and Air China will begin a commercial
joint venture next year on all connections between Europe and China.
Pending regulatory approval of an agreement signed in
Beijing on Tuesday, Lufthansa and subsidiaries Austrian Airlines and Swiss
International Air Lines, will expand their codesharing with Air China to grow
and better coordinate their networks. When the summer 2017 flight timetable
begins, codesharing will cover Air China on routes in Munich, Zurich, Frankfurt
and Vienna, and the Lufthansa carriers will codeshare on Air China's domestic
routes. The carriers, both Star Alliance members, plan to add more codesharing
destinations soon.
The joint venture has been in the works for a few years,
beginning with a memorandum
of understanding in July 2014.
Air China chairman Cai Jianjiang called the agreement
"another major step of Air China's globalization strategy." He added:
"We will further expand network coverage in China and Europe, enhance the
flight connections in beyond markets and optimize flight schedules, enabling us
to bring more and flexible flight choices, favorable fare products and seamless
travel experiences."
Additionally, the joint venture will allow the carriers
"to offer common fares" and "modify corporate programs to
improve the products available to corporate customers," according to the
carriers. They also will better connect the carriers' frequent-flyer programs.
The agreement is Lufthansa's third joint venture
in Asia, following a partnership with ANA
that began in 2013 and one with Singapore Airlines signed in November 2015.