North American aviation grows closer to China: Air Canada-Air China JV, US liberalises China visas

Air Canada and Air China expect to implement by the end of 2015 a revenue-sharing joint-venture between Canada and China. This will be Air Canada's first Asian JV after abandoning proposed JVs with Asiana as well as ANA/United. This will also be Air China's first North American JV. China is Air Canada's second-largest market based on capacity and is significantly larger than Air Canada's exposure in Japan, unlike with Air Canada's peers in the US.

Canada is less important for Air China, at only Air China's 11th largest market. Air China's sole Canadian service is a one or two daily flight (depending on the season) between Beijing and Vancouver, although Air China is reportedly considering a Beijing-Montreal service.

The JV should help Air Canada secure slots at Beijing airport, where it planned to add extra services to Toronto and Vancouver but had to cancel due to unfavourable slot timings. Meanwhile the US and China have announced an expanded visa programme that should give oxygen to the already fast-growing US-China market.