Qantas and China Eastern Deepen Ties with JV

Qantas and China Eastern have signed a five-year agreement marking the start of a deeper level of commercial cooperation on flights between Australia and China.

The airlines will now submit an application for authorisation to Australian and Chinese regulators. Subject to regulatory approval, it is anticipated that the joint agreement will commence in mid-2015.

Under the agreement, the airlines hope to ultimately open up new routes between Australia and mainland China, such as between Brisbane and Perth to Shanghai.

A key benefit of the agreement will be the co-location of both carriers’ operations in Terminal 1 at Shanghai International Airport, which will cut transit times by about an hour, open up a better range of onward connections and provide more choice for customers.

Qantas CEO Alan Joyce said the airline was pleased to build on its existing codeshare relationship with China Eastern, which has been so successful with Qantas customers since 2008.

“We’re looking forward to working more closely with China Eastern to bring together our complementary networks and enhance the options for the increasing number of Qantas customers travelling to Shanghai and beyond,” said Mr Joyce. “Coordination means the opportunity to improve schedules and connection times, and to deliver improved products such as a joint lounge and streamlined check-in facilities in Shanghai. It will be a win for our customers and, by making it easier for Chinese travellers to visit Australia, a win for trade and tourism.”

China Eastern Chairman, Liu Shaoyong, said, “Australia is one of the most important tourist destinations and trade markets for China, and Qantas is the key partner for China Eastern in Australia. It’s important for us to strengthen the cooperation with Qantas to provide better, more convenient travel products for passengers between the two countries.”

Air services between Australia and China have been identified as critical to the ongoing development of strong economic ties between the two countries. China is now Australia's largest two-way trading partner in goods and services, its largest goods export destination and its largest source of merchandise imports. China is also Australia’s most valuable inbound tourism market – projected to contribute up to $9 billion annually to the Australian economy by 2020.