Air China and US-based United Airlines announced yesterday they had reached a marketing alliance, including co-operation on code-sharing flights, frequent flyer programmes and shared airport lounges.

The new co-operation will take effect on October 31, when United's 14 weekly flights including daily Beijing-Chicago and Shanghai-San Francisco service will carry both United's and Air China's codes.

Code-sharing is a commercial agreement between two airlines that allows an airline to put its two-letter identification code on the flights of another airline as they appear in computerized reservation systems.

At the same time, Air China's 12 weekly flights, for Beijing and Los Angeles, three Beijing and New York and five Beijing San-Francisco, will be operating under the codes from both airlines.

In total, the two airlines will offer 26 non-stop code-sharing flights a week between China and the US.

"Our new marketing alliance with Air China will provide travellers between the two countries with more travel options and benefits," said Glenn F. Tilton, president of United.

He repeatedly used the term "tremendous" to describe the market potential for China's civil aviation sector.

"The new relationship will help expand United's worldwide network and access to China," said Tilton.

Air China finished code-sharing co-operation with US-based Northwest Airlines last year, and has been in talks with United Airlines since.

Under the agreement with Air China, United will extend its service from Beijing and Shanghai to five other cities via code-sharing flights operated by Air China carrying United's codes. The five cities are Guangzhou, Shenyang, Xi'an, Fuzhou and Shenzhen.

Air China will also expand its network to 14 US cities with code-sharing flights.

Li Jiaxiang, president of Air China, said co-operation with United is a key component of Air China's globalization strategic efforts. "So long as we can benefit from such co-operation, Air China will seek partnerships with all major world airlines," Li said.

(HK Edition 08/29/2003 page1)