Jan. 23, 2007 (China Knowledge) – Air China said that it plans to reinforce ties with United Airlines this year to reverse losses on Sino-U.S. routes.

United recently won approval from the US Department of Transportation to operate a new nonstop flight from Beijing to Washington, a route that is estimated to be worth US$200 million a year. Aiming to capitalize on this new deal, Air China wants to cooperate with United through codeshares and other efforts.

United had also express its intent to expand its cooperation with Air China through “codeshare or co-marketing in the future”.

Should Air China combine with United, the biggest carrier on the Sino-US route, both carriers will have a combined market share of more than 70%.

Air China and United have been involved in a strategic partnership since 2004.

Like its domestic counterparts, Air China has been suffering losses on Sino-US routes as a result of appreciation of the RMB and a weaker brand compared with their formidable U.S. rivals.