Etihad Airways, China Eastern Airlines Sign Joint Venture Agreement — Update

By Pierre Bertrand

Etihad Airways and China Eastern Airlines have signed an agreement to form a joint venture allowing the companies to share revenues generated by selected routes.

A spokeswoman for the Abu Dhabi-based carrier, when approached by Dow Jones Newswires, said the agreement would also enable the companies to manage flight capacities and coordinate schedules, confirming information first reported by Reuters.

The agreement will additionally enable both airlines to combine and develop their networks including expanded options to cities like Shanghai, Beijing, Xi'an, and Kunming, as well as to the United Arab Emirates and other Middle Eastern and African destinations, Etihad said.

The deal is the first such joint venture agreement between a Middle Eastern and a Chinese airline, Etihad said.

Etihad said the formation of the joint venture is subject to governmental approvals and that it wouldn't involve an equity investment.

"Etihad and China Eastern Airlines will implement the joint venture cooperation in early 2025 when both teams secure all necessary regulatory clearances," Etihad said.

It added that the JV will enable passengers to earn frequent flyer points and redeem rewards when using either airline from the last quarter of this year.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

June 05, 2024 10:14 ET (14:14 GMT)

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