Air New Zealand said it will begin a code-sharing program with Air China from July 1 in a bid to capture a larger share of the growing Chinese market ahead of the Beijing Olympics, according to AP.

New Zealand's national carrier said Air China will code-share on Air New Zealand flights between Shanghai and Auckland and on some flights between Australia and New Zealand.

In return, Air New Zealand will code-share on Air China's international services between China and Australia.

"This announcement is a sign of our commitment to the China/New Zealand market and positions the airline to take advantage of the Beijing Olympics in 2008," said Ed Sims, general manager of the international operations of the Air New Zealand Group.

Demand for flights to Shanghai is continuing to grow and Air New Zealand will increase its service to the city to five flights a week from three in October, Sims said.