China Eastern Airlines is to start regular scheduled services to Shanghai from Auckland over summer in a challenge to Air New Zealand which plans to use its new Dreamliners on the route.
The China Eastern service will begin in December initially with four flights a week which will increase to seven flights a week in January next year. The airline, one of the world's biggest, will use an Airbus A330-200.
Auckland Airport's acting general manager aeronautical commercial Charles Spillane said the service would add an extra 47,000 seats on the route, contributing an estimated $54 million to the New Zealand economy.
"Shanghai is an incredibly dynamic city and represents a huge growth opportunity for the New Zealand market," said Spillane.
"When we look at the year ending June 2014, we saw almost 36,000 visitors arriving from Shanghai, an increase of 20 per cent when compared to the same period the year before."
Air New Zealand was the only direct carrier on the Shanghai to Auckland route at the moment.
"With the introduction of China Eastern Airlines, we are expecting double digit growth from the Shanghai market during the peak New Zealand summer period. Not only will this new seasonal service deliver more capacity and choice for travellers but it will also stimulate demand by diversifying the product offering on this route."
China Eastern tested the market last summer with two charter flights on the route during the Chinese Year earlier this year, said the airline's general manager Oceania, Kathy Zhang.
"That success has played a crucial role in our decision to offer this new seasonal operation. New Zealand is one of the most popular destinations for Chinese travellers and we are confident we will experience strong demand for our new service," she said.
China is New Zealand's second largest tourist market and changes to travel laws last October had encouraged bigger spending tourists to come here.
China Eastern Airlines is headquartered in Shanghai and is one of the three major airlines in mainland China. It flies a fleet of more than 500 long-haul and short-haul aircraft and carries nearly 80 million travellers annually.
It ranks among the world's top five airlines in terms of passenger volume.