Air China and Germany's biggest airline Lufthansa are signing a joint venture contract on Tuesday in Beijing after more than two years of negotiations.

The contract will let the two airlines share revenues on certain routes by selling tickets for each others' flights. When Lufthansa signed the accord in principle in July 2014 the German carrier said it hoped the deal would improve its position in China, the world's fastest growing aviation market.

Analysts say such arrangements allow airlines to work together on routes and pricing while sidestepping foreign ownership rules that prevent them from merging.

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