CHINA / National
Airlines in dogfight over China route
(AFP)
Updated: 2006-11-01 15:37
WASHINGTON - Four US airlines have made their final arguments in a
dogfight over the lucrative rights for a route to China that will be
awarded by the US government by the end of 2006.
The US and Chinese governments each will be awarding rights to a local
carrier for seven flights a week connecting the two countries, under a
2004 aviation agreement, US Transportation Department spokesman Bill
Mosley said.
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The four US carriers -- American, United, Continental and Northwest --
have been rallying support in an effort to win the rights to the
fast-growing China market, and filed final comments with US authorities
Tuesday.
The carriers have been launching websites, getting signatures on
petitions and drawing support from elected officials. Continental even
handed out fortune cookies in Washington in support of its bid.
"We continue to get letters of support from members of Congress, state
houses and citizens throughout the United States in support of our bid,"
said Mary Frances Fagan of American Airlines, which is proposing a route
linking Dallas-Fort Worth, Texas, and Beijing.
Fagan said the American proposal would serve a larger population base
than a competing offer from United to link Washington and Beijing.
Additionally, she said selecting American would "provide much-needed
competitive balance," because Northwest and United already have more
flights to China.
As a result of this, Fagan said, "The choice is between American and
Continental," which each have only one flight daily to China.
The other carriers however are equally adamant that they offer the most
advantages.
United's proposal is backed by a coalition of former senior government
officials and business groups, claiming it would bring the first nonstop
service linking the two capitals.
Jane Garvey, a former Federal Aviation Administration chief who is
co-chair of the Capital-to-Capital Coalition, stated, "United's proposal
offers not only the largest number of seats, it is clearly the proposal
that offers the greatest benefit to the critical relationship between the
US and China."
Northwest spokesman Dean Breest said the carrier's proposed
Detroit-Shanghai service has garnered the most public support with more
than 170,000 people having signed petitions for the route.
"Based on the evidence of record, it is clear that the selection of
Northwest for Detroit-Shanghai nonstop service will establish the largest
and most effective hub gateway to China -- creating the most significant
benefits for US-China passengers throughout the entire eastern United
States," Northwest said in its filing with the Department.
Additionally, Breest said the Northwest plan would serve more passengers
-- some 214,000 in the first year -- and have the shortest nonstop flight
to China over a polar air route.
"The Detroit-Shanghai proposal maximizes the public benefits," he said.
Continental argues that its bid for a route linking Newark, New Jersey --
just outside New York -- and Shanghai is superior and has wide support
from business groups.
Continental spokeswoman Mary Clark said the proposal -- which would
include a leg from Cleveland to Newark -- makes the most sense because it
would serve the most populous area.
"It's five times that of Dallas, twice that of Detroit and 50 percent
larger than Washington," Clark said.
She added that United "already has routes to China" and could move one of
its flights to Washington (from Chicago or San Francisco) "if they really
wanted to."
The stakes are high with US-China economic ties accelerating.
An American Express business travel survey found corporations in China
spent US$7.41 billion on air travel in 2005, making China the
fourth-biggest business travel market in the world.
Although most observers expect a single carrier to win the rights, Mosley
said it is possible the seven weekly flights could be divided among two
or more airlines.
The spokesman said he expects a DOT decision "as soon as possible" after
the proposals are analyzed. Service would start in March 2007.
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