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United Gets New Daily U.S.-China Flight

January 10, 2007

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Just in time for the 2008 Summer Olympics in Beijing, the U.S. Department of Transportation (DOT) has tentatively awarded United Airlines the right to operate a new daily flight between the United States and China.

United's new non-stop service between Washington Dulles International Airport and Beijing's China Peking Capital Airport will begin March 25 if the tentative decision becomes final.

The decision capped a fierce five-month lobbying and public relations fight loaded with economic impact studies and political symbolism. United had flooded Washington airways with commercials extolling the economic benefits the new flight would bring.

"We applaud the Department of Transportation on their fair and thorough process and for putting the interest of the nation and the traveling public first," said Glenn Tilton, United chairman, president and CEO.

The Department assessed the bids from four airlines for the chance to operate seven weekly flights between the two countries based on criteria such as which applicant would serve the most customers and provide the best service to the traveling public.

"It's not every day we get the opportunity to make flying more convenient, support airlines and boost the economy by proposing to make it easier to fly between the world's two most dynamic economies," said U.S. Transportation Secretary Mary E. Peters.

In its tentative decision, the Department found that United's Washington-Beijing proposal had the potential to benefit the greatest number of passengers. More people travel to China from the Washington metro area than from any other U.S. city that currently does not have nonstop U.S.-China service, the Department said.

The tentative decision also noted that United's service would provide the greatest capacity, offering over 253,000 seats annually in the U.S.-China market.

Also applying for the daily service were American Airlines, which sought to fly between Dallas/Fort Worth and Beijing; Continental Airlines, which applied for service between Newark, NJ and Shanghai; and Northwest Airlines, which applied for Detroit-Shanghai service.

"Our application would have brought new service to an underserved area of the country and offered enhanced competition in the ever-growing China marketplace," said Will Ris, American's senior vice president of government affairs, the Dallas Morning News reported. He said American would reapply for China service when the Transportation Department is ready to award the next route.

"The record showed that Northwest's proposal would have benefited the most passengers, served the most U.S. cities, and provided the quickest and most efficient routings to China," Northwest said.

The carrier added that it hoped DOT will negotiate with China to give additional airlines rights to fly new routes.

Toward the end of the selection proceeding, American sought to change its proposal to add a stop in Chicago before continuing to Beijing. The Department today denied American's motion, noting that any amendment this late in the proceeding would significantly delay the start of new service, while allowing American to withdraw its application as requested.

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