Flights Between China and U.S. to Double by 2012
May 25, 2007
Competition between commercial airlines for valuable trans-Pacific routes will surely intensify following an agreement on May 23 between China and the United States that will double the number of passenger flights between the two countries by 2012.
U.S. Transportation Secretary Mary E. Peters said the bilateral aviation agreement could stimulate US$5 billion in revenue for U.S. airlines over the next several years. As part of the deal, American air cargo companies will gain virtually unlimited access to China.
"We've achieved a breakthrough agreement that opens the way for more frequent, more affordable and convenient air service between China and the United States," Peters said on a conference call with reporters.
The accord was announced during high-level talks between the U.S. and China, led by U.S. Treasury Secretary Henry Paulson and China's Vice Premier Wu Yi.
U.S. carriers will be able to operate 23 daily roundtrip flights by 2012, up from 10 currently. The agreement also allows the U.S. to designate three additional airlines to fly to China - at least one of them designated for cargo, transportation officials said.
China will have the right to fly the same number of flights to the United States, Peters said, and can designate an unlimited number of airlines to operate those flights.
The deal also lifts limits on the number of cargo flights and cargo carriers serving the two countries by 2011. Peters said the two countries agreed to begin talks in 2010 on a so-called "open skies" agreement.
Competition among U.S. airlines for the flights, which one analyst estimated could be worth up to US$200 million in annual revenue, will be intense. Peters said the competition for previous routes "makes some Olympic events look tame by comparison."
Under the agreement, the United States can grant a new airline the right to fly to China and approve a new route this year.