Denies American's Request To Add Chicago Stopover

ANN REALTIME REPORTING 01.09.07 1300 EST: The US Department of Transportation (DOT) has spoken. On Tuesday, the agency proposed to award United Airlines the right to operate a new daily flight between the United States and China, allowing the airline to inaugurate new non-stop service between Washington Dulles International Airport and Beijing's China Peking Capital Airport beginning March 25 if the tentative decision becomes final.

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 US Transportation Secretary Mary E. Peters. "As difficult as the final choice will be, ultimately the goal is to do everything in our power to expand service, destinations and frequencies between the United States and China."

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 US city that currently does not have nonstop US-China service, the Department said. In addition, the tentative decision noted that United's service would provide the greatest capacity, offering over 253,000 seats annually in the US-China market.

Interested parties have 14 days to file objections showing why today's tentative decision should not be made final. If objections are filed, answers to objections are due seven days afterward. The Department then will review comments and issue a final decision.

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.

As Aero-News reported, near the end of the selection process American sought to change its proposal to add a stop in Chicago before continuing to Beijing. On Tueday, the DOT 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.

"We are naturally disappointed that American Airlines did not win the route, and we still believe their application is strong," said Jeff Fegan, CEO of DFW International Airport. "Trade between China and North Texas continues to grow and this region needs this service in the future. We will continue to work with American to explore new international routes from DFW and hope to play an instrumental role in the upcoming bilateral talks between the US and China."

The Department evaluates US air carrier proposals for new service between the two countries as part of a US-China aviation agreement signed in July 2004 that called for a total of 195 new weekly flights phased in over a six-year period.

FMI: www.dot.gov, www.united.com, www.aa.com