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Old February 20th, 2005, 02:31 AM   #221
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China industry: Flights between China and the US to become more frequent
7 January 2005
Economist Intelligence Unit - ViewsWire

The number of flights between the US and China will expand significantly in March, forcing Chinese airlines to compete against their much larger US competitors on US-China routes

Under a landmark agreement signed in late July last year by Norman Mineta, US transportation secretary, and Yang Yuanyuan, minister of the Civil Aviation Administration of China (CAAC), the number of carriers allowed to fly between the two countries is to double, and the number of weekly flights to increase fivefold, by 2010. Expansion started on August 1st last year, with a second major round scheduled for March. Liberalisation will continue on an incremental basis through the remainder of the decade, when, according to Mr Mineta, the countries will have reached bilateral co-operation just shy of an “open skies agreement”.

The agreement has been as well-received by US airlines as it has been criticised by their Chinese counterparts. The reasons are obvious. US airlines, which make significantly more on international routes than on domestic ones, are eager and ready to expand. In contrast, Chinese airlines are losing money on international services and, with much smaller fleets (and smaller planes), will anyway find it difficult to grow their services. Chinese capacity -- of everything from planes to runways to cargo handling facilities -- lags far behind that in the US. China has fewer than two dozen cargo planes capable of transpacific routes, for example.

The markets reacted accordingly. Following the announcement of the bilateral air services agreement, US share prices of major carriers with services to China, including United Airlines and United Parcel Service (UPS), rose significantly, while share prices of China Southern and China Eastern, the only listed Chinese airlines offering flights to the US, plummeted. Analysts expected then-unlisted flag carrier Air China, which operates nearly half (or 22) of all China-US flights, to suffer the most.

Fast take-off

Under the July agreement, each country will be able to approve a total of nine passenger and cargo carriers to operate 249 flights between China and the US each week. Under a previous agreement, signed in 1999, the countries were limited to just four carriers and 54 flights each. The 2004 deal will add 111 all-cargo and 84 passenger flights, allow carriers to fly to any destination in the other country, and remove all limits on code-sharing. Previously, Chinese airlines were restricted to 12 US destinations and US airlines to just five in China; code-sharing was only slightly less restricted.

In August 2004, in the first stage of the deal, each side was allowed to add 14 passenger flights between the two countries. The US was also allowed to approve an additional all-cargo airline for US-China service, while China was allowed to add one passenger or all-cargo airline.

The US Department of Transportation (DOT) was quick to dole out the new flights. United Airlines and Northwest Airlines, the only US passenger carriers already approved to fly to China, were each allowed to add seven weekly passenger flights from August 1st. United says it will add a non-stop Chicago-Shanghai flight, while Northwest has already added a Detroit-Guangzhou route, becoming the first US passenger carrier to fly to the Guangdong capital.

The next month the DOT announced that, effective immediately, Polar Air Cargo would be the fourth US carrier to provide all-cargo services between the US and China, and that it would share 21 new weekly all-cargo flights with the three others -- FedEx, Northwest Airlines and UPS. Polar, FedEx and UPS each added six flights, with three cargo flights allotted to Northwest (in addition to the seven passenger flights it gained in August).

Slow ascent

Chinese airlines, meanwhile, have announced no changes to pre-July flight schedules. This is because they lack the capacity and the financial wherewithal. The country’s three passenger airlines -- Air China, China Eastern and China Southern -- and one cargo airline -- China Cargo Airlines, an arm of China Eastern -- offering services to the US manage a total of just 48 flights each week. That is six fewer than was allowed under the 1999 bilateral agreement, and just over half the number now allocated to US carriers.

China is also dragging its heals on approving another airline to fly US routes. Under the deal, it could have added either a passenger or an all-cargo airline to serve the US in 2004. Hainan Airlines, China’s fourth-largest passenger airline, has applied for CAAC approval to add services to the US. Already operating international routes, it is a strong contender. Meanwhile on the cargo side, Air China Cargo -- set up by Air China, Beijing Capital International Airport and Hong Kong-based (though China-owned) CITIC Pacific in late 2003 -- is eager to compete with China Cargo Airlines on routes to the US.

The US airlines’ lead over their Chinese counterparts in transpacific flights will widen further in March, when the bilateral agreement allows for the addition of another passenger carrier as well as seven passenger and 18 cargo flights. The race is on in the US to be the next approved airline, which will be granted the seven new passenger flights. The DOT has said it will choose one of the applicants -- probably American Airlines, Continental Airlines or Delta Air Lines (though Hawaiian Airlines and North American have also applied) -- in time for that airline to start services on March 25th. The bidding has become heated on the DOT website, with each company claiming, among other things, to be better located geographically (American would fly from Chicago, Continental from Newark and Delta from Atlanta).

Why the risk?

The US has predictably jumped at the chance to expand into the Chinese market, adding carriers and flights as soon as the new agreement has allowed. But China has not responded in kind. Surely the Chinese authorities could have seen this coming, so why agree to allow such fast-paced liberalisation?

The move, though controversial in China, was necessary. The country’s international air transport system, and air cargo services in particular, remains woefully inadequate. For example, the vast majority of international air cargo -- what is not carried by China Cargo Airlines or in the bellies of Chinese passenger flights -- is handled by foreign airlines. Yet the government has strictly limited the number of those flights. (Foreigners will remain significant players under the new deal, however, and will be allowed to establish cargo hubs in China by 2007.) Meanwhile, the demand for air cargo services is climbing quickly. The CAAC expects China’s air cargo volume to expand by 10% a year, to reach 4.7m tons by 2010.

Of particular concern to China is that services connecting to the US are far short of where they should be. Last year the US took in some US$92.5bn-worth of Chinese exports, a year-on-year increase of 32.2%. Keeping goods flowing to the US, China’s largest export market, is crucial. Clearly, to continue expanding as a global exporter, air services must be similarly expanded.

But while the health of the economy in general and manufacturers in particular has been put before the immediate comfort of local airlines on the one hand, on the other hand these plans for liberalisation are intended to increase the fortitude of Chinese carriers over the long term. This will be possible with the support of other government policies. Access for foreign investment and participation in the sector has been greatly expanded since 2002, for instance, assuring that overseas financing and expertise will be available to assist with the transformation of China’s aviation sector. Moreover, the government has announced that it is easing restrictions on purchases of cargo planes, which could help solve the capacity problem and encourage the creation of other all-cargo carriers. It will be a tricky period for China’s air carriers. But by 2010, after facing off against the world’s largest airlines, they should emerge as stronger competitors.

SOURCE: Business China
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Old February 21st, 2005, 06:50 AM   #222
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Quote:
Originally Posted by hkskyline
Beijing Capital International









airports always importantsthats incredible the development of modern china
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Old February 21st, 2005, 02:44 PM   #223
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New Terminal of Beijing Airport under construction



Source: Nicholas Wu @ Airliners.Net

Last edited by gakei; February 21st, 2005 at 02:51 PM.
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Old February 21st, 2005, 04:06 PM   #224
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China Airports

I believe Shanghai Pudong International Airport's final size would be bigger than Beijing Capital International Airport, even with Terminal 3 in place. Guangzhou Baiyun would have a much bigger terminal area but would be smaller than Bejing Capital in total land area.

Guangzhou Baiyun's latest design has five terminals and about two hundred gates. How can its two runways support the expected number of aircraft it could handle at a time (which is somewhere near 200)?

The terminal 3 at Beijing Capital will have 66 gates upon completion but will eventually have 120 gates when the final phase is completed (date unknown).

I think Shanghai Pudong's Masterplan is the best among the three. It will have a total area of 4,000 hectares [Beijing Capital's land area (once T3 is complete) will be 2,600 hectares]. It will have at least four runways and can further rise to six when the need arises. This masive masterplan however pales in comparison with other aerotropolis developments in Asia like: Kuala Lumpur International Airport (in Sepang, Kuala Lumpur Metropolitan Area, Malaysia) which has 10,000 hectares in reserved land for expansion, and Seoul Incheon's 5,617 hectares--makes Hong Kong's Chek Lap Kok International Airport seem small (a huge reclaimed airport between two islands west of Seoul). For a look at my list of the world's largest airports by land area go to "The World's Largest Airports" thread.
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Old February 21st, 2005, 11:08 PM   #225
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Monday February 21, 4:31 AM
China's first private airline may take off next month

BEIJING (AFP) - China's first private airline could start operations as early as next month depending on the go-ahead from authorities.

Okay Airways is preparing to operate from its base at Binhai International Airport in Tianjin municipality near Beijing and has set its sights on a maiden flight on March 5, the Economic Observer reported.

"We plan to lease three Boeing 737s," Han Jing, a ranking executive with the company, told AFP. He declined to comment on the report that operations could begin in March.

Okay Airways expects to engage in air cargo and express services, passenger charter services and ground distribution, the China Daily newspaper said.

With Okay Airways seemingly just weeks away from take-off, the civil aviation authorities are preparing regulations on the use of private capital in the nation's airline sector, the newspaper reported.

"The draft version of the regulation has been completed," said Ma Zhen, deputy director of the aviation authorities' Department of Policy and Regulations.

"While helping to widen the investment channels, the regulation will also aim to limit monopolies over the civil aviation sector," Ma said.

No details have emerged yet about how much private capital the government plans to eventually allow into the civil aviation industry, the newspaper said.

However, Ma said the civil aviation authorities would still strive to ensure dominance by state-owned enterprises in the sector.

Okay Airways is not the only company trying to take advantage of the eased entry to the nation's rapidly expanding aviation industry.

Three other operators reported in the state media recently include United Eagle Airlines in the southwestern city of Chengdu, Spring International Airlines in the eastern city of Shanghai and Huaxia Airlines in China's west.

The liberalization of a sector that a generation ago was still considered quasi-military is part of China's struggle to meet demand for airline services, which is growing faster than the economy as a whole.

According to preliminary statistics from the civil aviation authorities, passenger volume topped 100 million last year, a rise of 38 percent from 2003.
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Old February 21st, 2005, 11:26 PM   #226
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China Eastern Airlines Jan passenger numbers 1.29 mln, down 4.75 pct yr-on-yr
21 February 2005

HONG KONG (AFX) - China Eastern Airlines Corp Ltd, one of the mainland's big three carriers, said it carried 1.29 mln passengers in January, down 4.75 pct year-on-year.

But on a month-on-month basis, the airline's passenger numbers grew 3.56 pct last month, it said.

The airline did not give any explanation for the year-on-year drop in passenger numbers in January.

The passenger load factor -- the percentage of seats filled to total seats available -- fell 4.5 percentage points year-on-year in January to 58.95 pct, and declined 2.73 percentage points from December.

Meanwhile, the overall load factor, including cargo operations, eased 2.41 percentage points on a yearly basis to 55.28 pct in January, and fell 3.76 percentage points month-on-month.
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Old February 22nd, 2005, 11:20 PM   #227
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US airlines battle for key routes
John Hughes
February 23, 2005

Lorance Hockert, a New York lawyer, flies to Beijing three times a year on Air China. Until now, he's had no other choice for the 13½-hour direct flight.

"I'd rather take a domestic carrier," says Hockert, a founding partner at Hockert, Warnock & Donnelly who helps US companies set up in China. He'll consider switching to Continental Airlines if the Houston-based carrier wins the right to start direct New York-Beijing flights.

Continental, American Airlines and 11 other US carriers are battling for new flights to China as they aim to tap rising demand for travel to the world's fastest-growing major economy.

The US Transportation Department will award 26 new weekly round-trip flights to as many as seven airlines as soon as this week, with services starting this year and next.

Growth on routes to China may be a bright spot for US airlines as they struggle to survive. The industry recorded US$33 billion (HK$257.4 billion) in losses between 2001, the year of the September 11 terrorist attacks, and 2004, as fuel prices rose and growing domestic competition forced down fares. China's air traffic probably grew 32 percent in 2004, more than double the global average, according to the Montreal-based International Air Transport Association.

"The fastest-growing market in the world right now is China," says Bill Hochmuth, senior research analyst at Minneapolis-based Thrivent Financial for Lutherans.

"For the airlines that can funnel passengers either into or out of China, it would be a huge coup."

Only two US airlines now offer passenger flights to the mainland: United Airlines, which operates daily direct flights to Beijing and Shanghai from Chicago and San Francisco; and Northwest Airlines, which flies daily from eight US cities to Beijing and Shanghai and six times weekly to Guangzhou, all via Tokyo.

By contrast, eight US carriers operated 315 weekly flights to Japan as of last August, according to the Transportation Department.

The United States is adding flights to the mainland under a 1980 aviation agreement that the two nations updated in July. Flights to Hong Kong are governed by a separate agreement.

American Airlines, the world's largest carrier, proposes to start a 14½-hour direct Chicago-Shanghai flight as more Americans travel to the fastest growing US export market.

China's economy expanded 9.5 percent last year, more than twice the pace of the United States.

"You've had tremendous growth in the demand for air travel to China and not much growth in supply," says Henry Joyner, senior vice-president of planning at American Airlines, which doesn't currently fly to China.

"We've been pushing very hard to get our foot in the door."

More flights to China will help underpin growth in the United States, where corporate profits and economic growth are increasingly dependent on trade with China, says Charles Hunnicutt, assistant transportation secretary to former US President Bill Clinton.

"China is the future in terms of the engine for economic growth," says Hunnicutt, who is now a lawyer at Robins, Kaplan, Miller & Ciresi in Washington.

"It's not just the airlines and not just the large companies. Whole communities have an interest in this."

United and Northwest are both competing for the new routes.

United proposes to add passenger services between San Francisco and Guangzhou, initially via Tokyo, and Northwest is applying to connect its cargo routes to Guangzhou and Xiamen, according to documents the carriers filed with the Transportation Department.

New contenders for passenger flights include American Airlines; Continental, which proposes routes from Newark to Beijing and Shanghai; Delta Air Lines, which aims to serve Beijing from its Atlanta base; Hawaiian Holdings, which is offering San Diego-Shanghai flights via its Honolulu base; and North American Airlines, applying to fly from Oakland, California, to Shanghai and Guangzhou via Honolulu.

Cargo carriers competing for flights include Memphis-based FedEx and Atlanta-based United Parcel Service.

Higher profits on routes to China would offer US airlines a reprieve from money-losing routes at home.

American Airlines' proposed seven weekly Chicago-Shanghai flights would carry an estimated 136,552 passengers in their first year, the carrier said in its application to the Department of Transportation - 78 percent in economy class, 15 percent in business class and 7 percent in first class.

That would generate an estimated US$215 million in annual ticket sales, based on fares United charged for Chicago-Shanghai flights departing in February and returning a week later. While that's a tiny share of American's US$18.6 billion in total 2004 revenue, long-haul international flights are more profitable than domestic routes.

US-China routes are especially valuable because the governments restrict flights between their countries, says Scott Yohe, Delta's senior vice president of government affairs. The 26 new flights being awarded will take the number of weekly US-China flights to 133, still less than half the number to Japan. Another 116 will be added by 2010 under the July agreement.

"There are only so many opportunities to fly to China from the United States," says Yohe. "There is a scarcity there that translates into an asset that has value."

BLOOMBERG
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Old February 23rd, 2005, 01:31 AM   #228
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Hmmm.....so airlines like Deer Jet are owned by the government?
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Old February 23rd, 2005, 01:49 AM   #229
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Wednesday February 23, 6:55 AM
American, Continental Win China Route

AP - American Airlines and Continental Airlines on Tuesday won tentative government approval to begin nonstop passenger service from the United States to China, defeating Delta Air Lines Inc. for the right to serve a growing travel market.

American, a unit of AMR Corp., said it would begin flying from Chicago to Shanghai in April 2006, while Continental Airlines Inc. said it would fly between Newark, N.J., and Beijing but did not announce a date.

UAL Corp.'s United Airlines and Northwest Airlines Corp. already fly between the two countries.

The announcements by American and Continental came after the Department of Transportation proposed granting them authority for the flights. The agency also awarded new cargo service to four carriers: FedEx Corp., Northwest Airlines Corp., Polar Air Cargo and UPS Inc.

The agency said it would issue a final decision on the awards after reviewing comments on its proposals. The comments are due March 4.

China and the United States signed an aviation agreement last July to expand service between the two countries and drop most restrictions on each other's airlines. The pact increases the numbers of passenger and cargo flights allowed by Chinese and U.S. carriers in stages over the next six years, rising from the current 54 per week to 249. The deal is intended to ease shortages of seats that have prompted complaints from tourists and business travelers.

Other carriers that applied to become new entrants in the U.S.-China passenger market in either 2005 or 2006 were Delta, Hawaiian Airlines and North American Airlines. Evergreen International Airlines, Gemini Air Cargo and World Airways applied for the all-cargo flights.

American's chairman and chief executive, Gerard J. Arpey, expressed gratitude after the Fort Worth-based carrier was picked over the other carriers.

"For more than five years, we have wanted to fly to China and have believed that American's service will provide the strongest possible competition in this growing marketplace," Arpey said in a statement. "This award for new service starting in 2006 will be a big breakthrough for us in the Asian market."

American had lined up significant support in Congress, especially among lawmakers from Texas and Illinois. The flights will link China to Chicago's O'Hare Airport.

Larry Kellner, Continental's chairman and CEO, said nonstop flights to Beijing from the New York area would be a boon to business travelers. Continental launched daily service between Newark and Hong Kong in March 2001.

Delta did not immediately return a call for comment. Hawaiian spokesman Keoni Wagner said "we're disappointed, but China remains an aspiration of ours."

Dan McKinnon, president of privately-held North American, said his airline was the only low-cost carrier in the bidding but that regulators seemed more concerned with American's ability to offer competition against United on the Chicago-China route.
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Old February 23rd, 2005, 08:42 AM   #230
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Strong US economy encourages Asia/Pacific airlines to add capacity - CAPA
22 February 2005

SYDNEY (AFX) - The strengthening US economy is fuelling passenger and cargo demand, prompting several Asia/Pacific carriers to add capacity to New York, including Air India, Cathay Pacific, and Qantas, the Center for Asia Pacific Aviation (CAPA) reported.

The Sydney-based aviation industry consultancy said New York, seen as key premium market, is a priority route for several carriers rolling out inflight services upgrades, such as inflight connectivity.

CAPA said new aircraft equipment is also allowing Asian carriers to serve New York non-stop, with Singapore Airlines, Emirates Airlines and Thai Airways now going head-to-head with ultra-long haul services.

It said US carriers are also looking more closely at Asia, as they expand international routes in response to tough market conditions domestically.

The firm noted Continental Airlines has won new daily services rights to China available from next month under the recently expanded US-China bilateral air services agreement.

Continental plans to launch a non-stop B-777 service to Beijing from New York-Newark.

According to the US Department of Transportation (DOT), 'the most serious service deficiency is the lack of US-carrier nonstop service to China from New York, which represents by far the largest US-China market in this proceeding.'

On Tuesday DOT selected Continental Airlines and American Airlines as new entrants in the US-China air market, as well as awarding new weekly cargo services to four carriers currently serving the market.

The draft decision covered Continental Airlines providing a daily Newark-Beijing passenger service, effective from March 25 this year, and American Airlines providing a daily Chicago-Shanghai service effective from March 25, 2006.

Federal Express, Northwest Airlines, Polar Air Cargo and United Parcel Services were each awarded three weekly freighter services, effective March 25, 2006.

Continental Airlines said it commended DOT for opening the door to new competition between the US and China.

'Business travellers will appreciate how easy and convenient it is to use Continental to access Beijing's thriving network of high-tech industries and manufacturing plants,' Continental Airlines chairman and chief executive Larry Kellner said in a statement.

American Airlines also welcomed it being chosen to service the China/US route, saying that for more than five years it has wanted to fly to China.

'This award for new service starting in 2006 will be a big breakthrough for us in the Asian market,' the airline's chairman and chief executive Gerard J. Arpey said in a statement.
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Old February 23rd, 2005, 05:38 PM   #231
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Delta "bitterly disappointed" over losing China flights bid
23 February 2005

ATLANTA (AP) - Delta Air Lines has lost a bid to begin making nonstop flights to China.

Instead, the government awarded passenger flight rights to Continental and American airlines.

The U.S. Department of Transportation announced the tentative awards Tuesday, which also gave UPS, FedEx, Northwest Airlines and Polar Air approval for more cargo flights. The Transportation Department gave the flight rights under terms of an updated U.S.-China air treaty.

The agency said it would issue a final decision on the awards after reviewing comments on its proposals. The comments are due March 4.

But for now, Atlanta-based Delta is left as the only one of the five largest airlines without nonstop flights to the world's most populous nation.

"We're bitterly disappointed," Delta spokesman John Kennedy said.

Beijing flights would have given the struggling airline another major Asian destination and a foothold in a travel market with huge potential.

Kennedy noted Chicago will eventually have three daily flights to China as a result of the government's decision, while Atlanta will have none.

"We are at a loss to understand why the DOT has chosen to increase service at an already established gateway while totally ignoring their own precedent of opening new gateways to underserved areas of the country," he said.

Delta said it plans to challenge the decision.

Currently, Northwest and United are the only U.S. carriers with nonstop flights to China. American plans to operate its new flights from Chicago, while Continental will fly from Newark, N.J.

The Transportation Department said it chose Continental because the Houston-based carrier proposed to begin offering daily nonstop flights to China from the East Coast a year earlier than Delta would have. New York is the largest U.S. market for flights to China, the agency said.

American Airlines, which is based in Fort Worth, Texas, beat out Delta with its application to fly from Chicago to Shanghai starting next year because it increases competition with United and Northwest airlines and serves a larger market than Delta's proposal.

Delta remains a smaller player in Asia, with flights to Tokyo and Mumbai, India. It also sells seats aboard China Southern flights between Los Angeles and Guangzhou, China.

China and the United States signed an aviation agreement last July to expand service between the two countries and drop most restrictions on each other's airlines.

The pact increases the numbers of passenger and cargo flights allowed by Chinese and U.S. carriers in stages over the next six years, rising from the current 54 per week to 249. The deal is intended to ease shortages of seats that have prompted complaints from tourists and business travelers.
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Old February 24th, 2005, 07:38 PM   #232
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Delta stalls, UPS gains in China sky sweepstakes
RUSSELL GRANTHAM, DAVE HIRSCHMAN
23 February 2005
The Atlanta Journal - Constitution

For Atlanta travelers, it looks like today's version of the slow boat to China --- a connecting flight --- is still the only way to get there from here.

Delta Air Lines lost its bid to begin nonstop flights between Atlanta and China, with the government instead awarding new passenger flight rights to Continental and American airlines.

"We're bitterly disappointed," Delta spokesman John Kennedy said. Beijing flights would have given the ailing airline a marquee Asian destination and a toehold in a travel market with huge potential.

While Delta lost out, Sandy-Springs-based UPS got three additional cargo flights to China from other U.S. cities, which will boost its total to 21 per week.

The U.S. Department of Transportation announced the tentative awards Tuesday. In addition to UPS, FedEx, Northwest Airlines and Polar Air also got approval for more cargo flights. The DOT doled out the flight rights under terms of an updated U.S.-China air treaty.

Atlanta-based Delta is the only one of the five biggest airlines without flights to the world's most populous nation. Delta unsuccessfully sought approval for flights to China from New York and Cincinnati in 2000.

Northwest and United are the only U.S. carriers with nonstop flights to China, from Chicago and San Francisco. American plans to operate its new flights from Chicago, while Continental will fly from Newark, N.J.

Kennedy noted Chicago will eventually have three daily flights to China as a result of the government's decision, while Atlanta will have none.

"We are at a loss to understand why the DOT has chosen to increase service at an already established gateway while totally ignoring their own precedent of opening new gateways to under-served areas of the country," the Delta spokesman said.

Delta said it plans to challenge the decision.

Sooner was better

The DOT said it chose Continental because the Houston-based carrier proposed to fill "the most serious service deficiency" in the nation by offering the only daily nonstop flights by a U.S. carrier to China from the East Coast a year earlier than Delta would have. The agency said New York is the largest U.S. market for flights to China.

American, based in Fort Worth, Texas, edged out Delta with its application to fly from Chicago to Shanghai starting next year because it increases competition with United and Northwest, and serves a larger market than Delta's proposal, according to the DOT.

Kennedy said Delta will continue to pursue flying rights to China. "We believe we had the superior case," he said. "The [passenger] feed through Atlanta dwarfs any other city."

Delta is a bit player in Asia, with flights to Tokyo and Mumbai, India. It also sells seats aboard China Southern flights between Los Angeles and Guangzhou, China.

For UPS, the three added flights will build on an already lucrative business for the cargo shipper.

China is the world's fastest growing air cargo market, and UPS started flying its own planes to China in 2001. It now has 12 flights a week, with authority to boost that to 18 this year.

Profitable routes

UPS officials said they initially expected each China route to bring in about $50 million in revenue, but actual performance has surpassed that.

UPS' overseas profits topped $1 billion for the first time in 2004, with China exports skyrocketing 125 percent and Asia exports surging 34 percent.

The shipping company's international ambitions used to focus on Europe. More recently it shifted to Asia, where UPS has begun next-day deliveries throughout much of the region and long-range flights to Europe and the United States.

UPS paid $100 million to buy out a portion of Chinese state carrier Sinotrans and will run its own operations in China's largest cities by the end of the year. UPS' logistics subsidiary, Supply Chain Solutions, is expanding services to corporate clients there.

The biggest challenge to UPS and FedEx is the U.S.-China trade imbalance. Cargo planes are typically full of electronics, consumer goods and high-end textiles on eastbound flights, but they are nearly empty or loaded with relatively low-value air freight flying west.

John Wheeler, a UPS spokesman, said the company is counting on a growing Chinese middle class to fuel future demand for U.S. exports.

"We're telling our customers that we'll be in a position to help them sell their products in China as the middle class there grows," he said.
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Old February 24th, 2005, 07:55 PM   #233
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Lufthansa to launch non-stop daily flights to Guangzhou

SHANGHAI, Feb 24 (AFP) - German airline Lufthansa said Thursday it will launch a non-stop daily service between Germany's financial centre of Frankfurt and the southern Chinese city of Guangzhou to strengthen its position in the Asian market.

Lufthansa currently serves Guangzhou with a daily service from Munich via Shanghai, but the new non-stop route beginning in late March would shave five hours off the journey time.

The carrier also plans to add new services to other Asian destinations including three new weekly flights from Frankfurt to Hyderabad in India.

It would also add two extra flights to its five weekly flights from Frankfurt to Nagoya in Japan, the company said.
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Old February 25th, 2005, 12:33 PM   #234
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Business Times - 25 Feb 2005

Beijing's airport says Jan passenger traffic rose 18%


HONG KONG - Beijing Capital International Airport Co on Friday said passenger traffic at the Chinese capital's airport rose 18 per cent in January compared to the same time last year.

Around 2.92 million passengers used the airport during the month, of which 79 per cent travelled on domestic routes, 18 per cent on international routes and the rest on Hong Kong and Macau routes.

The number of passengers travelling on domestic routes rose 21 per cent and passengers on international routes were up 11 per cent. But those travelling on Hong Kong and Macau routes fell 10 per cent.

The Hong Kong-listed airport didn't give a reason for the changes.

Aircraft takeoffs and landings at the airport rose 12 per cent on year in January, it said. Of those, 79 per cent were domestic flights, 18 per cent were international and the rest were flights to Hong Kong and Macau.

The number of domestic flights rose 11 per cent on year, international flights were up 18 per cent, and Hong Kong and Macau flights increased three per cent.

In 2004, the airport handled 60,557 metric tons of cargo and mail, up 44 per cent from a year earlier.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.
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Old February 27th, 2005, 06:01 PM   #235
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China's Okay Airways Receives Its First Boeing 737-900
27 February 2005

SHANGHAI (Dow Jones)--China's Okay Airways Company Ltd. has received its first Boeing 737-900 airplane, Boeing Co. (BA) said in a statement posted on its Web site.

Okay Airways is China's first private airline and is expected to begin operating early next month, Boeing said in a statement dated Friday. Okay Airways has received its business license as a public aviation carrier from the Civil Aviation Administration of China, Boeing said.

Boeing said the new airline will begin with charter passenger services, domestic air cargo, and mail transport and express service from its base in Tianjin, a city in eastern China.

The Chinese airline has an agreement to sublease two 737-900s from Korean Airlines, the statement said. The airplanes are owned by Boeing Capital Corp, it said.

Okay Airway's 737-900s will be used primarily in passenger service, initially for routes such as Tianjin to Kunming, Changsha, Zhang Jiajie, Guilin, Hohhot, Taiyuan, and Harbin, Boeing said.

China's air industry is dominated by three major state-controlled international carriers - Air China, China Southern Airlines Group and China Eastern Airlines Group.

Beside the three major carriers, China's domestic air industry is serviced by various regional airlines usually backed by the provincial or municipal authorities.

Earlier this month, the state-owned China Daily reported that the CAAC was expected to issue a license to Okay Airways to operate as the country's first private line.

Three other airlines are expected to follow Okay Airways as private carriers: Shanghai-based Spring International Airlines, Chengdu-based Eagle Airlines, and Huaxia Airlines in Gansu Province, the newspaper said.
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Old February 28th, 2005, 05:58 AM   #236
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Pakistan Int'l Airlines to Expand Services to China

ISLAMABAD, Feb 28 Asia Pulse - Pakistan International Airlines (PIA) has decided to expand its air service to China, serving the growing number of passengers on the Islamabad-Urumqi route.

The flight operation on this route will start within the next couple of months, with one or two flights to be offered per week.

The airline is now in a process of setting up its office in Urumqi in Xinjiang province and making other necessary arrangements.

Under an agreement, PIA is entitled to increase the maximum passenger and cargo flights to China to fourteen per week from the present four per week.

(PPI)
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Old February 28th, 2005, 05:09 PM   #237
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INTERVIEW: UPS Eyes China As Logistics Growth Driver
By Jeffrey Ng
27 February 2005

HONG KONG (Dow Jones)--With a stagnating domestic package business in the U.S., Atlanta-based United Parcel Service Inc. (UPS) is looking to China's burgeoning logistics market as a source of sustained future growth.

"Our plan in China is really aggressive," said Daniel Chen, managing director for strategic planning and development for UPS in China, noting that the company has committed over US$600 million in the past three months for investment in China.

"We are ahead of many players here in the field in terms of expanding and building up infrastructure," he said.

Of the total capital expenditure earmarked for China, some US$500 million will be used to expand infrastructure by building 20 new warehouse and distribution facilities over the next two years. This will bring the total number of such centers to 60 by the end of 2006, said Chen.

UPS also plans to invest US$100 million in expanding a joint-venture express delivery company with Sinotrans Group, one of China's biggest express parcel operators.

When the deal is concluded, UPS will own that company, making it the first foreign company to have a wholly-owned operation in the express parcel business in China once Beijing has relaxed ownership rules in this sector at the end of the year under the World Trade Organization.

Once that happens, said Chen, UPS will have wholly-owned operations in 23 locations in China covering 200 cities.

UPS's expansion in China follows a banner year for the company's China operations in 2004, when its export volume in that market doubled, reflecting the country's surging economy.

In China, a hotly contested market, UPS measures the turnover in packages handled under export volume and doesn't provide actual shipment figures.

Chen expects business volume from China to grow at a faster rate in 2005 than in previous years.

"We grew 100% last year while growth in the year before was between 50% and 60%," said Chen.

"So if you take that trend and project it onto this year the growth could be as high as 200%."

In China, UPS provides international parcel express and logistics services. Its main clients are multinational and foreign companies operating in China.

Chen said UPS' future expansion in China may involve acquisitions of either international or local companies.

His bullish outlook for UPS' business in China contrasts with its sluggish operating environment in its home market, the U.S., where the company derives the bulk of its revenue. UPS reported a mere 1.3% on-year rise in fourth-quarter earnings from its overall operations, down from 20% in the third quarter, due to competitive pressures.

In an attempt to turn around its business in the U.S., UPS plans to cut expenses by about US$200 million this year and accelerate marketing to medium-sized companies.

Chen said another avenue for growth in China will soon be available to UPS. Foreign package companies, which are so far only allowed to service international shipments, will be able to offer domestic delivery services in China under the WTO.

"Basically, the entire market will be open and there will be a lot of opportunities," Chen said.

-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; [email protected]
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Old March 1st, 2005, 03:50 PM   #238
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China flights are airlines' $100 million brass ring New routes mean big bucks
Marilyn Adams
1 March 2005
USA Today

New China routes should yield at least $100 million each in first- year passenger revenue for struggling American and Continental airlines, and provide a strategic advantage for years to come.

Washington, D.C.-based consultant Mo Garfinkle, a longtime adviser to U.S. and Chinese airlines, says the decision by the U.S. Department of Transportation last week to award the China routes was the most valuable such decision in more than a decade.

"To be a global carrier, one must be in China," said Garfinkle. "The value of China (to U.S. airlines) will eventually exceed the value of Heathrow," the London airport considered the gateway to Europe.

Revenue estimates reflect the airlines' projections of initial passenger traffic in DOT filings and current airfares between the countries.

In 2004, American lost $761 million; Continental $363 million.

No. 1 American and No. 5 Continental now join No. 2 United as the only U.S. carriers authorized to fly non-stop to mainland China. Northwest flies to China through Tokyo.

No. 3 Delta Air Lines, whose application for a new route was denied, is the largest U.S. carrier without China flights.

Continental won the right to offer the first daily, non-stop flights on what someday is expected to be one of the world's busiest routes: New York City to Beijing, China's capital.

Continental will start flights from Newark Liberty Airport this summer. Air China, which offers the only non-stop New York-Beijing service now, flies four days a week from New York's John F. Kennedy airport.

"This is a huge deal for us," says Jim Compton, Continental's marketing chief.

With fares on domestic routes flat or down, Continental plans to expand international flying capacity 20% this year, including its China service.

American will fly non-stop to Shanghai, China's largest city, from Chicago's O'Hare Airport in March 2006. It will compete against United on the same route.

"Some of our biggest customers, like Wal-Mart and Motorola, were telling us they needed more convenient flights to China," said Henry Joyner, American's senior vice president for planning. "Access to China will be an advantage to those who have it as long as flights are restricted."

The DOT says the travel market between New York and Beijing is almost three times as large as the Chicago-Shanghai market.

At a time when most big airlines are desperate for profits, China is a valuable prize.

As the USA's top Asian trading partner, China's economy is exploding, and travel between the USA and China has been growing 20% a year or more -- faster than anywhere else.

A treaty signed last July by the U.S. and China gradually expands the number of airlines and flights between the two countries.

DOT last week chose American and Continental from among several applicants for the passenger routes.

The agency divided rights for 12 weekly flights among FedEx, Northwest, Polar Air Cargo and UPS.

All four currently operate cargo flights to China.
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Old March 2nd, 2005, 12:47 PM   #239
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Awww..........I want my Beloved Delta to fly to China as well. God, I'm so happy for China. They're gonna make the world even more prosperous than it is.
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Old March 2nd, 2005, 05:43 PM   #240
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China flights are airlines' $100 million brass ring
New routes mean big bucks

Marilyn Adams
01 March 2005
USA Today

New China routes should yield at least $100 million each in first-year passenger revenue for struggling American and Continental airlines, and provide a strategic advantage for years to come.

Washington, D.C.-based consultant Mo Garfinkle, a longtime adviser to U.S. and Chinese airlines, says the decision by the U.S. Department of Transportation last week to award the China routes was the most valuable such decision in more than a decade.

"To be a global carrier, one must be in China," said Garfinkle. "The value of China (to U.S. airlines) will eventually exceed the value of Heathrow," the London airport considered the gateway to Europe.

Revenue estimates reflect the airlines' projections of initial passenger traffic in DOT filings and current airfares between the countries.

In 2004, American lost $761 million; Continental $363 million.

No. 1 American and No. 5 Continental now join No. 2 United as the only U.S. carriers authorized to fly non-stop to mainland China. Northwest flies to China through Tokyo.

No. 3 Delta Air Lines, whose application for a new route was denied, is the largest U.S. carrier without China flights.

Continental won the right to offer the first daily, non-stop flights on what someday is expected to be one of the world's busiest routes: New York City to Beijing, China's capital.

Continental will start flights from Newark Liberty Airport this summer. Air China, which offers the only non-stop New York-Beijing service now, flies four days a week from New York's John F. Kennedy airport.

"This is a huge deal for us," says Jim Compton, Continental's marketing chief.

With fares on domestic routes flat or down, Continental plans to expand international flying capacity 20% this year, including its China service.

American will fly non-stop to Shanghai, China's largest city, from Chicago's O'Hare Airport in March 2006. It will compete against United on the same route.

"Some of our biggest customers, like Wal-Mart and Motorola, were telling us they needed more convenient flights to China," said Henry Joyner, American's senior vice president for planning. "Access to China will be an advantage to those who have it as long as flights are restricted."

The DOT says the travel market between New York and Beijing is almost three times as large as the Chicago-Shanghai market.

At a time when most big airlines are desperate for profits, China is a valuable prize.

As the USA's top Asian trading partner, China's economy is exploding, and travel between the USA and China has been growing 20% a year or more -- faster than anywhere else.

A treaty signed last July by the U.S. and China gradually expands the number of airlines and flights between the two countries.

DOT last week chose American and Continental from among several applicants for the passenger routes.

The agency divided rights for 12 weekly flights among FedEx, Northwest, Polar Air Cargo and UPS.

All four currently operate cargo flights to China.
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