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Old August 15th, 2006, 11:36 PM   #121
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United plans non-stop from Washington to Beijing

CHICAGO, Aug 15, 2006 (AFP) - United Airlines has applied to offer the first non-stop flight from Washington to Beijing, the airline said Tuesday.

If approved by both governments, daily flights between the two capitals will begin in March 2007.

United already offers daily non-stop flights to China out of Chicago, San Francisco and Los Angeles.

The new route drew support from the speaker of the US House of Representatives.

"Capital-to-capital service will support the continuous dialogue that is critically needed between these two governments as China continues to grow in the global economy," Dennis Hastert wrote in a letter to the Department of Transportation.

"More opportunity for interaction between US and Chinese policymakers is needed as we work through the economic and political challenges that face our countries."

United was the first US airline to enter the Chinese market more than 20 years ago. About 25 percent of United's capacity currently serves the Asia-Pacific and the airline -- which has recently emerged from bankruptcy protection -- said it is committed to expanding service to the region.
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Old August 30th, 2006, 01:28 AM   #122
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China Eastern Airlines loss nearly triples on high fuel prices, take-over costs

SHANGHAI, Aug 29, 2006 (AFP) - China Eastern Airlines nearly tripled its first-half loss compared to a year ago as the Shanghai-based carrier continued to battle high jet fuel prices and costs from recent take-overs.

The group saw a first-half net loss of 1.72 billion yuan (215 million dollars) under international accounting standards, against a net loss of 581 million yuan in the same period a year ago, it said in a statement.

Total revenue in the first six months was 16.96 billion yuan, up 59.6 percent from a year ago, the statement said.

The Hong Kong-listed carrier said higher fuel prices was an important factor in increasing costs.

China Eastern bought China Northwest Airlines and Yunnan Air in July last year, also increasing expenditures as it overhauled part of its fleet, made aircraft purchases and absorbed staff from the other carriers.

"Clearly the merger between China Eastern and the two regional airlines has not been as positive to earnings as hoped," said Guotai Junan analyst Alan Lam.

But he added that provisions made in the first half for the absorption of the new airlines will not occur again, and costs are likely to fall.
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Old August 30th, 2006, 01:34 AM   #123
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China to open more air routes ahead of Olympics

BEIJING, Aug 22, 2006 (AFP) - China will open more international and domestic air corridors to ease growing aviation traffic problems ahead of the 2008 Olympics, state press reported Tuesday.

New air corridors are being planned from Beijing to Japan, South Korea and Mongolia, the China Daily reported, citing the General Administration of Civil Aviation.

The extra international routes come after China opened another air corridor to Europe in April which cut flight times by half and hour.

Domestically, second routes will be introduced from Beijing to Shanghai and Guangzhou in the south, while a new corridor over the ocean will also open between Shanghai and Hong Kong, the newspaper said.

The report said the extra routes were needed to ease rising aviation traffic congestion in China, particularly ahead of the Olympics when passenger numbers are expected to spike sharply.

The International Air Transport Association has lobbied China to open more air corridors, with the organization's director general, Giovanni Bisignani, raising the issue when he came to Beijing last month.

Bisignani said China's air passenger numbers were expected to grow by 9.6 percent annually until 2009, with the nation remaining one of the world's fastest growing aviation markets.

The China Daily cited the association as saying air traffic was expected to jump by 15 percent during the period of the 2008 Olympic Games, and carried quotes from flag carrier Air China welcoming the extra air corridors.

"This will be great news for airlines," the paper quoted Air China spokesman Wang Yongsheng as saying.

"With these routes added, more flights can arrive on time and fewer planes need to circle around waiting for permission to land."

Chinese airlines carried 74.25 million passengers in the first half of 2006, up 17.9 percent from the same period a year earlier, while air cargo traffic increased 11.4 percent to 1.56 million tons, state press reports have said.
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Old August 31st, 2006, 06:59 AM   #124
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Thursday August 31, 4:01 AM
Chinese airline HNA orders 100 Embraer planes

BRASILIA (AFP) - Embraer, the Brazilian aircraft manufacturer, and Chinese regional airline HNA announced a 2.725-million-dollar deal for 100 planes, half of which will be manufactured in China.

Embraer said Hainan Airlines Company, the fourth largest airline company in China, is buying 50 50-seat ERJ 145s and 50 106-seat Embraer 190s.

The deal marks the first contract involving an ERJ 145 in mainland China, the Brazilian company said in a statement.

Embraer said the ERJ 145s will be produced by the joint venture Harbin Embraer Aircraft Industry (HEAI), in the northeastern Chinese city of Harbin, with deliveries set to begin in September 2007.

The Embraer 190, to be configured for single-class service, will be manufactured at Embraer's plant in Sao Jose dos Campos, in Sao Paulo state. Those deliveries are planned to start in December 2007.

The unit list price of the ERJ 145 is 21.5 million dollars and that of the Embraer 190 is 33 million dollars, a company spokesman said. Aircraft sales often are negotiated below the ticket price.

The agreement was to be signed in the afternoon at the presidential palace Planalto in the presence of Brazilian President Luiz Inacio Lula da Silva and China's top legislator, Wu Bangguo, chairman of the National People's Congress.

"We are delighted to make public this deal which confirms the correctness of our vision and Embraer's long-term strategy to become an important player in the Chinese market," said Mauricio Botelho, Embraer's chairman, president and chief executive.

"The 50 ERJ 145s will help HNA Group build a strong regional aviation network -- a solid foundation for its growth plans.

"At the same time, the debut of the Embraer 190 in mainland China is perfect for HNA Groups expansion plans for medium-density markets as well as high-frequency city-pairs, given the size, excellent performance, passenger comfort and economics of our E-Jets," Botelho said in the statement.

Chen Feng, the HNA chairman, said the acquisition "represents an important validation of our strategy of providing more flexible flights to match the rapidly increasing demand of the domestic market in China."

The head of the China Aviation Industry Corporation II (AVIC II), Embraers partner in the HEAI joint venture, underscored the deal's value for the joint venture and China's regional aviation market.

"The awarding of the order of 50 ERJ 145s by HNA Group will further secure the future success of the joint venture which, in turn, will strengthen the cooperation between China and Brazil in the aviation field," Zhang Hongbiao, president of AVIC II, said in the statement.

"The deal that was sealed today will push forward the booming of both the regional jet manufacturing business and the regional air transportation market in China," he added.

The deal lifted Embraer shares almost five percent in early afternoon trade on the Sao Paulo stock exchange.

Embraer began its joint venture with AVIC II in late 2002, with some 180 employees at the Chinese plant. To date, 12 ERJ-145s have been manufactured there for Chinese airlines, and another six are to be delivered this year and in 2007.

Five Brazilian-made Embraer planes are currently in service in China.

Embraer (Empresa Brasileira de Aeronautica) is the worlds leading manufacturer of commercial jets up to 110 seats.

As of June, it had firm aircraft orders totaling 10.2 billion dollars.

During a visit by Chinese President Hu Jintao to Brasilia in 2004, Brazilian officials expressed concern about the low volume of orders for the Harbin plant.

At the time, Brazil awarded China market-economy trade status.

That gesture drew criticism from Brazilian industries, since it reduced the possibility of taking anti-dumping actions against a country where the state strongly intervenes in price-setting and maintains an artificially low exchange rate on its currency.
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Old September 1st, 2006, 06:57 PM   #125
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RTHK news:
Beijing approves share deal between Air China & Cathay Pacific 2006-09-01 HKT 07:08

Beijing has approved a share transaction between Air China and Cathay Pacific, which will make Dragonair a wholly-owned subsidary of Cathay. The chairman of Air China, Li Jiaxiang, said he was waiting for the State Council to complete the paperwork on the restructuring. He said Air China planned to increase fuel hedging and surcharges to counter rising fuel costs. The airline posted a 23 percent fall in first half profit to 458 million yuan.
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Old September 2nd, 2006, 04:40 AM   #126
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If Cathay Pacific and Air China are to collaborate in a similar fashion of KLM and Air France, I believe they are going to have a great monopoly power in China and emerges as the MOST influential aviation power in the world.
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Old September 2nd, 2006, 06:41 AM   #127
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Quote:
Originally Posted by jeremy1897
If Cathay Pacific and Air China are to collaborate in a similar fashion of KLM and Air France, I believe they are going to have a great monopoly power in China and emerges as the MOST influential aviation power in the world.
There are 3 key airline groups in China, of which one is Air China. With more routes opening up internationally, the other airline groups have a lot of room for expansion and competition.
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Old September 5th, 2006, 06:35 PM   #128
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SAS to start Stockholm to Beijing flights in 2007

STOCKHOLM, Sept 5 (Reuters) - Scandinavian airline SAS said on Tuesday it will open a new route from Stockholm to China's capital city Beijing in April 2007.

SAS will fly the route four times a week on its Airbus A340 fleet, it said.

SAS's Finnish rival Finnair said in August it expected its Asian traffic to grow 30 percent during the rest of 2006 and next year.

Finnair operates daily direct flights from Helsinki to Beijing and Shanghai in addition to flights to Hong Kong and Guangzhou.
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Old September 8th, 2006, 06:46 AM   #129
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Continental touts bid for China service
7 September 2006

NEW YORK (AP) - Continental Airlines Inc. went on the offensive Thursday, hoping to win support for its proposed nonstop service betwen Newark, N.J., and Shanghai.

The carrier is jousting with American Airlines, Northwest Airlines and United Airlines to win government permission for the new service. Each hopes to link China's booming economy with one of its U.S. hubs, such as Washington, Dallas and Detroit.

Continental held a news conference in New York's Chinatown, asking its supporters to lobby the Department of Transportation. The carrier said its proposed route connects much larger markets than competitors' proposals. It also argued the New York area has a larger Chinese-American population than the other proposed cities.

Last month, American Airlines launched a Web site to build traveler support for its own bid to operate nonstop service to Beijing from Dallas-Fort Worth International Airport next spring.

Shares of Continental rose 61 cents, or 2.5 percent, to $25.47 in midday trading on the New York Stock Exchange.
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Old September 9th, 2006, 09:07 AM   #130
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RTHK news:
HAECO in joint venture to repair aircraft on mainland 2006-09-09 HKT 07:15

The Hong Kong Aircraft Engineering Company will form a 42-million dollar joint venture with Cathay Pacific and four other companies to repair aircraft landing gear on the mainland. The companies will build a centre in Xiamen. It's set for completion by the middle of 2008.
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Old September 10th, 2006, 10:35 PM   #131
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Dont know if this is the right place to ask this or not? But would be grateful if anyone could help.

Over here in Scotland today, one of the newspapers revealed that Glasgow (GLA) is on the verge of securing direct flights to Shanghai, starting in summer 2007.

I was just wondering if anyone has herd anything about this and what airline it is likely to be? FlyGlobespan? Virgin Atlantic? China Eastern? Air China?
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Old September 11th, 2006, 06:02 PM   #132
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Quote:
Originally Posted by hkskyline
There are 3 key airline groups in China, of which one is Air China. With more routes opening up internationally, the other airline groups have a lot of room for expansion and competition.
The other 2 airline groups are performing so poor that there is no real threat:
-China Southern, making losses in every year as far as i remember, poor customer base (Guangzhou, least int'l flyer), worst management and service.
-China Eastern, in between China Southern and Air China in most aspect (most int'l flyer in Beijing, then Shanghai), unfortunately not joining any global alliances so far, essentially being left out. Also face intense competition from Shanghai airline who is a member of Star Alliance.

I don't see how they are going to fight with Cathay-Air China alliance. Of course the market is blooming and they are getting more business. But no comparison with Cathay-Air China. It is indeed an incredibly clever move. Air China joining Star Alliance and Cathay being a part of oneworld, ie both getting business from its global alliance while the two can cooperate to share cost and dominate market.
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Old September 13th, 2006, 07:46 AM   #133
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US airlines seek public backing of China route bids
By Kyle Peterson

CHICAGO, Sept 12 (Reuters) - The four U.S. airlines jockeying for the next route to China are accelerating their campaigns to win support for their applications from the public and businesses.

AMR Corp.'s American Airlines, UAL Corp.'s United Airlines, Continental Airlines and Northwest Airlines are all racing to secure the prestigious service to add to their Asia routes.

As they make their case to the Transportation Department, which awards the route, the airlines also are making their case to potential customers.

"This is not some normal route application. China is where it's at," airline consultant Michael Boyd said. "It's critical because airlines that have the best access to China are going to have the best revenue flows domestically and internationally."

U.S. carriers, battered by low-cost competition at home, have sought out growth on lucrative international routes, and China's economic expansion presents a strong opportunity for airlines with service there.

The Transportation Department has said it would grant one additional daily route to China to one of four U.S. airlines that already fly there. The application deadline was in August, and the government is due to make its choice in February.

The United States keeps tight reins on rights to fly to communist China, so competition for the route among airlines is stiff.

United, which wants to add service from Washington D.C. to Beijing, is a member of the Capital-to-Capital Coalition, a group of Washington, D.C. organizations that supports that route. Currently there is no service between the two capitals.

"This is a unique route case for United, as it closes that service gap and provides much-needed capital-to-capital connectivity for our customers, governments, commerce and culture," UAL Chief Executive Glenn Tilton said in a recorded message to employees on Tuesday.

Continental jumped into the public relations contest last week, staging a press conference in New York's Chinatown, where it asked supporters to lobby for the airline's proposed service between New York/Newark and Shanghai.

The carrier has received more than 15,000 letters supporting its application, spokeswoman Julie King said.

American, which hopes to add service between Dallas/Fort Worth and Beijing, launched a Web site last month to win public support. The site, flytochinaonaa.com, calls on businesses and community members to speak out in favor of the route.

Northwest said it plans to launch a Web site to support its proposed Detroit-to-Shanghai route. In the meantime, it is making its case in briefings to customers and airport officials.

A strong public relations campaign could make or break an airline's bid to win the new route, said Joe Schwieterman, a transportation expert at DePaul University.

He said the public is unlikely to get excited over a new China route, but the airline that wins the most support from businesses has a leg up on the competition.

"Commerce speaks loudest when it comes to choosing new routes to China," Schwieterman said. "This is a horse race that is hard to predict."
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Old September 13th, 2006, 04:11 PM   #134
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KLM to increase flights to China's Chengdu city

BEIJING, Sept 13, 2006 (AFP) - KLM Royal Dutch Airlines will increase the number of round-trip flights between Amsterdam and southwest China's Chengdu city from two to three a week, the company said Wednesday.

The additional flight, which begins on December 1, comes due to strong demand on the route that was opened on May 28 this year with two flights a week, the company said in a statement on its website.

The additional flight using a Boeing 777 will depart Amsterdam on Friday and return on Saturday, it said.

The two existing flights depart from Amsterdam on Tuesday and Sunday, and from Chengdu on Wednesday and Mondays

According to local press reports a return trip prices will remain at 4,888 yuan (610 dollars).

Chengdu is the economic heart and capital of Sichuan province which boasts a population of around 87 million people and is a key tourist destination in China.
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Old September 15th, 2006, 12:36 AM   #135
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Air France-KLM aims to expand routes in China

SHANGHAI, Sept 14, 2006 (AFP) - Air France-KLM chairman and chief executive Jean-Cyril Spinetta said Thursday he was mulling greater cooperation with China-based airlines in a bid to add more routes to key mainland cities.

"We are considering cooperating with China Eastern to open two more routes to Wuhan and Wenzhou," Spinetta told a press briefing here, adding that he also hoped to increase flight frequencies on established routes.

"Our aim is to have two flights everyday to Shanghai, Hong Kong and Beijing, and one flight to Guangzhou."

Air France currently already operates two daily flights from Paris to Beijing, 10 weekly flights to Shanghai and three to the southern Chinese business hub of Guangzhou.

Under the KLM masthead, it also maintains services from Amsterdam to Beijing, Shanghai and the southwestern hub of Chengdu.

Europe's largest airline has code-sharing with China Eastern Airlines.

Spinetta said the French-Dutch group was indeed earning money on its China routes, with sales growing about 15 percent a year.

He said the group's cargo business to China, with 14 flights a week including Hong Kong, ranked first, but passenger volumes were behind that of its services to the United States, Japan and Canada.

In 2005 Air France hauled 800,000 passengers to China.

Spinetta refused to reveal when China Southern, which has the country's largest fleet, would become a fully-fledged member of the global airline alliance SkyTeam, saying cooperation was still in the initial stages.

The 10 members of the alliance announced in June that the Guangzhou-based airline would join in 2007.

SkyTeam groups 10 carriers, including Air France-KLM, Continental and Delta, which cooperate on reservations, connections, check-in, frequent-flier miles and other services for travellers.
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Old September 15th, 2006, 06:03 PM   #136
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Airlines lobby for new Beijing flight
15 September 2006

WASHINGTON (AP) - Four airlines are in an intense competition for a new air route to China, and United Airlines is pitching the prospect of Washington Dulles International Airport to connect with the Chinese capital.

The airline that wins the route will likely see a boost in revenue as international flights have become much more profitable than domestic flights. The Transportation Department is expected to choose one airline for the new route to begin service as early as March.

Interest in China is on the rise with its growing economy and the 2008 Olympics coming to Beijing.

American Airlines, Continental and Northwest are also competing for the Beijing flight but from different cities. American wants to fly between China and its hub in Dallas. Continental would fly from Newark, and Northwest hopes to fly from Detroit.

United has teamed up with the Washington Board of Trade and other groups to promote what would be the first "capital-to-capital" flight.
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Old September 24th, 2006, 11:48 PM   #137
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Air China is coming to Athens operating in codeshare with Olympic Airlines?
http://english.sina.com/business/1/2006/0904/88141.html



www.olympicairlines.com
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Old September 25th, 2006, 05:57 AM   #138
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Air safety headache as Chinese market expands: official

BEIJING, Sept 23, 2006 (AFP) - China's surging air travel market is giving authorities a safety headache as passenger numbers grow to a predicted 270 million by 2010, a senior aviation official said, quoted by Saturday's China Daily.

Wang Changshun, the deputy director of the General Administration of Civil Aviation of China (CAAC), said Beijing aimed for an accident rate of below 0.3 per million flight hours, a comparable rate to that in developed countries.

"With the rapid increase of the air transport volume and the fast expanding airplane fleets, we are facing more and more pressure and difficulty to ensure flight safety," he told a meeting Friday in the south of the country.

He said China had to overcome problems such as the lack of competent human resources, poor airport facilities, congested airspace and an incomplete legal framework.

Wang also blamed China's underdeveloped strength in aeronautics, saying it stunted the civil aviation industry and affected flight safety.

"Developed countries usually set civil aviation safety policies based on the technological support they have, while we mainly rely on our experience and promote that under administrative order," Wang added.

"We introduce not only most of our civil planes from abroad, but also most of the new techniques."

The CAAC in May announced the creation of an air safety institute to train 10,000 staff over the next five years.

Wang estimated that China would need 11,000 more pilots by 2010 and 18,000 by 2015.
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Old September 26th, 2006, 09:18 PM   #139
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Taiwan Considers Weekend Flights Direct to China
The Wall Street Journal 09/26/2006
Author: Alex Pevzner
(Copyright (c) 2006, Dow Jones & Company, Inc.)




TAIPEI, Taiwan -- Taiwan plans to extend holiday charter flights to China to weekends early next year, the island's top aviation negotiator said.

China and Taiwan agreed in June to allow direct charter flights across the Taiwan Strait every year during the four most celebrated festivals.

Regulators in Taipei have said they want to expand the plan to weekends and hope to open the door to Chinese tourists before the end of the year.

Taiwan's tourism industry is eager to see increasingly wealthy Chinese tourists visit the island to boost slack domestic consumption.

"Weekend charter flights can be launched as soon as Taiwan and China agree on the tourism issue," said Tony Fan, chairman of the Taipei Airlines Association, which handles charter talks with China on behalf of the Taiwan government.

"I think weekend charter flights will begin not later than the first quarter of next year," Mr. Fan said in an interview.

In June, Taipei and Beijing agreed to let passenger charters make 168 direct flights, round trip, during four major holidays every year and to let cargo charters make them on a case-by-case basis.

Holiday passenger flights will begin Friday, ahead of the Mid-Autumn Festival, which is on Oct. 6.

The other major holidays are the Lunar New Year in late January or early February, the Tomb Sweeping Festival in April and the Dragon Boat Festival in late May.

Taiwan is concerned weekend flights would lead to increased traffic to China for spending and leisure and would hurt the local economy, Mr. Fan said.

The government hopes arriving Chinese tourists will offset the negative effect, said Mr. Fan, who is also chairman of TransAsia Airways, Taiwan's second-largest domestic airline by market share.

In late August, Taiwan formed the Taiwan Strait Traveling and Tourism Association to handle tourism talks with its Chinese counterpart, the Cross-Strait Tourism Exchange Association.
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Old September 27th, 2006, 04:14 AM   #140
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Northwest Airlines applies for daily flights from Detroit to China

CHICAGO, Sept 26, 2006 (AFP) - Northwest Airlines filed an application with the US government to operate daily non-stop flights between Detroit, Michigan and Shanghai on Tuesday.

The application comes a month after rival United Airlines applied to operate non-stop service between Washington and Beijing. American Airlines and Continental have also proposed new routes to China.

"Northwest's Detroit to Shanghai nonstop proposal will establish the largest and most effective China gateway for Eastern US passengers," Doug Steenland, president and chief executive officer, said in the filing.

Northwest forecast that 214,000 people will take the flight in its first year of service.

Northwest proposes starting nonstop Detroit to Shanghai service on March 25, 2007, using its Boeing 747-400 aircraft with 65 seats in World Business Class and 338 seats in coach class.

Northwest Airlines is the world's fifth largest airline with hubs at Detroit, Michigan, Minneapolis, Minnesota, Memphis, Tennessee, Tokyo and Amsterdam, and approximately 1,400 daily departures from more than 900 cities around the world.
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