Text: Transportation Secretary Slater on New Air Services to China
(Names fourth U.S. carrier authorized to serve China)The all-cargo airline United Parcel Service (UPS) will become the fourth American carrier authorized to serve China, says U.S. Transportation Secretary Rodney E. Slater.
The other American carriers already serving the China market are United Airlines, Northwest Airlines, and Federal Express.
In announcing the Department of Transportation's final decision on new air services to China January 10, Slater said the three other carriers are being allowed to increase the number of flights to China.
The decision Slater announced makes final the Transportation Department's tentative decision of November 21.
Following is the text of the news release:
(begin text)
FOR IMMEDIATE RELEASE
Wednesday, January 10, 2001U.S. Transportation Secretary Slater
Announces Final Decision on New U.S.-China ServicesU.S. Transportation Secretary Rodney E. Slater today announced the final decision of the U.S. Department of Transportation on new air services to China, in which the all-cargo airline United Parcel Service (UPS) was selected as the fourth U.S. carrier authorized to serve China and the carriers currently serving the market were provided the opportunity to increase their services.
Today's decision makes final the department's tentative decision of Nov. 21.
"President Clinton and Vice President Gore have made expanding trade and global opportunity a top priority because it leads to economic growth and creates opportunity here in the United States," U.S. Transportation Secretary Rodney E. Slater said. "I have been committed to working to further liberalize air services between the United States and China, and I look forward to the continuing expansion of aviation relations with this important partner. In the meanwhile, the addition of UPS to the U.S.-China market will provide shippers the benefits of choice and competition that passengers now enjoy, while all the U.S. carriers serving China will be able to expand their services."
Secretary Slater said the United States has proposed to China an expansion of frequencies, designations and additional code-share opportunities during the period 2002-2004, after which the United States would seek a fully liberalized, Open-Skies agreement. Currently, round-trip flights between the two countries are limited to 44 for each country's airlines, with an additional 10 to be added in April 2001.
The department granted UPS six weekly round-trip flights to initiate its all-cargo service to Beijing and Shanghai from Ontario, Calif., and Newark, N.J., via Anchorage, Alaska. In addition, the department granted additional weekly round-trip flights to the three airlines already serving China. United Airlines may add two weekly round-trip flights, and Northwest Airlines and Federal Express one weekly round-trip flight each, to expand their existing U.S.-China services.
The U.S.-China aviation agreement, reached in April 1999, significantly expanded air services between the two countries. In August 1999, DOT awarded a total of 17 new weekly flights to the three U.S. carriers -- Northwest Airlines, United Airlines, and Federal Express -- already serving the market. The agreement added another 10 weekly flights for U.S. carriers and allowed a fourth U.S. carrier to enter the market in April 2001.
Applying for the new right to serve China were American, Delta and Polar Air Cargo, as well as UPS. American, Delta and UPS each requested all 10 of the newly available weekly flights, while Polar sought six. In addition, Northwest, United and Federal Express all sought to add flights to their existing services.
United's additional two weekly flights will be used to expand its current five weekly flights between San Francisco and Shanghai. Northwest will be able to use its additional flight to expand its current passenger service from Detroit, to expand its current all-cargo service from Chicago and Anchorage, or to begin passenger service from Honolulu. Federal Express will use its additional flight to increase its current U.S.-China all-cargo service, under which the carrier serves Beijing, Shanghai and Shenzhen.
The final order, carrier applications and other documents in this case may be obtained via the Internet at http://dms.dot.gov/, docket OST-99-6323.
In a related action, U.S. and Chinese officials met on Oct. 20 and agreed to invite American Airlines and Delta Air Lines, the U.S. carriers that have code-sharing arrangements with Chinese carriers but are not designated for direct service to China, to discuss with their Chinese code-share partners a type of wet lease/code-share arrangement. Under this arrangement, the Chinese carrier would lease a plane and crew from its U.S. code-share partner to operate services authorized for Chinese carriers under the U.S.-China aviation agreement. If agreements to engage in this type of code-sharing can be reached, American and Delta would be able to fly between the United States and China using their own aircraft and codes, allowing substantially expanded services by the two carriers as well as by Chinese carriers. Such agreements would be subject to approval by both governments. Delta and American have told DOT that they are pleased with the new code-share opportunities and intend to work with their Chinese code-share partners to implement them.
The two countries are also recommending to their respective carriers that they coordinate with their code-share partners to reach agreement permitting Delta and American to open ticket offices in Shanghai and Guangzhou to sell tickets on their code-share services. Such agreements would be subject to approval by the authorities in each country.
(end text)
(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
Return to The United States and China.Return to IIP Home Page.