China and the United States are expected to start a new round of
talks on expansion of air services between the two countries this
month, a senior US airline official said.
The talks, regarding the expansion of civil aviation rights,
will take place this month, Athar Khan, managing director for the
Asia Pacific region of American Airlines, said during a recent
interview.
The General Administration of Civil Aviation of China, the
nation's industry regulator, would not confirm the information.
However, Khan said, the talks are expected to allow one more US
carrier to fly to China next year although he admitted he could not
be specific.
"I wish I had details, as well, but it remains a secret as the
conversations are to be held between the two governments," he
said.
China and the United States signed an agreement in July 2004 to
allow the number of weekly return flights between the countries to
increase from 54 to 249 by 2010. It also allows five additional
airlines from each country to serve the US-China market.
Khan's company is one of the two airlines that have been
authorized to fly to China in accordance with the deal.
United Airlines launched daily non-stop flights between Shanghai
and Chicago last November. American Airlines, one of the world's
largest, will also begin a daily non-stop service between Chicago
and Shanghai on April 2.
"We have been anticipating the opportunity to participate in the
growing China market for five years," Khan said.
He praised the expansion as good for passengers as they will
have more airlines to choose from.
Insiders have worried that China's opening its sky to US
carriers will bring heavy pressure to domestic airlines.
"We work closely with China Eastern Airlines, our code-sharing
partner, and we have our best dealings with them," Khan said. "So,
Chinese carriers will mature, will compete on the world level and
will benefit from competing with worldwide leading carriers."
Currently, Chinese airlines can handle only 80 percent of the
approved capacity of flights to and from the United States, whereas
US airlines are looking to increase flights.
However, Li Jiaxiang, chairman of Air China, said the
liberalization of the market will bring more opportunities than
challenges.
China has large potential in outbound travel, Li said at a
recent seminar on Sino-US cooperation in Beijing. He added that the
signing of the memorandum of understanding on tourism partnership
between the two countries in 2004 must serve as momentum for the
aviation market.
He urged the airlines of the two countries to cooperate more in
marketing and code-sharing to improve network and avoid vicious
competition.
(China Daily March 11, 2006)