The China-US bilateral signed in December is the culmination of a sustained and successful effort by Beijing to ratchet back US dominance.
It resists pressure from Washington for big capacity boosts. China has long complained that loads did not justify more capacity and that US airlines already carried a disproportionate share of the traffic. During the winter months, Air China and China Eastern operate only nine weekly frequencies, even though the bilateral allows for 27.
Beijing agreed to allow three more weekly frequencies this year, with a further two permitted from 1998, and dropped objections to additional frequencies authorised under the last bilateral. Washington had awarded those frequencies over a year ago, but Beijing had thwarted efforts by Northwest Airlines and FedEx to launch them. The US also secured broad codesharing rights and five new gateways over the next two years.
But China successfully stonewalled on new frequencies for all-cargo carriers, and FedEx had to settle for clearance to operate the four it bought from Evergreen International last year. The new accord also excludes fifth freedom sectors for FedEx until 1998. 'After January 1, 1998, FedEx will need to file a schedule with the Chinese and Japanese governments for use of fifth freedom rights,' confirms FedEx Asia-Pacific.
In return, Beijing gains access for a third Chinese carrier to the US market. Although Beijing has not yet selected the new carrier, it is widely thought to be China Southern and indications are that the Guangzhou-based airline will select San Francisco as its first US gateway.
David Knibb
Source: Airline Business
