In allocating new US frequencies to China, Washington has chosen to adhere to the parity principle, rather than favouring an application that would have opened an important Chinese economic centre.
The US-China bilateral allows incumbent US carriers to add seven new weekly frequencies from 1 January 1995. All three incumbents - Northwest, United, and Evergreen International - applied, with Evergreen asking for four and Northwest and United applying for all seven each.
Northwest argued its case to the US Department of Transportation on the issue of addressing the pre-award imbalance - United held 14 frequencies against four for Northwest. In its filing, Northwest criticised United for even seeking more services, describing United's request as 'an outrageous attempt . . . to establish hegemony in the US-China market.'
United claimed its proposal for daily flights to Guangzhou, the capital of Guangdong Province, a route not currently served, was so superior that it should outweigh any parity concerns. The Chigaco-based carrier said the Beijing and Shanghai markets were already well-served, and stressed the need for links to Guangdong Province, 'the home of more than 60 million of the most affluent people in the nation.'
Evergreen received two new frequencies and Northwest the remaining five. 'An award of additional frequencies . . . will clearly enable Northwest to be a more effective competitor in the US-China market,' the DOT argued in making the decision.
There was no mention of the fifth freedom objections Japan could raise with Northwest's proposed Tokyo stop enroute to Shanghai and Beijing.
There was no mention of the fifth freedom objections Japan could raise with Northwest's proposed Tokyo stop enroute to Shanghai and Beijing.
Source: Airline Business
