China and the USA are to sign a sweeping liberalisation pact in a deal that will dramatically increase both passenger and cargo service between the countries.
Between this year and 2010, the expanded bilateral will double the number of US carriers flying to China while increasing weekly flights from 54 to 249 in total. Restrictions will be lifted on US market access to any Chinese city, and code-sharing with Chinese airlines is to be unlimited. For all-cargo US flag carriers, 21 additional flights will be allowed this year, while access to all mainland cities and the right to establish hubs are guaranteed.
Chinese airlines, now limited to 12 US gateway cities, are to win access to any city. Northwest and United Airlines, the only major US passenger carriers now allowed to serve the mainland, will be permitted 14 new flights this year, but a flurry of proposals for service is expected for the one new designation allowed next year. American, Continental, and Delta say they are ready to offer proposals.
Eager since losing a bid for China flights in 2000, American applied for Chicago O'Hare-Shanghai Boeing 777 non-stop rights within hours of the agreement being pencilled.
An additional four more carriers, either cargo or passenger, will be allowed access in 2005, 2006, 2008 and 2010. US carriers will add 111 cargo flights and 84 passenger flights by the end of the six-year period.
US officials called the deal "free skies", but noted that talks will resume in 2006 toward full open skies. But limits remain on visas as required by both nations.
For all-cargo carriers, restrictions on hub operations will be relaxed as of 2007. Express parcel operators FedEx and UPS have battled over the China market since UPS won rights for service there in 2000. FedEx has said it could transfer its regional hub from Subic Bay in the Philippines to the new Guangzhou Baiyan airport in southern China. Polar Air Cargo is another US cargo operator expected to make a bid for service.
China's designated airlines for US services are Air China, China Cargo Airlines, China Eastern and China Southern Airlines. Some of the country's smaller carriers, namely Hainan and Shanghai Airlines, have also expressed interest in serving the USA.
Source: Airline Business
