U.S., China reach new aviation services agreement

[MiAAmi]

WASHINGTON, May 23 (Reuters) - The United States and China reached a new aviation services agreement on Wednesday that would more than double the number of passenger flights between the two countries by 2012, U.S. transportation officials said.

The Transportation Department announced at the conclusion of a U.S.-China economic forum that the deal would also eliminate nearly all barriers to cargo service by 2011.

The United States will designate three additional passenger carriers to fly to China -- one in 2007 and two in 2009.

The two sides also agreed to resume negotiations in 2010 on a timetable for full liberalization of the aviation sector, or "open skies."

 

[AirLUVer]

Until AA works out a new contract ammendment with the APA for Ultra Long Haul flying, this will have zero impact in the short term

 

[FWAAA]

Until AA works out a new contract ammendment with the APA for Ultra Long Haul flying, this will have zero impact in the short term

As long as AA doesn't try for DFW-China again, that won't be a factor; ORD-China doesn't exceed the current agreement's duty limits.

DFW-China is a loser from the get-go anyway, much like ATL-China. Simply not enough O&D to bother.

But that won't stop DL (and probably AA) from applying for those cities again.

This might be good for AA, but then again, the good part about China was the restrictive bilateral that practically guarantees profits. With lots more frequencies (or, heaven forbid, open skies), the fares will fall. Great for consumers. Maybe not so good for AA (or NW, UA and CO).

One thing's for sure: No need at all to buy NW now. Too bad - I was looking forward to once again seeing shiny 747s with red, white and blue stripes (until AA could dump them and replace them with 777s, that is).

 

[flyhigh]

One thing DFW has that ORD doesn't have as much of (virtually none in AA's case) is Latin American feed. While DFW individually might not have the largest O&D traffic, couple it with some cargo and MCO traffic and you could probably make a decent profit. Conversely, ORD has a lot of competition which could diminish profits there.

As for the APA problem, I think at some point, especially if CO goes for an IAH run and doesn't have the types of restrictions APA wants, it will be hard for them to continue the fight. Obviously they can, but strangling the goose for your cause just isn't the way to win. Cutting those opportunities is not only hurting their job growth, but that of everyone else as well. While not other group is paid in the same way, having another overnight a/c (an int'l 777 at that) means more mechanics are needed and maybe a new crew cheif for them (simplistic I know, but making the point) and more F/A's which means more options..and so on.

 

[lpbrian]

I still think an LAX-China flight makes the most sense for AA. No US carrier flies to China from LAX. LA probably has more O&D than all the other proposed gateway cities combined.

 

[donttouchthebeauty]

I still think an LAX-China flight makes the most sense for AA. No US carrier flies to China from LAX. LA probably has more O&D than all the other proposed gateway cities combined.

UA flies LAX - HKG (Hong Kong)

 

[NewHampshire Black Bears]

A couple of things for AA to consider(to china).

The earliest AA could get a new route, is the "single" award in 08'. As much as ATL/China is somewhat questionalable,(it has to go to a carrier that does NOT currently fly to china) DL is a 99% "shoe in"(in 07') to get it over US !!!!!!!

AA (potential 08') application "could be" be ORD/China's 3-rd largest city .
If 08' fails, they'll get a 09' award.

(perhaps) AA biggest concern IS do they have enough 777's.
If not, start making plans NOW to "line up" getting them.
(I'd get my order in for a 1/2 dozen 777-200LR "worldliners", because IMHO,AA next application (after ORD) should be JFK/PEK.

Also, AA might benefit (if they are the first carrier to do so) to fly NON-STOP to China's 3rd largest city(which I can NOT spell) from either ORD or DFW.

?????????

NH/BB's

ps,
actually, the more I ponder "it", why not make the 08' application ORD/to "CHINA-3rd largest". One thing for sure, the Chinese may lobby the FEDS(for AA), for "that" award, then let AA go for JFK/PEK, in 09', Irregardless of whatever CO is "doing across the River"

Think of it. AA having JFK/LHR...JFK/NRT...and JFK/PEK .
Pretty Impressive, I think !!

 

[FA Mikey]

The next award can go to a new entrant, but is not required. Every carrier will have an application pending for the next opening.

 

[Kev3188]

Also, AA might benefit (if they are the first carrier to do so) to fly NON-STOP to China's 3rd largest city(which I can NOT spell) from either ORD or DFW.

?????????

NH/BB--

Are you talking about Guangzhou (CAN)?


Interesting side note: NW recntly stopped freighter service to HKG, and now goes NRT-CAN non stop.

 

[NewHampshire Black Bears]

NH/BB--

Are you talking about Guangzhou (CAN)?
Interesting side note: NW recntly stopped freighter service to HKG, and now goes NRT-CAN non stop.

///////////////////////////////////////////////////////////

YUP KEV3188.

Thats the one. And thank you !!!!!!!!!!!!!

NW's decision to go there(to me) speaks volumes about my point.

By the way, is'nt ...CAN , the code for CANTON China ??
Did they (possibly) change the name of the city.(like a Bombay to mombai(SP?) ???

NH/BB's

 

[Kev3188]

By the way, is'nt ...CAN , the code for CANTON China ??
Did they (possibly) change the name of the city.(like a Bombay to mombai(SP?) ???

NH/BB's

They did...sort of. Canton is an older English name for Guangzhou.

 

[donttouchthebeauty]

I am almost posititve that will be the next route UAL will apply for.. Either ORD or SFO CAN - Lets just say the buzz is out.

 

[BuffaloJoe]

They did...sort of. Canton is an older English name for Guangzhou.

Oh OK, I thought Guangzhou was a Chinese city I never heard of that became known. Now I know what happened to Canton.

 

[boxer]

Oh OK, I thought Guangzhou was a Chinese city I never heard of that became known. Now I know what happened to Canton.

Haven't we all enjoyed Guangzhou style Chinese at our corner take out?

 

[BuffaloJoe]

Haven't we all enjoyed Guangzhou style Chinese at our corner take out?

Never tried it, I always order the Chicken with Garlic Sauce or Chicken Lo Mein. I am not an adventurous eater with Chinese food. I saw that name before, just never tied it in with Canton. Does this mean that the Pro Football Hall of Fame will be in Guangzhou, Ohio now?