Posted on: Wednesday, February 23, 2005
Hawaiian rejected for China route
Associated Press
DALLAS — The federal government yesterday gave tentative approval to American Airlines and Continental Airlines to begin passenger service from the United States to China, while rejecting similar requests from Hawaiian Airlines and several other carriers.
American, a unit of AMR Corp., said it would begin flying from Chicago to Shanghai in April 2006, while Continental Airlines Inc. said it would fly between Newark, N.J., and Beijing but did not announce a date.
UAL Corp.'s United Airlines and Northwest Airlines Corp. already fly between the two countries.
The U.S. Department of Transportation turned down requests by Hawaiian, Delta Airlines and North American Airlines to enter the U.S.-China passenger market in either 2005 or 2006.
"We're disappointed in today's news, but China remains an aspiration of Hawaiian's and we will continue to pursue China service," said Keoni Wagner, a spokesman for Hawaiian Airlines.
The Department of Transportation also awarded new cargo service to four carriers: FedEx Corp., Northwest Airlines Corp., Polar Air Cargo and UPS Inc.
The agency said it would issue a final decision on the awards after reviewing comments on its proposals. The comments are due March 4.
China and the United States signed an aviation agreement last July to expand service between the two countries and drop most restrictions on each other's airlines.
The pact increases the numbers of passenger and cargo flights allowed by Chinese and U.S. carriers in stages over the next six years, rising from the current 54 per week to 249. The deal is intended to ease shortages of seats that have prompted complaints from tourists and business travelers.
American had lined up significant support in Congress, especially among lawmakers from Texas and Illinois. The flights will link China to Chicago's O'Hare Airport.
Larry Kellner, Continental's chairman and CEO, said nonstop flights to Beijing from the New York area would be a boon to business travelers. Continental launched daily service between Newark and Hong Kong in March 2001.
The department said the most serious shortcoming in service was in New York, explaining why it chose Continental.
