Originally published Wednesday, January 10, 2007 at 12:00 AM
D.C.-Beijing route awarded to United
United Airlines won U.S. approval for the first nonstop flight from Washington, D. C., to Beijing, beating three competitors for a route...
Bloomberg News
United Airlines won U.S. approval for the first nonstop flight from Washington, D.C., to Beijing, beating three competitors for a route that may generate as much as $100 million in annual revenue.
United can begin daily flights between Dulles International Airport and Beijing on March 25, the Transportation Department said Tuesday.
Northwest Airlines, American Airlines and Continental Airlines also sought the award in a competition marked by aggressive lobbying.
The route adds to United's presence in China, the world's fastest-growing major economy and a country the carrier has served for 20 years.
It also fits United's plan to fly more high-dollar international routes that appeal to business travelers.
"That's a very big deal for United," said Darryl Jenkins, an independent airline consultant.
"The demand for the travel is growing faster than supply by a long shot, so you're charging quite a bit for first-class and business-class fares, and all those seats are always full," Jenkins said.
United's flights will benefit the most passengers, the department said. The airline will offer 235,000 new seats between the countries each year.
"The goal is to do everything in our power to expand service, destinations and frequencies between the United States and China," Transportation Secretary Mary Peters said in a statement.
United Vice President Michael Whitaker said his carrier's bid used a Boeing 747-400, now the largest commercial aircraft, helped win the new route. "Our current China flights are running 80 percent full year-round," he said.
United expects the additional flights to help it compete against 13 other carriers flying into China. "We think we'll win a good share of that business," Whitaker said.
The aggressiveness of the carriers' lobbying efforts was new to the competition for approval on routes, consultants who watched the process said.
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The airlines spent millions of dollars to generate support for their bids.
American won support from 30 U.S. senators and 92 members of the House of Representatives.
The China route is worth as much as $100 million in annual revenue, industry consultants have said.
A 2004 U.S.-China aviation treaty set out when new flights would be added.
"Winning this highly competitive route demonstrates what we can do when we build on our strengths and work together as one company," United Chief Executive Glenn Tilton told employees in a telephone message.
Continental wanted to fly between New Jersey's Newark Liberty Airport and Shanghai, while Northwest applied to serve Shanghai from Detroit.
American sought to fly between Dallas/Fort Worth International Airport and Beijing.
Northwest, Continental and American all said in statements that they were disappointed not to get the route. Northwest urged regulators to secure more China flights in talks this month.
Copyright © 2007 The Seattle Times Company
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