China, U.S. Sign Aviation Agreement

The signing of China-US aviation agreement to promote bilateral travel and tourism cooperation will increase two-way flights between the two countries by 460 percent.

This follows the agreement signed in December 2004 to open the US to Chinese tourists. Karan Bhatia, U.S. assistant secretary for aviation and international affairs, said, the agreement was to bring air services to the level of growing demand stemming from rapidly expanding trade and tourism between the two countries.

Under the 2006 agreement signed, the current 54 flights a week will rise to 249 flights over the next six years, and airlines permitted to run services between the US and China from four to nine.

The agreement also provides for US airlines to add new flights in 2006, 2008, 2010, and build hubs in China from 2007. Limitations on flights to 12 US destinations and five Chinese cities will be lifted, with United and Northwest expected to benefit from the new agreement.

Northwest Airlines is expected to offer seven non-stop flights on its Detroit-Guanghou and Chicago-Shanghai routes soon.

Reports from China do not indicate which Chinese airlines will benefit from the agreement, but it is rumored that Beijing is in the middle of consolidating the aviation industry into three major carriers.