"Chinese companies are taking a back seat in the competition to tap the Sino-US aviation market, due to their relatively weaker position. Although the new Sino-US aviation pact signed in 2004 is supposed to grant carriers from both countries equal business development opportunities, Chinese airlines cannot fight their US counterparts on an equal footing in terms of business expansion," Liu commented.

The new round of Sino-US aviation negotiations expected to begin in late August and early September were postponed because of the gap between US and Chinese carriers, said an industry insider.

"Under the current market situation, local carriers have a hard time competing against global giants such as Continental. That is why US airlines are enthusiastic to fly to China, while Chinese carriers are hesitating to open more flights. For local airlines, more flights may mean more losses if they cannot get enough passengers," Liu added.

China Eastern Airlines, one of the country's top three carriers, is scheduled to fly to New York from Shanghai by the end of this year. Four to five flights a week are planned on the new route.

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