Top Biz News

Airline hopes for Shanghai flight

By Wang Yu (China Daily)
Updated: 2006-09-30 08:53

Larry Kellner, chairman and CEO of Continental Airlines, has expressed his strong confidence in the carrier's application to the US Department of Transport (DOT) for another Sino-US direct daily flight linking metropolitan New York/Newark and Shanghai, China's commercial hub.

"From our experience, the DOT will make the final decision based on two key criteria  one is whether the new flight can encourage competition and prevent monopoly, the other is whether the new route will benefit most people. We meet both standards," Kellner explained.

Compared with United Airlines and Northwest Airlines, Continental is a latecomer to the Chinese mainland market, having just launched its daily Beijing-New York flight in June last year.

Rather than United Airlines and Northwest Airlines, more opportunities should be granted to US carriers that do not have a strong presence in China. Only in this way can competition be encouraged, Kellner said.

Industry insiders predict that Continental has a good chance of winning the contest for the new route, with the airline having recently purchased two Boeing 777 airliners to fly on it.

"We know there is substantial demand for the Shanghai-New York service, which will offer competitive benefits to customers both in China and the United States," Kellner said.

Currently, there are no non-stop flights from the northeastern United States to Shanghai, despite the route's great business potential.

The New York/New Jersey area has a far larger population of Chinese-Americans than any of the other cities seeking a new China route. Continental's route application has already received backing from the Port Authority of New York and New Jersey, the Manhattan Chamber of Commerce and New Jersey Governor Jon Corzine.

According to Reuters, the carrier has received more than 15,000 letters supporting its application, and this is the major reason Continental Airlines is confident that it will be approved by the DOT.