US-China air agreement
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As domestic service in the US has become busier with low-cost competitors, US carriers are seeking new international business.
With United Airlines, Continental Airlines, American Airlines and Northwest Airlines currently offering services to China, the US will be designating another passenger carrier later this year and two more in 2009.
The announcement of the new agreement was welcomed by Delta and American Airlines and it is expected both carriers will bid for the additional routes.
The number of daily round-trip flights will also increase from the current 10 within five years to 23 under the new agreement, with one flight assigned this year, four in 2009, three in 2010 and two in 2011 and 2012.
At the US-China economic forum, the Transportation and Treasury departments advised FedEx and UPS would also benefit as they expect the deal would eliminate almost all barriers to cargo service by 2011.
Transportation secretary Mary Peters said “piece by piece, we are making it easier, cheaper, and more convenient to fly people and ship goods between our two countries.”
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