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U.S., China Bilateral Aviation Pact Allows Direct Flights : Carriers: Agreement, signed Saturday, also raises number of Federal Express weekly flights to East Asian country.

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From Times Wire Services

The United States and China have signed a bilateral aviation pact, allowing the first nonstop service by a U.S. carrier to China, U.S. Transportation Secretary Federico Pena said.

The agreement, signed Saturday in Beijing, opens the door for U.S. airlines to fly to one of the fastest-growing markets in the world, U.S. officials said. The agreement also lets package-delivery company Federal Express Corp. increase the number of flights a week to China to four from two.

“It means more choices and better fares for consumers and greater economic opportunities with our trading partners,” Pena said.

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Currently, U.S. airlines cannot fly directly to Chinese cities, nor can Chinese airlines fly directly to the United States.

Under the agreement, Northwest Airlines Inc. will be allowed to begin nonstop service between Detroit and Beijing as early as April. Other U.S. airlines can now also begin talks with the Chinese government to set up routes between U.S. cities and China, Assistant Transportation Secretary Patrick Murphy said. The agreement also lets China Southern Airlines, based in Guangzhou, fly nonstop to the United States.

The agreement allows U.S. and Chinese airlines to set up code-sharing arrangements, whereby the airlines can book each other’s passengers on connecting flights, expanding the reach of the airlines to more cities.

The agreement caps nearly two years of negotiations between U.S. and Chinese officials.

Federal Express, which is trying to expand its overnight package-delivery service throughout Asia, also won some points. The Memphis, Tenn.-based company wanted to fly five times each week to China, but had to settle for four.

“The Chinese government held firm on this point,” Murphy said.

Federal Express executives couldn’t be reached for comment.

The agreement caps a successful year for the Transportation Department, which has secured aviation agreements with several Asian countries, including India, the Philippines, Hong Kong and Macao, Pena said.

Asia is viewed as the fastest-growing aviation market. Currently, U.S. carriers bring in about $6.8 billion on Pacific routes, compared with $7.1 billion for Atlantic routes.

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