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Volume 14,Issue 3 Autumn 2012

Chinese airlines can benefit under new accord with US

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Minister Yang Yuanyuan of the Civil Aviation Administration of China said Chinese airlines should take advantage of the additional routes between China and the United States to remain competitive. In May, China and the US agreed to double the air routes by 2012. However, Yang said the US should simplify its visa policy for Chinese citizens to support balanced aviation development. The new agreement increases the number of flights to 70 per week each for China and the US between now and 2012. Central China will be fully opened under the new agreement. China and the US also agreed to start negotiating for an open skies agreement in 2010. The air cargo market, on the other hand, will not be fully opened until 2011. The US Department of Transportation says there will be a total of 23 daily passenger flights by 2012 by American airlines to Beijing, Shanghai and Guangzhou. Seven Chinese airlines currently operate routes to the US. Air China, China Eastern Airlines and China Southern Airlines operate passenger routes, and Shanghai Airlines and three other carriers operate cargo routes. Analysts are optimistic that the new agreement will benefit Chinese airlines.

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