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Continental gets support for Shanghai route
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Posted on Oct 17 2006
[B]NEW YORK[/B]—Continental Airlines submitted its rebuttal exhibits yesterday to the U.S. Department of Transportation in support of its case to provide daily, nonstop service to Shanghai, and to offer through flight service between Cleveland and Shanghai.
The route, New York/Newark-Shanghai, is the largest China market not currently served by a U.S. carrier.
Continental said the proposals filed by American, Northwest and United should be denied, and DOT should immediately award Continental the seven weekly frequencies that come available in 2007 so that Continental can begin its new Shanghai service in March of next year. Continental cites the following regarding its application:
More consumers win: The New York/Newark-Shanghai market is nearly five times larger than the Dallas/Ft. Worth-Beijing market; is more than two times larger than the Detroit-Shanghai market; and is half again as large as the Washington-Beijing market.
– Competition is enhanced: United holds a near monopoly on U.S.-China nonstop routes as it operates four times the number of nonstop U.S.-China frequencies as any other airline, operates two-thirds of the U.S.-China nonstop frequencies operated by U.S. carriers, and already provides twice daily nonstop service to Shanghai and Beijing. With all of these route authorities, United could have started Washington, D.C.-Beijing service years ago—and it doesn’t need to deprive the more numerous New York/Newark-Shanghai passengers of the nonstop service they deserve.
– U.S. economy benefits: The nationwide economic stimulus generated by new, daily, nonstop service between two of the world’s largest financial centers is far superior to what American, Northwest or United bring to the marketplace. [B][I](PR)
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