United's nonstop bid to Shanghai hits turbulence

In an eagerly waited announcement, the Transportation Department said it approved two new U.S.-China flights that would start next year and recommended four more for 2009.

As expected Delta Air Lines Inc., which has no nonstop flights to China, was approved to offer flights from Atlanta to Shanghai in 2008 while United won the right to start direct flights between San Francisco and Guangzhou next spring.

But Transportation officials declined to recommend Chicago-based United’s proposal to start a Los Angeles International — Shanghai service in 2009. The UAL Corp. subsidiary would have been the first U.S. carrier to offer a direct flight to any city in China from Los Angeles International .

Instead, the federal agency proposed Chicago-Beijing service by American Airlines, Newark-Shanghai service by Continental Airlines, Detroit-Shanghai flights by Northwest Airlines and a Philadelphia-Beijing route by US Airways.

Transportation Department spokesman Bill Mosley said the final decision on the four flights in 2009 will be made after further public comment. United’s proposal hasn’t been ruled out, he said.

Still, the Los Angeles International-Shanghai service is expected to face an uphill battle. That’s because so many flights to Shanghai already have been approved or proposed, and United has won six nonstop flights to China, including one from San Francisco to Shanghai.

United said it was happy with winning the San Francisco-Guangzhou service but disappointed with prospects that it was not likely to start the Los Angeles International-Shanghai flights in 2009.

“We thought it made the most compelling case,” Mike Whittaker, United’s senior vice president for international and regulatory affairs, said of the Guangzhou route. “It’s the largest unserved city to China.”

Whittaker said United might resubmit the Los Angeles International-Shanghai route for 2010 when another three flights to China are slated to be added.

Business travelers in Southern California had been hoping for the new option. All nonstop flights to China from Los Angeles International are offered by Chinese carriers, and some American travelers have complained of service, delays and other problems.

U.S. airlines currently operate only seven nonstop flights to China. Although demand is outstripping available seats, China has been protective of its domestic airlines and has limited direct flights by foreign carriers. It remains one of the few countries with such restrictions.

Under a U.S.-China pact reached in May, U.S. carriers will be allowed to operate six new nonstop flights to China over the next three years. Two will be awarded for next year and four more in 2009. In all, seven airlines proposed 11 routes.

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