UPS Wins Right to Operate Direct Flights between US and China

US Transportation Secretary Rodney Slater announced that United Parcel Service (UPS) has been selected to operate direct flights between the US and China, marking a significant victory for the company. This decision is part of the US government's effort to expand air services between the two countries, with the ultimate goal of full liberalization. UPS will begin operating direct flights in April 2001, stepping up the pressure on its rival, FedEx.

Key Takeaways:

• UPS won the right to operate direct flights between the US and China after a competitive bidding process among four US carriers.
• The US Transportation Department has invited public comment and objections to the tentative decision for the next three weeks.
• If approved, UPS will operate six weekly, all-cargo round-trip flights to Beijing and Shanghai from Ontario, California, and Newark, New Jersey, via Anchorage, Alaska.
• FedEx, the existing direct service carrier, has expressed concerns that UPS's entry will be "difficult and expensive to play catch-up."
• The decision marks a significant expansion of air services between the US and China, with the ultimate goal of full liberalization.

Statistics:

• The US Transportation Department has granted additional weekly round-trip flights to the carriers already flying direct to China, including FedEx, Northwest Airlines, and United Airlines.
• Two US carriers, American Airlines and Delta Air Lines, have been invited to discuss code-sharing with Chinese partners to expand their access to the Chinese market.
• UPS plans to begin direct flights in April 2001, increasing competition in the air cargo market.
• The decision is part of the US government's effort to expand US-China air services, with the goal of reaching full liberalization.

Sources:

• "UPS Wins Right to Fly Direct US-China Flights." Andrew Hill, New York Times, January 28, 2001.
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