New China routes good news for Boeing

Boeing Co. 777 and 787 jets will lead the way as airlines open new routes between the United States and China.

Both United Airlines and Delta Air Lines can begin offering nonstop service between the two countries in 2008. The U.S.-based carriers intend to use Boeing 777 planes on their new routes. The U.S. Department of Transportation also tentatively gave four other carriers U.S.-China routes, including Northwest Airlines, which plans to use a Boeing 787 for service beginning in 2009.

U.S. Transportation Secretary Mary Peters made public the new routes in a press release Tuesday. The announcement comes after the Chinese and U.S. governments reached an agreement in July to double daily flights between the two countries over the next five years. The signed deal also increases cargo flights.

“By bringing China and the U.S. one step closer, we increase our ability to compete, boost our success in the global marketplace, and make international travel for all passengers easier and more affordable,” Peters said.

The deal also presents opportunity for jet makers such as Boeing and Airbus. The routes awarded Tuesday involve major U.S. carriers — most of which have not placed significant commercial plane orders over the past several years. For their part, Boeing officials have said they expect to see orders from the U.S. legacy carriers over the next few years.

One of those legacy carriers, United Airlines, will fly a Boeing 777 between San Francisco and Guangzhou, in the southern province of Guangdong. The new routes bring United’s total daily routes between the United States and China to six.

“United Airlines is honored to be selected as the first U.S. carrier to provide nonstop service between San Francisco and Guangzhou, important cities in the world economy,” said Glenn Tilton, United’s chief executive, in a prepared statement.

But Transportation officials declined to recommend Chicago-based United’s proposal to start service from Los Angeles International to Shanghai 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. 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.

Delta’s chief executive Richard Anderson said the carrier purchased two new 777s to use on its new route from Atlanta to Shanghai. In 2008, Delta will introduce seats that lie completely flat on its Boeing 777 fleet as well as new in-flight entertainment systems.

“Delta’s new flights to China will fill a critical void in air travel today by providing the 65 million residents of the Southeast with direct access to the world’s fastest growing economy,” said Richard Anderson, Delta’s chief executive.

U.S. Airways officials said the carrier put an Airbus A340 into use on its new route between Philadelphia and Beijing in 2009. American Airlines also was granted a route in 2009 but did not indicate the aircraft that it will fly.

Northwest Airlines could be the first U.S. carrier to fly Boeing’s 787 to China. The Minnesota-based airline tentatively won the right to fly between Detroit and Shanghai, beginning in March 2009.

Boeing is scheduled to deliver the first 787 Dreamliner next May to Japan’s All Nippon Airways. The plane maker, however, now faces a tight time line after pushing back the first flight of the 787 by several months.

Northwest is one of two major U.S. carriers to order Boeing’s new Dreamliner. Continental Airlines, which has orders for 25 787s, also tentatively received a new route between New York and Shanghai.

Boeing has won more than 700 orders for its 787. Five China-based carriers have ordered more than 50 Dreamliners. The aerospace company sees tremendous market potential in China, estimating that Chinese airlines will require roughly 3,400 new commercial jets over the next two decades. The company predicts about 22 percent of those will fall into the same size category as Boeing’s 777, 787 and 767 jets.

On Tuesday, Boeing’s stock rose $1.88 to close at $104.93. That’s nearly a $28 jump from Boeing’s 52-week low — a price the company’s stock hit a year ago today.

The Associated Press contributed to this report.

Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.

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