Continental Airlines to Fly New Route to China

Wed. September 24, 2008; Posted: 04:34 AM

The direct flights focus on businesspeople, aiming to adapt to the flexible arrangements of these passengers, who are able to fly to more than 60 cities in the US and Canada with the help of Continental Airlines' aviation hinge in New York's Newark Liberty International Airport.

Boeing 777-200 will be used for the route, and make one flight per day, whose particularity and uniqueness boosted Continental Airlines' determination to start flights between Shanghai and New York even after its peers United Airlines and American Airlines put off similar plans in succession.

The leading airway has not given itself up in the battle under pressures of hovering oil prices and large demands in 2008. Instead, it took a string of steps such as saving oil and controlling cost.

Currently, the company has already operated airlines from New York to Hong Kong and Beijing. The seat kilometer utilization of the two airlines is very high, about 80% to 90%, owing to robust travel demands of businesspeople in Beijing and Hong Kong. Shanghai is an economic powerhouse. Surely, there are larger demands.

Thus, Continental Airlines will become the sole airway to operate daily direct flights between the world's two important financial centers, as well as between China's three largest cities and New York.

Though worldwide economic slip since the beginning of 2008 is believed to affect businesspeople's travel arrangements, Continental Airlines is bullish on the future aviation market, because of its excellent performance in the trans-Atlantic, Middle and South America markets.

Mark Erwin firmly believes that China's GDP will keep growing in 2009. In addition, the 41st World Expo will be held in Shanghai from May to October 2010. Definitely, there will be large passenger flows to the city by then.

Actually, as early as in 2006, Continental Airlines applied to the US Department of Transportation for starting daily direct flights between Shanghai and New York, facing severe competitions with United Airlines, Northwest Airlines, and American Airlines. To make preparations, the company purchased two Boeing 777-200.

China Eastern Airlines Co., Ltd. (SHSE: 600115) was one-up and started service on the route in December of the year, and remained a monopoly for the next two years. However, China Eastern operates four flights per week, and mainly serves tourists.

Headquartered in Houston of Texas, Continental Airlines is a member of SkyTeam Alliance.

(USD 1 = CNY 6.82)

From dycj.ynet.com, Page 1, Tuesday, September 23, 2008 info@SinoCast.com

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