DOT Picks United for Service to China

WASHINGTON -- United Airlines won tentative approval on Tuesday to operate the first nonstop daily flight between Washington and Beijing, a 14-hour trip that links the countries' capitals as their economies become more intertwined.

The Department of Transportation's final OK would give UAL Corp.'s United a route coveted by executives and government officials and potentially worth $200 million a year.

Washington-based fliers who make regular trips to Beijing applauded the news.

"It means that I probably save two to three hours in my flight," said Richard Bush, a senior fellow at the Brookings Institution. "Anything that gets you into the hotel ahead of the evening rush hour (in Beijing) is great."

United did not immediately say how much it would charge for the flight. Existing fares for travel between Washington and Beijing start at under $1,000 for economy class and can top $15,000 for first class.

If it wins final approval from the government, the Elk Grove Village, Ill.-based airline can begin nonstop service between Washington Dulles International Airport and Beijing's China Peking Capital Airport on March 25.

"It's overdue," said James Millward, an associate professor of Chinese history at Georgetown University. "It shortens the time and shortens the fatigue that is part of international travel."

United beat out AMR Corp.'s American Airlines, which sought to fly between Dallas/Fort Worth and Beijing; Continental Airlines Inc., which applied for service between Newark, N.J., and Shanghai; and Northwest Airlines Corp., which applied for Detroit-Shanghai service.

The Transportation Department said United's rivals have 14 days to file objections.

The new route would strengthen United's already-extensive Pacific network and provide an injection of cash when the carrier is still trying to regain its former financial strength after a three-year bankruptcy restructuring that ended in February.

Airline analyst Roger King estimated that the route could bring United roughly $200 million a year in additional revenue, based on daily 16,000-mile round-trip flights. The flights, he said, are certain to draw executives and politicians willing to pay business-class fares, which can cost as much as $10,000.

"It further cements their dominant position among the American carriers in Asia," said King, airline sector analyst at CreditSights Ltd.