AP
US Airways to Apply for China Service
Friday February 9, 5:39 pm ET US Airways Wants China Service, Asks for Hold on Delta Bid
TEMPE, Ariz. (AP) -- US Airways Group Inc. on Friday said it will apply to offer nonstop service to China and asked the U.S. Department of Transportation to put off considering a request for similar service by Delta Air Lines Inc. until its application can be considered.
The request pits US Airways against Delta just a week after the Tempe-based company's effort to buy the bankrupt airline for $9.8 billion was rejected by Delta's creditors committee.
Delta applied for federal approval to fly between its Atlanta base and Shanghai on Jan. 19, saying in its application that it wanted to begin flights by March, 2008.
US Airways said it has been considering a route to China "for quite some time" and is now working with U.S. and Chinese airports it is considering serving. It did not disclose the cities it may serve.
The transportation department reviews proposals for service to China under a 2004 agreement that called for 195 new weekly flights phased in over a six-year period. United Airlines won final approval for a nonstop route from Washington to Beijing this week after an aggressive competition
Airlines want the routes to tap into the booming Chinese economy.
US Airways urged the government to follow its previous practice of comparing competing proposals before awarding routes.
"There is no reason to deviate from that longstanding practice now, more than a year before the frequencies at issue even become available," US Airways said in its filing.
Delta issued a statement saying it was eager to "compete vigorously" for the route.
"We filed the first request of any airline for these frequencies," the Delta statement said. "We are confident the DOT will agree that our proposal to bring the first ever China service to the Southeastern United States is superior to any other proposal."
US Airways shares fell $1.17, or 2 percent, to close at $58.14 in Friday trading on the New York Stock Exchange. The stock has ranged between $29.55 and $63.27 over the past year.
US Airways to Apply for China Service
Friday February 9, 5:39 pm ET US Airways Wants China Service, Asks for Hold on Delta Bid
TEMPE, Ariz. (AP) -- US Airways Group Inc. on Friday said it will apply to offer nonstop service to China and asked the U.S. Department of Transportation to put off considering a request for similar service by Delta Air Lines Inc. until its application can be considered.
The request pits US Airways against Delta just a week after the Tempe-based company's effort to buy the bankrupt airline for $9.8 billion was rejected by Delta's creditors committee.
Delta applied for federal approval to fly between its Atlanta base and Shanghai on Jan. 19, saying in its application that it wanted to begin flights by March, 2008.
US Airways said it has been considering a route to China "for quite some time" and is now working with U.S. and Chinese airports it is considering serving. It did not disclose the cities it may serve.
The transportation department reviews proposals for service to China under a 2004 agreement that called for 195 new weekly flights phased in over a six-year period. United Airlines won final approval for a nonstop route from Washington to Beijing this week after an aggressive competition
Airlines want the routes to tap into the booming Chinese economy.
US Airways urged the government to follow its previous practice of comparing competing proposals before awarding routes.
"There is no reason to deviate from that longstanding practice now, more than a year before the frequencies at issue even become available," US Airways said in its filing.
Delta issued a statement saying it was eager to "compete vigorously" for the route.
"We filed the first request of any airline for these frequencies," the Delta statement said. "We are confident the DOT will agree that our proposal to bring the first ever China service to the Southeastern United States is superior to any other proposal."
US Airways shares fell $1.17, or 2 percent, to close at $58.14 in Friday trading on the New York Stock Exchange. The stock has ranged between $29.55 and $63.27 over the past year.