U.S. DOT GRANTS UPS TENTATIVE U.S./CHINA AIR RIGHTS

U.S. DOT GRANTS UPS TENTATIVE U.S./CHINA AIR RIGHTS       The U.S. Department of Transportation has granted tentative approval for integrated carrier United Parcel Service to become the fourth U.S. carrier authorized to serve China.
      The decision would grant UPS approval to operate direct flights between the United States and Beijing and Shanghai, China beginning in April. UPS said it plans to fly six frequencies using Boeing 747 freighters. Four of the flights will originate in Ontario, Calif. and two will originate in Newark, N.J.
      UPS currently serves China through Hong Kong.
      “The DOT made a bold, forward-looking decision that recognizes the new economy and UPS’s role in the global marketplace,” said Jim Kelly, chairman and chief executive officer of UPS. “Our people will use this opportunity to improve service for all international business in and out of China and to create additional jobs in the United States.”
      The DOT also granted additional weekly round-trip flights to the three airlines already serving China. United Airlines may add two weekly round-trip flights, and Northwest Airlines and Federal Express will add one weekly round-trip flight each.
      DOT Secretary Rodney E. Slater said the department will continue to work “to further liberalize air services between the United States and China.”
      Slater said the DOT has proposed an expansion of frequencies, designations and code-share opportunities during 2002-2004, after which the United States would seek a fully liberalized open-skies agreement with China. Round-trip flights are currently limited to 44 for each country’s airlines, with an additional 10 to be added in
April.