greenair727
Posts: 534
Joined: Wed Jan 10, 2007 6:27 am

China Zone 2

Thu Jan 11, 2007 4:05 am

As the DOT just announced awarding the US-China route to UA, I learned that seven weekly frequencies were also up for grabs between the US and China Zone 2. From the USDOT docket, "As defined by the amended agreement, China Zone 1 consists of Beijing, Shanghai, and Guangzhou.
China Zone 2 consists of Anhui, Fujian, Giiangdong (except Guangzhou), Hebei, Henan, Hubei, Hunan, Jiangsu, Jiangxi, Shandong, Shanxi, Tianjin, and Zhejiang." Are these areas and their futures so undesirable from a market perspective, that none of the carriers (incumbents only--UA, NW, CO, AA) bid for it? Or were they afraid, if they did, they may not get their Zone 1 bid, which was more prized?
 
airways1
Posts: 536
Joined: Mon Jul 19, 1999 3:05 am

RE: China Zone 2

Thu Jan 11, 2007 11:54 am

I thinks it's more likely a case of there not being any destinations in zone 2 (according to your list) that are worth flying to. None of the cities in those provinces have intercontinental flights, as far as I am aware.
 
B2443
Posts: 587
Joined: Sat Jul 03, 2004 2:28 am

RE: China Zone 2

Thu Jan 11, 2007 11:56 pm

PEK and PVG are by far the most important cities and gateways in the mainland China. CAN is a remote 3rd, followed by perhaps Chengdu or Chongqing. Only NW flies to CAN with a 752, which is not always filled. That tells a lot about demand at CAN. Besides PEK/PVG, there's really no much interest in serving any Zone2 cities, not even from the Chinese airlines, let alone the US airlines.

There were rumors that CAN might be downgraded to Zone 2. CAN's problem is that it is too close to HKG, where choices seem unlimited.