Shanghai-LA route good for California economy, says Schwarzenegger

The high-level lobbying campaign to win United Airlines approval to fly the direct Shanghai-Los Angeles route continued yesterday with California Governor Arnold Schwarzenegger leading the way.

In a letter to US Transportation Secretary Mary Peters, Schwarzenegger urged the Department of Transportation to recognise the tremendous economic benefit of a flight from Los Angeles to Shanghai.

"United's proposed routes will mean significant economic benefits to both China and the United States," Schwarzenegger wrote.

"China is our country's fourth largest trading partner, and California is a leading US gateway for trade with China, making the state an ideal choice for increased ties to China."

The City of Los Angeles is also staunchly behind United's bid. It projects that if awarded, a daily, nonstop United Airlines flight from LA to Shanghai would contribute US$647 million annually in economic output for the region's economy, including $164 million in wages and 3,120 direct and indirect jobs.

While the demand for flights to China is increasing, LA remains the largest metropolitan area in the country without nonstop service to China from a US carrier.

LA Mayor Antonio Villaraigosa said the case for a nonstop flight between Los Angeles and Shanghai was compelling, given the economic strength and potential of both cities.

"The ties between Los Angeles and China are extensive," Villaraigosa wrote in his own letter to Secretary Peters.

"Los Angeles established record levels of trade with China in 2006, with more than $118 billion in goods flowing between the US and China through LAX and the Port of Los Angeles.

"United Airlines' proposed service will help western based businesses meet the rapidly rising demand for access to markets in China."

The US Department of Transportation is expected to decide in the next two months if the route will be awarded. Los Angeles - the fastest growing aviation market to Shanghai - has more traffic to Shanghai than any other US metro area.

Meanwhile, on the other side of the continent, Continental Airlines was making its final submission to the DOT to provide the first daily non-stop service, and the only US carrier service, between New York-Newark and Shanghai.

Continental also intends to provide through flight service between Cleveland and Shanghai.

As with United, Continental enjoyed endorsements from elected officials, with support coming from those in New York, New Jersey, Ohio, Texas and even Guam. All the documentation was submitted to the DOT in support of the application.

The airline, which currently offers non-stop service from New York-Newark to Beijing and Hong Kong, is seeking an award of authority to provide additional travel options to China.

"Our customers and communities have told us they want Continental's award winning product and service on a non-stop basis to Shanghai and we're working hard to make this request a reality," said a Continental spokesperson.

DOT has a unique opportunity with this route proceeding to select multiple carriers and gateways to meet surging US-China demand and to satisfy the need for greater airline competition.