NWA Makes Case for China Service

In its bid to expand air travel to China, Northwest Airlines said Monday it would serve more U.S. cities and passengers than the other three airlines vying for the same service.

Eagan-based Northwest is engaged in an intense contest with American, Continental and United airlines to win one new flight route to China, one of the world's fastest-growing markets.

Northwest Chief Executive Doug Steenland said Monday in an extensive application with the U.S. Department of Transportation that the airline's proposal for nonstop daily service from Detroit to Shanghai would "establish the largest and most effective hub gateway to China."

Continental proposes flying to Shanghai from Newark, N.J. American and United want to fly to Beijing from Dallas and Washington, D.C., respectively.

The competition is stiff because China restricts flights from abroad. The DOT this year will let one U.S. airline add the route to China starting in March.

China's 1.3 billion people and its booming economy represent a huge market for U.S. airlines. In addition, U.S. carriers are seeking growth overseas as they face fierce competition from low-cost carriers at home.

Which airline has the edge? That depends on what the goal is, said airline consultant Michael Boyd.

He believes Northwest's proposal would provide the most immediate economic impact because it would connect two major industrial centers. Northwest claims in its filing that the new China route would create $160 million in annual economic impact to Detroit alone.

However, "If the goal is to fundamentally expand additional China access, American's at the top of the pile" because it would add a Southern U.S. market and serve connections from northern Mexico and South America, Boyd said.

"Regardless, politics count, and because of that, United has the inside track. It has the least economic impact, but it connects two capitals."

In its 328-page filing with the DOT, Northwest's arguments for winning the route include:

-- Serving an estimated additional 214,000 passengers in 2007.

-- Serving 108 U.S. cities, including 86 percent more single-connecting cities than American's proposal, 112 percent more than United and 92 percent more than Continental.

-- Providing the most direct route from Detroit to China, over the North Pole.

Northwest, the nation's fifth-largest airline, flies 1,436 daily flights. It already flies four nonstop flights to Asia -- from Detroit to Japan.

The four airlines have set up special Web sites and news conferences to garner support and try to influence the DOT. Northwest has enlisted support from about 90,000 people for its application, including elected officials from Minnesota and Michigan, big businesses such as General Electric and Microsoft and its own customers through a grass-roots campaign to its frequent fliers.

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