DOT grants AA six-month extension to start LAX-PEK flights

The US Department of Transportation has announced it has granted American Airlines (AA, Dallas/Fort Worth) an extension to its 90-day start-up condition for its proposed Los Angeles International-Beijing Capital service.

Citing difficulties in securing slots at Beijing Capital Airport, American had sought to extend the start-up date for the route by one year, or within 90 days of obtaining commercially viable slots at Beijing, whichever occurs first.

Delta Air Lines (DL, Atlanta Hartsfield Jackson) subsequently objected to the application arguing American had been lax in its pursuit of slots with the Civil Aviation Administration of China (CAAC). It requested the DOT to either deny American's proposed extension, or at least significantly limit its duration and assign Delta back-up authority, or revoke AA's frequencies entirely and reaward them to Delta. Delta had claimed it could obtain slots through its partner China Eastern Airlines (MU, Shanghai Hongqiao) and was therefore ready and able to inaugurate service.

In its determination issued on Friday, March 10, the DOT said that while it would agree to extend the start-up condition, it would limit the period to only six months (i.e. until September 16, 2017) instead of the twelve originally requested.

"We regard a six-month period as more appropriate for American either to secure the slots it needs, or if it has not yet been able to do so, report on the status of its efforts in the context of seeking a further start-up extension," the DOT said.

The DOT also reiterated its original findings that even though American's service has been delayed, its proposal would still provide greater enhancements to competition and service than Delta and would thereby maximize public benefits.

"On balance, however, we have determined that such a delay, resulting from American’s inability to obtain commercially viable slots from the Chinese authorities, does not warrant the carrier’s loss of authority and the resultant loss of those public benefits that formed the basis of our selection decision," it added.