One new cargo and one passenger airline will be chosen over the next year to provide US-China flights as existing carriers increase their service levels.

To deal with the growing number of flights, China is working to strengthen its civil aviation infrastructure.

The growth of the domestic aviation industry and the increasing number of foreign airlines in the country are putting great pressure on existing airport facilities, said Yang Yuanyuan, director of the General Administration of Civil Aviation of China (CAAC).

In the wake of the official signing of a deal that will see the number of flights between China and the United States multiply, officials are looking for ways to smooth the way for the industry's development. Bigger airports and more landing strips are a big part of those efforts.

By the end of 2003, 1,176 domestic and international airlines were operating in China, according to CAAC's statistics.

"The newly-built Guangzhou Baiyun International Airport in South China - which is expected to be put into operation on August 5 - will thoroughly resolve the overcrowded situation," Yang said.

The second runway in Shanghai Pudong International Airport to be completed in March next year will also help alleviate the airport's strained handling capacity, he said.

A third runway and a new terminal building in Beijing Capital International Airport are being built and will be completed by 2007, said Yang.

"Local airports in the cities of Kunming and Chengdu in southwestern China are planning to increase infrastructure constructions," Yang said.

Yang spoke at a press conference after signing a landmark pact on expanding air services between China and the United States with US Secretary of Transportation Norman Y. Mineta on Saturday.

According to the agreement, the number of weekly flights between the two countries will increase nearly five times from the current limit of 54 weekly round trip flights to 249 within six years.

The new agreement will also allow five additional airlines from each country to serve the US-China market.

Insiders say US airlines might benefit more from the new agreement than their Chinese counterparts since the latter do not have enough transport capacity to take advantage of the opportunities the deal offers.

Since the announcement of the deal, concluded on June 18, the US Department of Transportation (DOT) has received applications from four US airlines who hope to operate China-US service, Mineta said.

One US cargo airline will be selected in August or September to handle China business and one passenger airline in June next year, he said.

United Airlines and Northwest Airlines plan to offer new daily flights between the United States and China beginning in the next several months, Associated Press reported.

UPS announced on Friday that it has filed an application to establish a cargo hub in Shanghai.

However, it is still unknown which other airlines China might name for service to the United States.

Yang said his administration is pushing for domestic airlines to improve their competitive abilities internationally.

"CAAC encourages airlines to build their own air hubs by taking advantage of the broad domestic air network and promote international flights through a solid domestic aviation network," Yang said.

"Meantime, domestic airlines are encouraged to establish partnerships or joint ventures with foreign airlines to improve their competitive abilities," he said.

(China Daily July 26, 2004)