This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ United Airlines, Air China Announce Pact August 28, 2003 By THE ASSOCIATED PRESS Filed at 2:24 p.m. ET BEIJING (AP) -- United Airlines and Air China said Thursday they would form a marketing alliance and fly under each other's banners to expand service in both China and the United States. It was a rare positive development for the airline industry in Asia during a year of massive losses blamed on SARS and security concerns. The agreement between China's flagship airline and the financially troubled United, the world's No. 2 carrier, will take effect Oct. 31, the companies said in a statement. Under the plan, Elk Grove Village, Illinois-based United will extend its current services to Beijing and Shanghai by putting passengers on Air China flights to five other Chinese cities. Air China will add its banner to United flights serving 14 U.S. cities. The process, known as ``code-sharing,'' allows airlines to extend their services without committing more planes or other physical resources. ``Air China aims to become one of the world's major airlines,'' its president, Li Jiaxiang, said in the statement. ``To align with world-class airlines such as United is a key component of Air China's globalization strategy.'' The two carriers' frequent-flier programs will also become interchangeable on the routes that they share, the statement said. Air China currently flies 395 routes, including 73 international flights. United flies 3,300 flights daily around the world. The announcement comes at a crucial time for airlines that have China routes. SARS, or severe acute respiratory syndrome, caused a sharp drop-off in travel both to and within China in recent months, and major air carriers are struggling to entice China-bound customers back. Last year, before SARS appeared, Air China launched a new thrice-weekly direct service between Beijing and New York City, looking to tap a vast pool of overseas Chinese on the U.S. East Coast. But on Thursday, Li said Air China had postponed a planned initial public offering of its stock because of SARS-related losses. United Airlines chief executive Glenn F. Tilton said the Asia-Pacific market, with its potentially huge economic growth, presents the ``most significant'' international opportunity for United. Asked if the cooperation was a step toward investing in each other's airlines, Tilton wouldn't say. ``We're going to take it one step at a time,'' Tilton said. United is roughly halfway through an overhaul it began Dec. 9 with the largest bankruptcy filing in aviation history. Under a strict timetable, its debtor-in-possession lenders require United to show a profit by Oct. 31 or risk losing its financing. http://www.nytimes.com/aponline/business/AP-United-Air-China.html?ex=1063098037&ei=1&en=e5949990ae012e9b --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company