Deal to double flights between London and China takes off

Bloomberg

Britain announced an agreement to double the number of flights allowed to operate between UK cities and China as Prime Minister Theresa May’s government seeks to boost inter-continental transport links following June’s vote to quit the European Union.
Passenger services can now increase from the current maximum of 40 a week for carriers from each nation to as many as 100, while any destination can be served after a cap of six cities per country was dropped, the Department for Transport said. There’ll also be no limit on cargo-only operations.
Britain is trying to show the world that it remains open for business as it prepares to end its 43-year membership of the EU, the world’s largest trading bloc. Improved connectivity with China “will provide massive opportunities” for businesses, boosting trade, creating jobs and aiding the post-Brexit economy, Transport Secretary Chris Grayling said in a statement, while adding that the final decision on additional services is a commercial one for airlines.
Chinese carriers provide the bulk of flights under the existing accord, with Air China Ltd., China Southern Airlines Co., China Eastern Airlines Corp., Hainan Airlines Co. and Tianjin Airlines Co. taking up 38 weekly slot pairs, compared with British Airways and Virgin Atlantic Airways Ltd. on the British side, which tap only 29 slots. Thirteen operating slots aren’t currently utilized.

Tourist Surge
Visits from China are on the increase, surging 46 percent last year to almost 270,000, while spending rose 18 percent to 586 million pounds ($711 million), moving the nation into the top 10 most valuable inbound markets, the DfT said.
UK carriers currently lag behind European rivals in providing links with China. British Airways serves only Beijing, Shanghai and Chengdu on the mainland, though owner International Consolidated Airlines Group SA said in April it had begun code-sharing talks with China Southern and China Eastern aimed at securing a deal that will allow it to sell tickets to many more destinations.
Air France-KLM Group, by contrast, already has more advanced joint venture deals with the two Chinese carriers that permit timetable harmonization and cost- and revenue-sharing on some routes, while Deutsche Lufthansa AG said last month it had signed a similar cooperation agreement with Air China.
Chinese carriers have also used the current agreement to expand beyond London, with Manchester Airport this year becoming the first hub outside the capital to get regular direct flights when Hainan Air commenced services to Beijing four times a week. Air China has to serve the north English city from Shanghai with the same frequency of services starting next March.
Hong Kong has its own air-services agreement, with BA, Virgin and Cathay Pacific Airways Ltd. operating on U.K. routes.