UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

WASHINGTON, DC

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Application of )

)

AIR CHINA LIMITED )

d/b/a AIR CHINA ) Docket DOT-OST-2014-0008-0001

)

For Exemption Authority Pursuant to 49 U.S.C § 40109 )

)

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ANSWER OF THE WASHINGTON AIRPORTS TASK FORCE

Communications with respect to this Answer should be sent to:

Leo J. Schefer, President

Washington Airports Task Force

44701 Propeller Court, Suite 100

Dulles, Virginia 20166

Phone: 703-572-8714

FAX: 703-572-8418

leo@washingtonairports.com

Dated: February 7, 2014
1

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

WASHINGTON, DC

------------------------------------------------------------------------------

Application of )

)

AIR CHINA LIMITED )

d/b/a AIR CHINA ) Docket DOT-OST-2014-0008-0001

)

For Exemption Authority Pursuant to 49 U.S.C § 40109 )

)

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ANSWER OF THE WASHINGTON AIRPORTS TASK FORCE

The Washington Airports Task Force ("WATF") answers in strong support of the 

Application of Air China Limited, d/b/a Air China ("Air China"), for Exemption Authority 

authorizing Air China to engage in scheduled foreign air transportation of persons, property and 

mail between Beijing (PEK), People's Republic of China, on the one hand, and Washington, D.C. 

(IAD), United States of America, on the other hand, beginning on June 10, 2014. The WATF 

notes that Beijing in 2012 was the National Capital Region’s largest intercontinental market 

without nonstop competitive service, and submits the following in support of Air China's 

application for exemption authority:

1. The WATF is a non-partisan, non-profit, 501(c)(3) Virginia Corporation dedicated 

to promoting the expansion and enhancement of aviation services for Virginia and the National 

Capital Region. The WATF is focused on sustaining Ronald Reagan Washington National Airport 

(DCA) and optimizing the capacity of Washington Dulles International Airport (IAD). We are a 

results-driven, regional leadership organization whose members understand the linkage 

between our airports, the global access they provide, and our regional economy.
2

2. Air China's proposed PEK-IAD nonstop service will provide an additional link 

between the capitals of the world's two largest economies,1better accommodating the 

governmental (including embassy and military) travel between the two cities.

3. Air China's proposed PEK-IAD nonstop service will also help accommodate the 

expected dramatic gains in Chinese tourists visiting the U.S. in coming years. According to the 

U.S. National Travel and Tourism Office, the volume of Chinese visitors is expected to grow 

from 1.8 million in 2012 to a forecast 4.7 million in 2018, which will make China the country 

with the largest percentage growth (219 percent) during that period among all countries of 

origin to the U.S.

2

4. Specific to tourism in the Washington, DC area, the proposed Air China flights 

will help restore the growth of Chinese visitors to the Nation's Capital. From 2011 to 2012, 

Chinese visitors to the Washington area grew by approximately 92 percent3, but declined in 

2013. Tourism is a major industry in this region.

5. As shown in the map and chart in Exhibit 1, the Washington, DC area has a 

substantial ethnic Asian population totaling in excess of 500,000, based on the 2010 Census. 

The ethnic Chinese population, a subset of that number, totals approximately 75,000 and is 

concentrated in the Northern Virginia suburbs and in Montgomery and Howard counties in 

suburban Maryland.

6. The Washington, DC metropolitan area and its surrounding states are the 

location of many large and well-regarded colleges and universities that attract thousands of 

 

1

See the International Monetary Fund, World Economic Outlook 2013, via CNNMoney.

2

See the U.S. National Travel and Tourism Office's 2013 Fall Travel Forecast.

3

See "Washington, D.C. Tourism Continues To Grow, Increased By 1 Million Visitors In 2012" by Brett Zongker, The 

Huffington Post, May 7, 2013.
3

foreign students each year, and the numbers of these students continues to grow. As shown in 

Exhibit 2, China is the leading place of origin for foreign students, by far, in Washington, DC, 

Maryland and Virginia, a byproduct of which is the substantial number of annual trips made by 

those students to and from China. Air China's proposed PEK-IAD flights would benefit our 

universities and offer these students another travel option.

7. Air China's proposed PEK-IAD flights would improve passengers' travel options in

the market by adding four weekly nonstop round trips offering 1,244 weekly seats in each 

direction, an increase of approximately 66 percent above the current number of weekly 

nonstop seats offered by United Airlines ("United") in the market.4

8. The addition of Air China's proposed PEK-IAD flights would enable Washington, 

DC area passengers to benefit from being able to make online connections to 78 domestic 

Chinese cities and 20 other Asian cities from the carrier's hub in Beijing.5

9. The addition of Air China's proposed PEK-IAD flights would also allow the 

continuing growth of the market to be accommodated. Despite the number of nonstop flights 

in the market increasing by 61 percent from 2010 to 2012, the load factor nonetheless 

remained above 81 percent.6

10. The Beijing-Washington market was the Washington, DC area's 8th largest 

international O&D market in 2012 with nearly 129,000 annual passengers (or 176 passengers 

per day each way [PDEWs]), 85 percent of whom used IAD for their travel to or from PEK. The 

2012 annual passenger number represented a growth rate of 23 percent over the market total 

 

4

See the Air China Exemption Application for nonstop frequencies to be offered in the PEK-IAD market, United's 

online PDF timetable for its current nonstop PEK-IAD frequencies, and Seatguru for the seating configurations of 

Air China's 777-300ERs and United's 777-200ERs.

5

See the Air China website for domestic and international route maps.

6

U.S. DOT T100 Onboard Database.
4

in 2011. This market also was the area's largest international O&D market without competitive 

nonstop service in 2012, making it a great opportunity for Air China's proposed PEK-IAD service 

to be successful.7

WHEREFORE, the Washington Airports Task Force respectfully requests that the

Department of Transportation grant the Exemption Authority requested by Air China Limited, 

d/b/a Air China, in its application dated January 21, 2014, enabling the airline to begin its 

proposed Beijing - Washington (IAD) service on June 10, 2014, as desired.

Respectfully Submitted,

_____________________________

Leo J. Schefer, President

Washington Airports Task Force

44701 Propeller Court, Suite 100

Dulles, Virginia 20166

Phone: 703-572-8714

FAX: 703-572-8418

leo@washingtonairports.com

Dated: February 7, 2014

 

7

Diio Mi International Database.
5

Exhibit 1

Page 1 of 1

THE ASIAN POPULATION IN THE WASHINGTON, DC

METROPOLITAN AREA BASED ON THE 2010 CENSUS

SOURCE: U.S. Census Bureau. Dan Keating, Laris Karklis and Gene Thorp/The Washington Post, May 25, 2011.
6

Exhibit 2

Page 1 of 3

FOREIGN STUDENTS IN WASHINGTON, DC, MARYLAND

AND VIRGINIA 

SOURCE: Institute of International Education.
7

Exhibit 2

Page 2 of 3

FOREIGN STUDENTS IN WASHINGTON, DC, MARYLAND

AND VIRGINIA 

SOURCE: Institute of International Education.
8

Exhibit 2

Page 3 of 3

FOREIGN STUDENTS IN WASHINGTON, DC, MARYLAND

AND VIRGINIA 

SOURCE: Institute of International Education.
9

CERTIFICATE OF SERVICE

I hereby certify that I, Leo J. Schefer, have today served a copy of the Answer of the Washington 

Airports Task Force in support of the Application of Air China Limited, d/b/a Air China for 

Exemption Authority by electronic mail upon the following:

Counsel for Air China: george.tompkinsjr@wilsonelser.com

Airline Info: info@airlineinfo.com

American Airlines: robert.wirick@aa.com

Delta Airlines: sascha.vanderbellen@delta.com

sametta.c.barnett@delta.com

Evergreen International Airlines: ranjit.seth@evergreenairlines.com

robert.foster@evergreenairlines.com

Federal Express: gbleopard@fedex.com

anbird@fedex.com

Polar Air Cargo: kevin.montgomery@polaraircargo.com

peter.beckett@polaraircargo.com

United Airlines: dan.weiss@united.com

Counsel for United Airlines: lhalloway@crowell.com

gmurphy@crowell.com

Counsel for United Parcel Service: anita.mosner@hklaw.com

jennifer.nowak@hklaw.com

US Airways: howard.kass@usairways.com

benjamin.slocum@usairways.com

Federal Aviation Administration: john.allen@faa.gov

U.S. Department of Transportation: esta.rosenberg@dot.gov

barbara.hairston@dot.gov

Metropolitan Washington Airports Authority: philip.sunderland@mwaa.com
10

_________________________

Leo J. Schefer

Dated: February 7, 2014