OOKING AHEAD, WE WOULD LIKE TO FURTHER SPUR COMPETITION ACROSS THE PACIFIC BY LAUNCHING NEW SERVICES BETWEEN CHICAGO AND BOTH SHANGHAI AND BEIJING. OBVIOUSLY, THERE IS A LOT OF EXCITEMENT IN THE BUSINESS WORLD RIGHT NOW ABOUT CHINA’S ENTRY INTO THE WORLD TRADE ORGANIZATION. WE’RE CERTAINLY EXCITED ABOUT WHAT IT MEANS, AND THE POTENTIAL FOR INCREASED COMMERCIAL, POLITICAL, AND CULTURAL INTERACTION BETWEEN CHINA AND THE REST OF THE WORLD.

AS MANY OF YOU KNOW, THE DEPARTMENT OF TRANSPORTATION IS IN THE PROCESS OF DECIDING HOW IT SHOULD ALLOCATE NEW FREQUENCIES TO CHINA, AND WHICH CARRIER SHOULD RECEIVE THE RIGHT TO BECOME THE FOURTH AIRLINE TO FLY BETWEEN THE UNITED STATES AND THE WORLD’S MOST POPULOUS COUNTRY. THE TWO PASSENGER CARRIERS THAT FLY THERE TODAY – UNITED AND NORTHWEST – ARE BOTH MEMBERS OF GLOBAL ALLIANCES. THEIR ACCESS TO CHINA, AND TO MUCH OF THE REST OF ASIA FOR THAT MATTER, GIVES THEIR PARTNERSHIPS A POWERFUL MARKETPLACE ADVANTAGE -- AND WILL CONTINUE TO DO SO, AT LEAST UNTIL THE ARRIVAL OF A NEW AIRLINE, AND BY PROXY, A NEW ALLIANCE.

OF COURSE, THAT SCENARIO PRESUMES THAT THE NEW DOT DESIGNEE WILL BE A COMBINATION PASSENGER / CARGO CARRIER, AS OPPOSED TO A STRICTLY-CARGO OPERATION, WHICH IS THE SUBJECT OF SOME DEBATE AT THE MOMENT.

FROM OUR PERSPECTIVE, WE LOVE CARGO. IN FACT, EACH ONE OF THE 777 AIRCRAFT WE HOPE TO FLY TO CHINA CAN CARRY ABOUT 17 TONS OF IT. SO SHOULD WE GAIN THE AUTHORITY TO DO SO, WE PLAN TO CARRY A LOT OF PACKAGES BETWEEN CHINA AND THE UNITED STATES. BUT WE THINK GIVING THE AUTHORITY TO AN ALL-CARGO CARRIER BEFORE A COMBINATION CARRIER WOULD BE AKIN TO PUTTING THE CART BEFORE THE HORSE.

APART FROM THE FACT THAT IT WOULD DO NOTHING TO INCREASE COMPETITION VIS A VIS PASSENGER SERVICE TO CHINA, GRANTING THE FOURTH CARRIER DESIGNATION TO AN ALL-CARGO AIRLINE WOULD IGNORE THE REALITY THAT GLOBALIZATION ISN’T JUST ABOUT TRADE – ABOUT MOVING THINGS BACK AND FORTH. IT’S ABOUT MORE THAN BARBIES AND MICROWAVES. IT’S ALSO, AND EQUALLY, ABOUT A SHARED APPRECIATION OF CULTURE, TRADITION AND COMMUNITY. IT’S ABOUT COMMERCE, BUT LIKE THE INTERNET, IT IS ALSO – AT ITS CORE -- ABOUT CONNECTING PEOPLE WITH PEOPLE.