Shang-high hopes for cheaper China flights

American Airlines will launch a new nonstop daily service between Chicago O'Hare International Airport and Shanghai, according to reports in the Chinese press.

The new flights will begin in April, breaking the monopoly that United Airlines has on the route and cutting ticket prices.

"American Airlines' entry into the market will stiffen the competition," explained Alfred Li, general sales manager of United Airlines, to The Shanghai Daily. "We have to lower the prices as a strategy to face the competition."

American plans to commence flights on April 2 with an 11.05am departure from Chicago, touching down at Shanghai Pudong International Airport at 2.15pm on April 3. The return flight will depart Shanghai at 4.25pm, arriving in Chicago at 5pm. Two Boeing 777s will operate on the route.

American Airlines' entry into the Chinese market is a result of the expanded air services agreement signed between China and the US in 2004. The accord doubles the number of airlines that are allowed to fly between the two countries.

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