The U.S. Department of Transportation has given American Airlines six more months to start its daily nonstop service between Los Angeles and Beijing, short of the full year American sought.

The DOT also rejected Atlanta-based Delta Air Lines Inc.’s (NYSE: DAL) second bid to win the route based on American’s admission it could not get commercially viable slots at the Beijing airport by the original March 16 startup date the DOT set.


In a filing March 10, the Department of Transportation said Fort Worth, Texas-based American Airlines could delay the start of LAX-PEK service for six months, until Sept. 16, 2017, or until 90 days after it obtains commercially viable slots at Beijing, whichever comes first.

“When we selected American’s Los Angeles-Beijing proposal, we did so because we concluded that American’s proposal would provide greater enhancements to competition and service than selection of Delta and would thereby maximize public benefits,” according to the DOT decision filing by Susan McDermott, deputy assistant secretary for Aviation and International Affairs. “The Department recognizes that, in granting an extension of the start-up deadline, the benefits of American’s service might be somewhat delayed. On balance, however, we have determined that such a delay, resulting from American’s inability to obtain commercially viable slots from the Chinese authorities, does not warrant the carrier’s loss of authority and the resultant loss of those public benefits that formed the basis of our selection decision.