BEIJING, China (eTN): The signing of China-US aviation agreement to promote bilateral travel and tourism cooperation will increase two-way flights between the two countries by 460 percent.

This follows the agreement signed in December 2004 to open the US to Chinese tourists.  Karan Bhatia, US assistant secretary for aviation and international affairs, said, the agreement was to bring air services to the level of growing demand stemming from rapidly expanding trade and tourism between the two countries.

Under the 2006 agreement signed, the current 54 flights a week will rise to 249 flights over the next six years, and airlines permitted to run services between the US and China from four to nine.

"An open skies agreement is the most effective aviation arrangement for moving people and cargo between countries," said Bhatia.

"As tourism and trade between the two countries continue to grow there is a compelling reason there should be a completely open aviation market in which there is unlimited entry for carriers."

The agreement also provides for US airlines to add new flights in 2006, 2008, 2010, and build hubs in China from 2007.

Limitations on flights to 12 US destinations and five Chinese cities will be lifted, with United and Northwest expected to benefit from the new agreement.

Northwest Airlines is expected to offer seven non-stop flights on its Detroit-Guanghou and Chicago-Shanghai routes soon.

US Department of Transport Secretary Norman Mineta said, "The agreement is a start, not the end of a process. We expect further easing of regulations." 

Reports from China do not indicate which Chinese airlines will benefit from the agreement, but it is rumored that Beijing is in the middle of consolidating the aviation industry into three major carriers. 

"The agreement is also a good stepping stone towards the liberalization of air services between the US and third countries as well as China and third countries," added Mineta.

The Civil Aviation Administration of China (CAAC) confirmed it has received and are considering three applications to service the low cost carrier airline sector. "CAAC     needs to loosen controls on ticket prices for a low cost carrier service," said a Chinese airline analyst.

Chinese media reported China will see an annual increase of more than 22 million middle-class consumers. By 2020, the number of Chinese traveling abroad will reach 100 million, and China will become the world's fourth largest tourist destination and source of tourists.

Chinese aviation official Yang Yuanyuan was also quoted saying a new bilateral safety agreement with the US will help China confront a range of growing pains caused by its mushrooming airline industry.