U.S. airlines use illogical excuses to try to block Chinese airlines' growth

As global air travel gradually resumes, the US-China aviation agreement has once again become a hot topic. Under the bilateral agreement, airlines from both countries are capped at the number of flights they can operate. However, recently several large airlines in the United States are seeking further restrictions to prevent further expansion of the Chinese aviation industry. But does the reasoning behind this really hold up?

Current U.S.-China Flight Quotas and Air Travel Agreements

As the world's two largest economies, the United States and China have complex air travel agreements that have significant consequences for both countries. The bilateral agreement stipulates the number of flights that airlines from both countries can operate. Before the epidemic, airlines from both countries could operate up to 150 flights per week. However, with the outbreak of the global epidemic, this number has dropped significantly. Currently, this number is set at 50 round-trip flights (100 flights) per week. Although it is an increase from the previous 35, 24 and even 18 earlier times, it still pales in comparison to the scale before the epidemic. . This figure translates into only about seven flights a day operating between the world's two largest economies, which is obviously not enough for business and tourist travelers who want to increase international exchanges.

U.S. aviation industry’s protests against China’s aviation industry and its excuses for opposition

Recently, the American Airlines Association (AA), representing American Airlines (AA), Delta Air Lines (DL) and United Airlines (UA),Airlines for America) and a group of its three major labor unions sent a letter to the Biden administration (original letterLink), claiming that further increases in flights from China should be restricted. Their main argument is that airlines from China are able to fly in Russian airspace while U.S. airlines are not, creating unfair competition; they also point out that Chinese airlines receive certain additional special privileges because of their ties to the government. in a favorable position for protection. But is this reason really valid? In fact, many other international airlines flying to the United States, such as Air India (AI), Emirates (EK), etc., are also using Russian airspace, and many of them have accepted various regulations from their governments. financial support.

The real motivation behind selfish behavior: protecting gains

The protest by American Airlines may be based more on economic gain than fair competition. Since the outbreak, the Chinese market has not been as profitable for U.S. airlines as it once was due to heightened geopolitical tensions and slowing Chinese economic growth. Additionally, U.S. airlines are not fully utilizing their current flight quotas to China, preferring to allocate their fleets to other more profitable destinations, especially as high-end leisure demand continues to increase. In addition, they also hope to maintain high profits through high ticket prices, which is obviously out of considerations to protect their own interests.

Benefits of increasing flights to China

If restrictions on Chinese airlines are relaxed and more trans-Pacific flights are added, not only can ticket prices be quickly reduced and market competition increased, flight options may also increase. This is a great boon for international travelers planning to travel to or via China. More flight options mean more flexibility and convenience. For us points travel players, if Chinese airline flights can be resumed, maybe in the future, finding business or first class award tickets on Cathay Pacific won’t be so difficult.

Conclusion

While American Airlines has framed its position as a nice lie about fair competition, it looks more like a self-interested farce simply to prevent trans-Pacific flight fares from falling. In an increasingly globalized world, providing more flight options and lower fares may be a direction that benefits everyone. Their arguments regarding access to Russian airspace and government subsidies appear weak given the realities of the global aviation industry. Perhaps airlines should start from their own perspective and find ways to improve services and lower prices, which will not only benefit consumers but may also help improve tense international relations.