The U.S. administration has proposed banning Chinese airlines from flying over Russia on routes to and from the United States, a move aimed at eliminating what it calls an unfair competitive advantage for Chinese carriers.
This proposal marks a significant escalation in the trade dispute between the world’s two largest economies. It was announced shortly after Beijing tightened export controls on rare earth minerals, which are crucial for several U.S. industries.
U.S. carriers have been prohibited from using Russian airspace since March 2022, a ban imposed by Moscow in retaliation for U.S. sanctions following the invasion of Ukraine. In contrast, Chinese airlines have continued to use these more direct routes, resulting in shorter flight times and lower fuel costs. The U.S. Transportation Department stated on Thursday that this disparity has created “substantial adverse competitive effects on U.S. air carriers.”
The proposed restriction would apply to passenger flights operated by carriers including Air China, China Eastern, Xiamen Airlines, and China Southern. Cargo-only flights would be exempt. It remains unclear if the order would affect Hong Kong-based Cathay Pacific, which currently overflies Russia on its New York route. Chinese carriers have been given two days to respond to the proposal, with a final order potentially taking effect as early as November.
In response, a spokesperson for China’s foreign ministry said the restrictions would not be conducive to person-to-person exchanges. Following the news, mainland-listed shares of China’s three biggest airlines slipped, with these carriers already struggling financially after posting five consecutive years of losses.
Prior to the COVID-19 pandemic, each country allowed over 150 weekly round-trip passenger flights. Last year, the U.S. permitted Chinese carriers to increase their weekly round-trip flights to 50 but has resisted further additions following pressure from U.S. airlines and unions.
American carriers have informed the administration that without access to Russian airspace, some routes, particularly direct East Coast flights to China, are not economically feasible. The longer flight paths require them to reduce cargo loads and leave seats empty to accommodate the extra fuel needed.
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