Major US airlines and their unions are urging the Biden administration to halt new flights between the U.S. and China. They argue that China’s restrictive policies unfairly disadvantage U.S. carriers. These policies, which were put in place during the pandemic, continue to affect American airlines and their crews.
In a letter addressed to Secretary of State Antony Blinken and Transportation Secretary Pete Buttigieg, the airlines and unions emphasized the need for U.S. government intervention to safeguard the interests of American aviation workers and travelers.
Signatories to the letter include the CEO of Airlines for America and the presidents of the Air Line Pilots Association and the Allied Pilots Association, representing crews at American-based carriers.
Why US Airlines Want to Stop More Flights to China?
Some major US airlines and their worker unions are urging the Biden administration to halt approval for more flights between the US and China. They argue that China’s policies unfairly disadvantage US carriers, affecting their ability to operate in China. These concerns stem from China’s restrictions on US airlines during the pandemic and ongoing regulations impacting American airline staff and operations.
In a letter addressed to Secretary of State Antony Blinken and Transportation Secretary Pete Buttigieg, the airlines and unions emphasize the need for US government policy to safeguard American aviation workers, the industry, and travelers.
According to the Associated Press, the letter was signed by the CEO of Airlines for America and presidents of several airline unions, including the Air Line Pilots Association and the Association of Flight Attendants.
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China and US Number of Flights
Flights between China and the U.S. are increasing, yet still below pre-pandemic levels. Starting March 31st, the Biden administration allowed Chinese airlines to increase their weekly round trips from 35 to 50. This decision followed China’s promise to boost flights for U.S. carriers.
However, U.S. airlines raised concerns. They pointed out that Chinese airlines benefit from flying shorter routes through Russian airspace, a privilege denied to U.S. carriers since Russia’s invasion of Ukraine. Additionally, Chinese airlines receive certain protections from China’s government as they are state-owned.
American industry groups emphasized the importance of fair access to China’s aviation market. They warned that without it, U.S. carriers could lose flights to Chinese airlines.
Chinese Airline Stocks Drop after US Restricts Flights
Investors are selling off shares of major Chinese airlines following reports that US airlines are pushing to limit the number of flights between the US and China.
Air China Ltd.’s stock in Hong Kong fell by 4.6%, while China Southern Airlines Co. saw a 2.2% decline. China Eastern Airlines Corp., based in Shanghai, saw the biggest drop at 3.5%, compared to the Hang Seng Index’s 1.9% decrease, as per Bloomberg’s report.
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Frequently Asked Questions (FAQs)
Q.1. Why are US airlines urging the Biden administration to stop new flights to China?
Ans. Major US airlines and their unions argue that China’s policies unfairly disadvantage US carriers, impacting their operations and competitiveness.
Q.2. How do China’s policies affect US carriers?
Ans. China’s restrictions during the pandemic and ongoing regulations hinder US airlines’ ability to operate in China, affecting both their staff and operations.
Q.3. What prompted the letter to Secretary Blinken and Secretary Buttigieg?
Ans. The need for US government intervention to safeguard American aviation workers, industry interests, and travelers drove major US airlines and unions to address the letter.
Q.4. What are the concerns raised by US airlines regarding Chinese airlines’ flight advantages?
Ans. US carriers point out that Chinese airlines benefit from flying shorter routes through Russian airspace, a privilege denied to US carriers since Russia’s invasion of Ukraine. Additionally, Chinese airlines receive certain protections from their government as they are state-owned.
Q.5. Why are investors selling off shares of major Chinese airlines?
Ans. Reports of US airlines pushing to limit flights between the US and China have prompted investors to sell off shares of major Chinese airlines, causing a decline in their stock prices.
