‘Aggressive’: how China’s airlines may become latest front in Trump’s trade war

Chinese airlines could face ticket sale disruptions and higher costs if Washington follows through on a Trump administration proposal to bar them from using Russian airspace on US routes, analysts said – though they were divided over the plan’s feasibility.

“If the proposal is really implemented, Chinese airlines might have to bear the losses from already-sold flights being cancelled – such as passenger compensation and wasted capacity,” said Yang Bo, a Chinese aviation analyst, noting that capacity planning and ticket sales for trans-Pacific routes are usually arranged about six months in advance.

He said a more comprehensive and long-term assessment would be required to determine whether Chinese airlines would choose to absorb the higher costs by re-routing and raising ticket prices, or simply cancel the routes altogether.

The comments came as the US Department of Transportation on Thursday proposed prohibiting Chinese airlines from using Russian airspace on flights to and from the US, according to Reuters. Officials said the shorter flight times give Chinese carriers an unfair edge over their US counterparts.

The proposal – coming on the heels of Beijing’s Thursday announcement of tighter export controls on rare earths and other items – marks a further escalation in tensions between the two countries.

If it were to come into force, Yang said the US could withhold approvals for Chinese carriers’ flight plans, as the process for next year’s summer flight season – one of only two scheduling periods in a year – is about to begin.

South China Morning Post