FX.co ★ US Airlines, Unions Urge Govt To Pause Addl. Flights Between US And China

Leading American airlines and their affiliates have called on the Biden Administration to halt additional passenger flights between the US and China due to what they perceive as unfair competition practices on the part of the Chinese government.

Several China-based airlines witnessed a drop in their trading value following the announcement. Shares in Air China Ltd dipped by 2.9%, China Eastern Airlines Corp. Ltd. by 2.5%, and China Southern Airlines Co. Ltd. decreased by 1.8%.

Representatives from the US aviation industry, including major airlines and unions, penned a collective letter to Secretary of State Antony Blinken and Secretary of Transportation Pete Buttigieg. The letter appealed against approval of new flights until equal marketplace access for US workers and businesses, hindered by current Chinese policies, is attained.

From among those who participated in sending the letter are Airlines for America (A4A), representing all main US airlines along with associate members such as UPS and FedEx, as well as The Association of Flight Attendants-CWA (AFA), Air Line Pilots Association (ALPA), and Allied Pilots Association (APA).

The letter referred to a unilateral decision taken by China at the onset of the COVID-19 pandemic to suspend bilateral air service agreements with the US and effectively shut down the Chinese market to US carriers.

American airlines complained about the stringent limitations on market access and the regulatory hurdles imposed by China during the pandemic. These measures affected operations, customers, and the treatment of US airline crew members.

According to the signatories of the letter, approximately 315,000 workers employed by US passenger airlines serving China are adversely affected by this competitive disadvantage. They stressed the urgent need for the US government to formulate a policy protecting its aviation workers, industries, and travelers.

They underlined the non-competitive relationship between both nations, exemplified by Chinese airlines continuing to have access to Russian airspace. In contrast, US carriers ceased flying through Russian airspace after Russia initiated its invasion of Ukraine in March 2022.

The letter noted, "If the growth of the Chinese aviation market is allowed to continue unchecked and without concern for equality of access in the market, flights will continue to be relinquished to Chinese carriers at the expense of US workers and businesses."