Chinese air travel is at an all time high. It’s a huge market, but US airlines are finding it tough to tap into this boom and benefit from it. On the surface of it, you’d perhaps think that it would make sense to have more flights between the US and China, to take advantage of the extra travelers. But what is actually happening, is that US airlines are reducing, not increasing their routes to China.
For example, the Hawaiian Airlines flight from Honolulu to Beijing is no longer running, United Airlines has dropped its San Francisco to Hangzhou service and the American Airlines route from Chicago to Shanghai has also stopped.
Why is this the case?
So why are the US not benefiting from more people wanting to travel around the globe? Well, it’s a combination of factors. Several airlines have stated that the current high fuel costs simply make these routes unprofitable. However, the US carriers face another problem, and that is the extra competition from government-backed Chinese airlines. Of course the extra popularity of air travel in China is going to cause rapid expansion of Chinese carriers looking to cash in on the boom, and that’s exactly what they are doing, offering an increased selection of international routes for Chinese customers.
There are far more Chinese visitors to the US than there are US citizens travelling to China. It’s understandable that the people of China are more likely to book their flights with a Chinese airline, one that they know, one that they have seen advertised, rather than to go with a US airline. We all tend to opt for the familiar and flights are no exception to that rule.
China is pushing into US routes
The aviation industry is notoriously tough and so it’s no surprise that Chinese airlines are doing everything they can to create extra profit from a boost in air travel demand. With more international routes being offered by Chinese carriers, passenger yields on these routes are reduced for the US airlines that once had a monopoly on some international routes. It’s a competitive business, and Chinese airlines have upped their game, with an increase in quality of service for passengers and lower prices due to government subsidies that US carriers simply cannot match.
Are US carriers being ill-treated by Chinese authorities?
There have also been some complaints accusing the Chinese authorities of giving US airlines the worst landing slots to make those flights less favorable with the public. Whether this is simply coincidence, sour grapes, or an attempt to reduce US carriers in China even further is up for debate.
John is a passionate traveler who has traveled to over 46 countries on more than 30 different airlines. He loves surfing, booking hotels and flights using his frequent flyers points, and exploring new cultures. John lives in London.
