US Allows Chinese Airlines to Increase Direct Flights to the United States: A Gradual Normalization of US-China Air Services
The United States Department of Transportation (DOT) has announced that Chinese carriers will be permitted to operate 50 weekly round trips between the US and China, marking a significant step forward in the normalization of air services between the two countries. This represents an increase from the current 35 weekly round trips and is the fifth time the US regulator has granted additional quota to Chinese carriers following China’s post-COVID reopening.
Market Conditions and Public Interest
The DOT stated that the decision to increase the number of weekly round trips was based on an assessment of market conditions and consideration of the public interest. The recovery of US-China flight routes is a positive catalyst for the summer peak outbound traffic and cost improvement by increasing wide-body utilization, according to Citi analysts.
History of US-China Air Services
Before the imposition of travel restrictions due to COVID-19 in early 2020, more than 150 weekly round trips were allowed between each side. However, the emergence of the pandemic led to a significant decline in air services as most American airlines suspended flights to China and the Chinese Civil Aviation Administration (CAAC) slashed international flights to the country. Foreign carriers were limited to just one weekly flight, with those that had previously stopped services being barred entirely.
The Chinese regulator’s restrictions triggered a dispute between Beijing and Washington, further straining already tense relations due to questions over the origin of the pandemic and China’s tightening grip on Hong Kong. In response, the Trump administration barred Chinese passenger airlines from flying into or out of the United States in June 2020.
Gradual Recovery and Reopening
After China removed most of its COVID restrictions in December 2022, the DOT announced in May 2023 that it would allow Chinese airlines to increase their US weekly round-trip flights from eight to 12. This was the first increase in three years and equal to the number of flights Beijing had permitted for American carriers. Since then, the DOT has raised the quota three more times before Monday’s increase.
People-to-People Exchange and Challenges
US Commerce Secretary Gina Raimondo had expressed her desire to promote people-to-people exchange with a focus on travel and tourism before the COVID-19 pandemic. At that time, as many as 3 million Chinese travelers visited the United States annually, contributing over $30 billion to the US economy. However, challenges still exist in achieving a full restoration of travel as two US senators urged the Biden administration to stop Chinese airlines and other non-US carriers from flying over Russian airspace on US routes in February 2023. Reuters reported that newly approved flights by Chinese airlines were indeed avoiding Russian airspace, as Russia has banned US and other foreign airlines from flying over its airspace in retaliation for Washington closing its sky to Russian aircraft following its invasion of Ukraine.
