Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Biden administration OKs boost in Chinese airline flights to US

Published 05/03/2023, 07:41 PM
Updated 05/03/2023, 09:11 PM
© Reuters. A China Eastern Boeing 777-300ER plane departs from O'Hare International Airport in Chicago, Illinois, U.S. November 30, 2018. REUTERS/Kamil Krzaczynski/File Photo

By David Shepardson

WASHINGTON (Reuters) -The United States will allow Chinese airlines to increase U.S. passenger services to 12 weekly round-trips, the Transportation Department (USDOT) said on Wednesday, equal to the number of flights Beijing has permitted for American carriers.

It is a boost from the eight weekly round-trip flights currently allowed by Chinese carriers and matches what Beijing has permitted for U.S. carriers, but a small fraction of the more than 150 round-trip flights allowed by each side before restrictions were imposed in early 2020 due to the COVID-19 pandemic.

USDOT's order said its goal was "a gradual, broader reopening of the U.S.-China air services market." China in March reopened its borders to foreign tourists for the first time in the three years after abandoning COVID-related border controls for its own citizens in January.

U.S. carriers American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), and United Airlines operate scheduled passenger services between the countries, as do Chinese operators Xiamen Airlines, Air China (OTC:AIRYY), China Southern Airlines and China Eastern Airlines (OTC:CEAYY).

USDOT noted American began operating two additional roundtrip weekly flights to Shanghai from Texas in March after Chinese pandemic restrictions were dropped.

USDOT said in its order that Chinese restrictions on air travel "had, and continue to have, a devastating effect on the U.S.-China air transport market."

U.S. airlines and other foreign carriers are barred from flying over Russia in retaliation for the United States banning Russia from flights over the U.S. in March 2022 after its invasion of Ukraine.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

In February, two key senators issued a letter urging the Biden administration to halt Chinese airlines and other non-American carriers from flying over Russia on U.S. routes, which gives them an advantage in fuel burn and flying time.

Airlines for America, which represents major U.S. carriers, in February praised the senators' letter, noting it underscored longstanding industry concerns regarding Russian overflights that had disadvantaged American passenger and cargo carriers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.