The U.S. airline industry, along with airline industry labor unions, has raised concerns about the perceived unfair competitive advantage that Chinese carriers have been enjoying. They argue that Chinese airlines have been benefiting from certain advantages, such as continuing to access Russian airspace, while U.S. carriers have had to alter their routes due to geopolitical conflicts.
The Department of Transportation (DOT) recently announced an increase in the flight cap for Chinese carriers to operate to the U.S. This decision raised the number of roundtrips per week to 50, up from the previous cap of 35 per week. While Chinese carriers have taken full advantage of this increase, U.S. carriers have not reciprocated, with only 143 round trips scheduled for April compared to the 200 round trips by Chinese carriers.
U.S. airlines and unions highlight their concerns not only about the use of Russian airspace but also about the broader competitive disadvantage that Chinese airlines allegedly benefit from. They argue that Chinese airlines receive certain protections from their government, allowing them to operate regardless of market conditions, giving them an unfair advantage over U.S. carriers.
The trade group Airlines for America (A4A), along with unions representing pilots and flight attendants, have called on the Biden administration to address these issues and refrain from further increases in the flight cap for Chinese carriers. They argue that failure to do so would result in significant consequences for U.S. aviation workers, travelers, and airlines.
The concerns raised by U.S. airlines and unions have garnered some support in Congress, with Illinois Democrat Raja Krishnamoorthi expressing his support for addressing the significant issues faced by the U.S.-China passenger carrier market. The call for fair competition in the airline industry is gaining traction as stakeholders seek to level the playing field and ensure equal opportunities for all carriers.
The debate over the competitive advantage of Chinese airlines highlights the complex dynamics at play in the global aviation industry. As calls for fair competition grow louder, it remains to be seen how the Biden administration will address these concerns and work towards a more level playing field for all airlines operating in the U.S.