• Home
  • About

Evan Sparks's Aviation Policy Blog

A wonk's-eye view of everything in the sky.

Feeds:
Posts
Comments
« Passenger “bill of rights” for New York state
Airline analysts abhor consumer-friendly competition »

Lopsided ambitions for Chinese skies

August 7, 2007 by Evan Sparks

Talks with Beijing in May secured thirteen more nonstop round-trip passenger flights between the United States and China. U.S. carriers salivated at the possibility, eagerly promoting their prospective services with splashy websites and campaigns worthy of an Olympic bid. (It totally slipped by me, I suppose, that the 2014 Winter Olympics were announced for Russia last month.) A few U.S. majors have no China rights at all, and since the Chinese market is growing faster than routes are becoming available, demand is increasing, and airlines can charge fare premiums.

But Chinese airlines are not so excited about the new rights, according to ATW Online. The agreement with China allows Chinese carriers a number of these rights, but none of the big three there–Air China, China Eastern, and China Southern–applied for them. Chinese airlines have faced competitive disadvantages on transpacific routes in service and fares. They have not even used all their available slots. Therefore, four little-known, less-networked airlines have received the Chinese slots.

There is strong demand for nonstops between China and the United States. If Chinese carriers are not interested in flying them, U.S. airlines are more than willing and ready. They are chomping at the bit. They have the planes, passengers, and route networks to make them work. Sound public policy would allow the best airline to fill a space, regardless of nationality. Although this provision of the agreement is likely intended to create connection options on both sides of the Pacific, it only works if ambitions are created equal. This latest development illustrates why open skies agreements make more sense: they allow the market to assign routes, not bureaucrats in Washington and Beijing.

China’s big three pass on new transpacific services; four smaller carriers apply [ATW Online]

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

Related

Posted in Evan's Commentary | Tagged asia, competition, network airlines, open skies, regulation | 2 Comments

2 Responses

  1. on August 7, 2007 at 8:12 pm Airline analysts abhor consumer-friendly competition « Evan Sparks’s Aviation Policy Blog

    […] About the blog ← Lopsided ambitions for Chinese skies […]


  2. on September 25, 2007 at 11:42 am Winners all in China grab bag « Evan Sparks’s Aviation Policy Blog

    […] 2007 by Evan Sparks The Department of Transportation has awarded new China route authority (see my earlier post on this), and all the major airline applicants took home a prize. Delta goes first, with immediate approval […]



Comments are closed.

  • Recently on the APB

    • America vs. Europe: who overrates whom?
    • Scare headline not so scary in article
    • Crew rest and training, new ATC contract, and more
    • The solution to NYC’s airport woes?
    • And… I’m back
    • Nothing to see here
    • Let your left hand not know what your right hand is doing….
    • Evan around the web
    • This is just ridiculous
    • Liveblogging Randy Babbitt’s confirmation hearing
  • 2008 aerospace airports air traffic control alitalia american asia ata atsb australia pacific Aviation08 BAA british airways budget airlines business canada competition congress consumer advocacy continental delays delta Deregulation 2.0 dot emirates energy environment europe faa fedex general aviation geography health history humor iata icao klm korean labor latin america lufthansa media Merger Mania 2008 mergers meta middle east middle east/africa military misc. nationalism network airlines northwest open skies politics prestige regulation ryanair safety sarcasm security small communities southwest Southwest and the FAA space tax transit travel tsa united usa us airways virgin virgin america world
  • Archives

    • August 2009
    • July 2009
    • June 2009
    • May 2009
    • April 2009
    • March 2009
    • February 2009
    • January 2009
    • December 2008
    • November 2008
    • October 2008
    • September 2008
    • August 2008
    • July 2008
    • June 2008
    • May 2008
    • April 2008
    • March 2008
    • February 2008
    • January 2008
    • December 2007
    • November 2007
    • October 2007
    • September 2007
    • August 2007
    • July 2007
  • Find me on Facebook!
  • Banner photo: Washington during landing at National Airport, November 2007. © Rachel Ayerst. Used by permission.

Create a free website or blog at WordPress.com.

WPThemes.


Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • Evan Sparks's Aviation Policy Blog
    • Already have a WordPress.com account? Log in now.
    • Evan Sparks's Aviation Policy Blog
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Copy shortlink
    • Report this content
    • View post in Reader
    • Manage subscriptions
    • Collapse this bar
%d bloggers like this: