There has been a growing concern among U.S. airlines and airline industry labor unions regarding the imbalance in the competitive playing field between U.S. and Chinese carriers. This concern has led to a request to the Biden administration to halt further increases in the number of flights allowed for Chinese carriers to operate in the U.S. This issue stems from the perceived advantage that Chinese airlines have over U.S. carriers, particularly in terms of accessing Russian airspace.
The trade group Airlines for America (A4A), along with unions representing pilots and flight attendants, highlighted the anticompetitive relationship between the two countries. They pointed out that Chinese airlines have continued to access Russian airspace, while U.S. carriers ceased flying through Russian airspace at the onset of Russia’s invasion of Ukraine in March 2022. This disparity in treatment has raised concerns about the fairness of the regulatory environment for airlines operating between the two countries.
The U.S. Department of Transportation (DOT) announced an increase in the flight cap for Chinese carriers to 50 roundtrips per week, up from the previous cap of 35 per week. Despite this increase, U.S. carriers have not reciprocated, as they are only scheduled to fly 143 round trips in April, compared to the 200 round trips by Chinese carriers. This disparity in flight frequencies has raised questions about the level of competition between U.S. and Chinese airlines in the current market.
Concerns Over Market Conditions
U.S. airlines and labor unions have expressed concerns beyond just the issue of flying over Russian airspace. They have cited a competitive disadvantage faced by U.S. carriers due to the protections enjoyed by Chinese airlines from their government. This advantage allows Chinese carriers to operate independently of standard market conditions, giving them an unfair edge over U.S. carriers. This lack of a level playing field has raised red flags for U.S. airlines and industry unions.
The U.S. airlines’ plea for a more balanced competition has garnered some support in Congress, with representatives expressing concerns about the potential consequences of an expanding U.S.-China passenger carrier market. Congressman Raja Krishnamoorthi warned that failure to address these issues could result in adverse effects on U.S. aviation workers, travelers, and airlines. This highlights the critical need for regulatory action to address the disparities in the U.S.-China aviation market.