Tuesday, 02 January 2024 12:17 GMT

US Moves To Ban Chinese Airline Loophole For Shorter Trips


(MENAFN- Live Mint) (Bloomberg) -- Washington is proposing to ban certain Chinese airlines from flying over Russian airspace on trips between China and the US, which would close a loophole that has allowed them to operate shorter routes and gain a competitive advantage over US carriers.

The US Transportation Department outlined the move in a filing released Thursday, proposing it would become effective 30 days after a final order is issued following a comment period. It cited a provision in a 1980 bilateral agreement that specifies“routes over third countries shall be conducted on routes available to the airlines of both parties, unless otherwise agreed.”

A ban would apply to flights, including those operated by Air China, China Eastern Airlines and China Southern Airlines, carrying passengers or performing so-called combination services that involve transporting passengers, cargo and mail on the same trip.

Chinese Foreign Ministry spokesperson Guo Jiakun criticized the proposed US restrictions at a regular press briefing in Beijing on Friday, saying they aren't conducive to travel between the two countries. Sino-American tensions flared anew later Friday when US President Donald Trump threatened new tariffs on China and cast doubt on a planned meeting with Chinese President Xi Jinping.

While the most efficient routes connecting certain parts of the US with China plot a course through Russian airspace, those were closed off to US carriers in 2022 after Russia's invasion of Ukraine. But Chinese airlines can offer the more direct routes via Russian airspace, which the department said not only cuts flight times but also saves on fuel and other operating costs.

Airlines for America, a trade group that represents the largest US airlines, applauded the US government order in a statement Friday.“This is an important step that will help ensure US airlines can compete with Chinese carriers on a level playing field,” it said.

--With assistance from Jacob Gu.

(Updates with statement from US airline trade group in last paragraph; Adds background.)

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