The Trump administration on Thursday proposed barring Chinese airlines from using Russian airspace on routes to and from the United States, citing concerns that the reduced flight time provides American carriers at a competitive disadvantage. The US Transportation Department said in a proposed order that the current arrangement “was unfair and has resulted in substantial adverse competitive effects on US air carriers.” Chinese airlines using Russian airspace save time and fuel, lowering operating costs compared to US carriers. The department clarified that the proposed restriction would apply to US-issued foreign air carrier permits but would not cover cargo-only flights. Carriers potentially affected include Air China, China Eastern, Xiamen Airlines, and China Southern. Hong Kong-based Cathay Pacific, which flies over Russia between New York and Hong Kong, was not mentioned. The proposal comes amid escalating trade tensions, after China on Thursday tightened controls on rare earths exports, essential to several US industries. This move adds to ongoing economic frictions between the world’s two largest economies. Shares of China’s three largest state-owned airlines fell slightly following the announcement. By midday Friday, Air China was down 1.3 per cent, China Southern fell 1.8 per cent, and China Eastern slipped 0.3 per cent. The carriers have faced consecutive annual losses since the pandemic. Russia has barred US and many foreign carriers from flying over its territory in retaliation for the US banning Russian flights in March 2022 after Moscow’s invasion of Ukraine. Chinese airlines, however, have continued using Russian airspace to expand market share on international routes. Previous negotiations in May 2023 allowed additional flights for Chinese carriers, provided they did not fly over Russia on new routes. The Transportation Department limited weekly round-trip US flights to 50, partly due to pressure from US airlines and unions. Boeing is in discussions to sell up to 500 jets to China, a potential milestone for the US aerospace giant in the country’s aviation market, where orders have slowed amid trade tensions. The Transportation Department is giving Chinese carriers two days to respond, with a final order potentially taking effect as soon as November. Some US airlines have warned that direct East Coast flights to China are economically unfeasible without access to Russian airspace, requiring them to reduce passenger seats or cargo. (With inputs from agencies)
