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Chinese airlines grab market share from US and European carriers who have to fly around Russia

Inside China Business | August 15, 2024

US and European airlines are banned from Russian airspace, and so must route around the world’s largest country. This is causing much longer and costlier flights between North America and Europe, and destinations in Southeast Asia. Chinese, Korean, and Indian airlines still enjoy Russian overflight privileges, however, and can thereby offer shorter and less expensive fares. As a result, Chinese carriers are gobbling up markets and gates across international markets. Chinese airlines already operate with 30% lower costs on a passenger-mile basis compared to US- and European-flagged carriers, and their cost advantages only multiply after adjusting for the issues involving Russian airspace.

Resources and links:

Flight maps from Great Circle Maps http://www.greatcirclemap.com) and Reuters, Unfriendly skies:

How Russia’s invasion of Ukraine is redrawing air routes https://www.reuters.com/graphics/UKRA…

A year into Russian airspace ban, flight costs and lengths are rising https://globalnews.ca/news/9645165/ru…

Flight Radar, Which major airlines are still flying over Russian airspace? https://www.flightradar24.com/blog/wh…

British Airways axes one of its ‘most important’ routes amid Russian airspace ban https://www.independent.co.uk/travel/…

Reuters, British Airways to halt flights to Beijing from Oct. 26 https://www.reuters.com/business/aero…

Reuters, Foreign airlines lose interest in China as domestic carriers expand abroad https://www.reuters.com/business/aero…

Bloomberg, US Airlines Urge Officials to Block Additional China Flights https://www.bloomberg.com/news/articl…

Europe buying Russian oil via India at record rates in 2023 despite Ukraine war https://www.independent.co.uk/news/wo…

Reuters, Airbus wins reprieve from Canadian sanctions on Russian titanium https://www.reuters.com/business/aero…

Closing scene, Qingdao Olympic Sailing Center and Lighthouse, Qingdao, Shandong

October 6, 2024 - Posted by | Economics, Russophobia, Video | ,

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