Chinese Airlines Are Gaining Fast as Western Carriers Exit Market

Key Points

• Western airlines are exiting China due to longer and more expensive flight routes caused by the prohibition on flying over Russian airspace.
• Chinese airlines benefit from shorter flight distances, resulting in lower costs and increased market share.
• Airline executives express frustration over the competitive advantage of Chinese airlines and call for regulatory interventions.

Summary

Western airlines like British Airways and Virgin Atlantic are pulling out of China due to longer and more expensive flight routes necessitated by the prohibition on flying over Russian airspace. This change has given Chinese airlines a commercial advantage, allowing them to offer lower fares and increase their market share. Airline executives are frustrated by this imbalance and are calling for regulatory interventions to level the playing field.