WASHINGTON — Three major U.S. airlines formally opposed Air China's request to the Department of Transportation for 14 additional weekly flights between the two nations. United Airlines, Delta Air Lines, and American Airlines filed objections, arguing the expansion would create competitive disadvantages backed by state support.
Air China seeks to increase U.S. capacity by 30 percent, primarily on routes connecting Beijing and Shanghai with Los Angeles and San Francisco. The three carriers contend that Air China already benefits from government subsidies and favorable access to capital unavailable to unsubsidized U.S. operators.
Analysts estimate a 10 percent capacity increase could depress average fares three to five percent on competitive routes. For airlines operating on margins of five to eight percent, the revenue impact is material. Load factors and yield management on trans-Pacific routes would deteriorate, affecting investor returns in a sector already facing fuel volatility and labor cost inflation.
The dispute reflects broader U.S.-China trade tensions over reciprocal market access. Aviation agreements often influence bilateral investment flows and broader trade negotiations. A DOT approval could signal concessions on market access; a denial may escalate trade friction across other sectors.
The Department of Transportation expects to issue a preliminary decision within 60 days. Interested parties may submit additional arguments through October 28, with a final ruling anticipated before year-end.
