Trump seeks fair play! US asks China to not fly over Russia; ‘gives Beijing airlines competitive edge over American carriers’

The Trump administration has made another attempt to ensure fairness for US workers, asking China to bar its airplanes from flying over Russia as it puts American airlines at a disadvantage.The US government on Thursday presented a proposal to stop Chinese airlines from flying over Russia on routes to and from the United States, arguing that this gives them a major competitive edge over American carriers.The US transportation department said that the current arrangement was “unfair and has resulted in substantial adverse competitive effects on US air carriers,” Reuters reported. By flying through Russian airspace, Chinese airlines can cut travel time, save fuel, and lower costs.Why can China fly over Russia but US can’t?American carriers lost access to Russian skies in March 2022, when Washington banned Russian flights over US territory after Moscow’s invasion of Ukraine. Russia responded by blocking US and many other foreign airlines from its airspace. Chinese airlines, however, were not restricted and have been using this advantage to grow their international market share.US’ new proposalThe new proposal would apply the same overflight restrictions to Chinese carriers operating passenger routes under US-issued foreign air carrier permits. Cargo-only services would not be affected.If approved, the rule could impact US flights operated by Air China (601111.SS), China Eastern (600115.SS), China Southern (600029.SS) and Xiamen Airlines. Hong Kong-based Cathay Pacific (0293.HK) flies over Russia on its New York–Hong Kong route, but it was not named in the order, according to Reuters. Effects on marketShares in China’s three biggest airlines slipped slightly on Friday after the news. Air China fell 1.3%, China Southern dropped 1.8% and China Eastern eased 0.3% by midday. The state-owned carriers have posted five straight years of losses since the pandemic.US-China tensionsThe move adds to wider US–China economic tensions. Earlier, Beijing tightened export controls on rare earth minerals, key for some US industries. Meanwhile, Boeing is in discussions to sell up to 500 aircraft to China, a potential breakthrough after years of stalled orders.US President Donald Trump and Chinese President Xi Jinping are expected to meet in South Korea later this month to discuss trade and other issues.Chinese airlines have been given two days to respond to the proposal. A final order could take effect as soon as November.In May 2023, the US allowed more flights by Chinese airlines after they agreed to avoid Russian airspace on new routes. Last year, Washington capped Chinese passenger flights at 50 round trips a week, backing away from further increases after lobbying by US airlines and unions. Before the pandemic in early 2020, both sides allowed more than 150 weekly round trips.Some US airlines have told the Trump administration that direct flights from the East Coast to China are not financially viable without access to Russian airspace. Longer routes mean some planes must fly with empty seats and reduced cargo to manage fuel limits.