News
American Airlines in limbo with slots from Beijing to Los Angeles
February 24th 2017
American Airlines is continuing its uphill battle with the Civil Aviation Administration of China (CAAC) as it applies to its own regulator, the U.S. Department of Transportation (DOT), for an extension of the commencement deadline for its proposed Beijing-Los Angeles flights. Read More » It would like either a one-year period from the original March 16 deadline or a date within 90 days of American obtaining commercially viable slots at Beijing Capital Airport.
The CAAC has yet to grant American slots for the new Los Angeles route, even at undesirable midnight or early morning slots. The slots no show has prompted the U.S. to call on the DoT to refuse to renew Air China’s Beijing-Houston route rights until the CAAC agrees to American’s request out of Beijing.
"American has been in regular contact with Chinese authorities concerning the availability of slots and has made plans to send one of its senior executives to China to discuss the issue in person," the airline said in its DoT filing. "Furthermore, American is in communication with other stakeholders about obtaining slots. American fully expects that its continued efforts will eventually prove successful," the carrier said.
“Chinese carriers hold large slot portfolios at Chinese airports that they use for their U.S.-China services and they face no comparable limitations at U.S. airports. This disparity provides Chinese carriers with a significant competitive advantage in serving U.S.-China routes and deprives the United States of the full level of U.S. carrier-operated services authorized by the U.S.-China Civil Air Transport Agreement, as amended.”
American and the CAAC have had differences in the past. In 2010, American’s inaugural Beijing-Chicago flight was cancelled at a day’s notice because the Chinese regulator failed to provide slots. Similarly, it took United Airlines years to be awarded suitable slots for a second Pudong-San Francisco service and Delta Air Lines has had difficult dealings with the CAAC.
Separately, American has submitted a new application to the DoT for antitrust immunity on its revenue sharing trans-Pacific joint venture with Qantas Airways. The partnership was rejected by the DoT last November when it cited “a high risk of competitive harm” given the partners would hold a combined market share of more than 60%.
