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Department of Transportation adds administrative procedure for seven Chinese carriers flying to U.S.
May 29th 2020
The U.S. government this week imposed extra filing requirements for Chinese carriers in response to a Department of Transportation (DoT) directive that China was denying U.S. airlines a fair and equal opportunity to compete. Read More »
The May 22 order requested seven Chinese carriers file their existing schedules between any point or points in the U.S. and any point or points not in the U.S. It said Chinese airlines needed to file with the DoT any proposed flights at least 30 days before inauguration of the service.
Air China, Beijing Capital Airlines, China Eastern Airlines, China Southern Airlines, Hainan Airlines, Sichuan Airlines and Xiamen Airlines were told to submit their filings no later than May 27.
"Based on the facts before us, we find the government of China has, over the objections of the U.S. government, impaired the operating rights of U.S. carriers and denied them the fair and equal opportunity to exercise their operating rights under the agreement," the DoT order, signed by assistant secretary for aviation and international affairs, Joel Szabat, said.
"These circumstances require the imposition of the schedule filing requirements of 14 CFR Part 213 outlined in this Order.
"We conclude the public interest requires the captioned carriers to file their schedules so we may determine if the operation of the services contained in those schedules, or any part thereof, 'may be contrary to applicable law or adversely affect the public interest'.”
The U.S. decision stemmed from China's March 26 decision to impose a restriction on international flights in response to the coronavirus pandemic, the DoT said.
Under those restrictions, Chinese airlines were allowed to maintain one weekly scheduled passenger flight on one route to any given country. While foreign carriers also were allowed to maintain a one a week scheduled passenger flight on route to China, the DoT order noted the Civil Aviation Authority of China (CAAC) notice said Chinese and foreign carriers were required to use their international passenger flight schedules from March 12 as a maximum limit of the capacity in terms of frequency of passenger service.
However, by March 12, all U.S. passenger airlines had ceased passenger flights to China, while Chinese carriers had "generally maintained a degree of passenger service”.
"In establishing an arbitrary 'baseline' date of March 12, as well as the other restrictions cited above, the CAAC notice effectively precludes U.S. carriers from reinstating scheduled passenger flights to China and operating to the full extent of their bilateral rights while Chinese carriers can maintain scheduled passenger service to each foreign market served as of the baseline date, including the United States," the DoT order said.
This was inconsistent with the U.S.-China Civil Air Transport Agreement, which allowed airlines to operate combination and all-cargo services with full traffic rights subject to some frequency restrictions at certain Chinese airports, DoT said.
In recent weeks, Delta Air Lines and United Airlines had announced plans to resume nonstop passenger flights to China. However, the DoT order said the pair was yet to receive a response to their applications seeking approval from the CAAC.
This week, Delta Air Lines pushed back plans to operate nonstop between China and the U.S. from next week instead proposing a one-stop routing via Seoul Incheon.
The DoT said the U.S. government had repeatedly raised its objections to the notice with the CAAC, including a call on May 14 that addressed the inability of U.S. airlines to resume scheduled passenger service and exercise their full bilateral rights.
"In response, the CAAC informed the Department China is considering removing the March 12 schedule pre-condition. However, the restriction to once-weekly service on one route to China would remain in place," the DoT said.
Accordingly, it had decided to impose the schedule filing requirements.
In responses to the DoT order, Sichuan Airlines requested a waiver for the 30-day advance notice requirement for its proposed resumption of a once weekly Chengdu–Hangzhou–Los Angeles–Hangzhou–Chengdu flight either with A350-900 or A330-200 equipment from Friday, June 12.
The airline said a waiver would mean just two additional flights in what would be the 30-day notice period.
"Good cause therefore exists for a waiver to the extent the Department determines one is necessary," Sichuan Airlines said.
"If the Department determines a waiver is necessary and does not grant such a waiver, then Sichuan Airlines’ proposed start-up date for this service will be June 26."
Among other submissions, China Eastern Airlines outlined plans to resume flights to Chicago, Los Angeles and San Francisco and increase frequencies to New York’s John F Kennedy (JFK) airport from September 1.
China Southern Airlines listed in its submission plans additional frequencies to Los Angeles and to offer service to New York JFK and San Francisco, from various points in China – starting on July 1.
Xiamen Airlines told the DoT in its submission it proposed to begin flights to New York JFK from July 1 with 787 aircraft. Written by Jordan Chong.
