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U.S., Chinese carriers look to profit from new China-US routes

by amit.uniyal 24. December 2013 08:42

Leading Chinese and U.S. carriers are trying to make sense on how to expand their respective profitability base on China-U.S. routes. Considering the fact that flights between United States and China have become quite lucrative, the carriers from the two countries are increasing capacity or introducing new flights. Media reports recently said that Chinese and U.S. carriers are aggressively trying to increase their market share and earn big revenues for themselves.

The reports said that the U.S. carriers are greatly concerned with the extensive efforts being put by Chinese airlines during the recent years. American carriers firmly believe that the Chinese carriers have made a major dent in their revenues with the rapid increase in their market share on the profitable U.S.-China routes. So far, the U.S. carriers were the major beneficiaries by making profits on flights between the two countries, but of late the introducing of new flights and increasing of capacity by Chinese carriers have made the U.S. carriers quite worrisome.

During a recent survey conducted by a reputed research firm it was pointed out that American carriers accounted for 53 percent of the flights between the United States and China this year. The study showed that the U.S. carriers faced a decline in their revenues on China-U.S. routes by 59 percent as compared to 2012. The Chinese carriers however succeeded in garnering the remaining 47 percent market share. Currently, four major Chinese carriers including Air China, China Southern Airlines, Hainan Airlines and China Eastern Airlines conduct flights on China-U.S. routes. The U.S. carriers that operate flights between the two countries include United Airlines, American Airlines and US Airways.

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Tags: china us airlines

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