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China Eases Restrictions on Airline Competition

by Megan Hill

Jun 11, 2018

© Fotoglee | Dreamstime.com

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China’s aviation regulatory body is easing restrictions, requiring each route to be operated by only one Chinese carrier. This opens the possibility for increased travel options on long-haul routes.

The policy was established in 2009 as a means to limit excessive competition among the Chinese state-owned airlines, especially on low-demand routes. The changing industry, as well as a new international airport opening in Beijing next year, influenced the Civil Aviation Administration of China to change course.

The new regulations will go into effect Oct. 1, and affect routes to Australia, Thailand and the United States, having at least partial open skies agreements with China. These will become unrestricted routes.

Long-haul routes to other countries without these agreements in place will be lumped into a second category that will have some restrictions.

“This will be a positive long-term development for Chinese airlines whose international route expansion have been limited by traffic rights access,” Corrine Png, chief executive, transport research consultancy Crucial Perspective, told Reuters.

The new policy will allow China Eastern and China Southern to add long-haul markets long dominated by Air China.

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