U.S. Airlines Once Considered China a Potential Gold Mine. Not Anymore.
Photo Credit: Hawaiian Airlines will stop flying from Honolulu to Beijing in October. It will deploy the Airbus A330 it had been using on the route to more promising markets. Hawaiian Airlines
Skift Take
For years, travel insiders have figured all brands, including airlines, would make big money in China. That is almost certain to happen someday. But it's not the case now, and with fuel prices rising, it makes sense that U.S. carriers are reevaluating their strategies.
About two years ago, lawyers from American Airlines and Delta Air Lines traded surprisingly nasty insults against each other in public filings, as each carrier wanted what was then a precious resource: The only remaining daily rights to fly between the United States and China's three largest cities — Beijing, Shanghai, and Guangzhou.
American won, allowing it to start a new flight from Los Angeles to Beijing last year, even though Delta argued its proposed route between the same cities would offer a "superior experience for customers." It was big news, as China is among the most world's most protected aviation markets. Unlike most other countries, where airlines can launch whatever flights they want, both governments limit flights.
It seems like ancient history. What was once among the most promising long-haul markets for U.S. airlines has turned sour amid higher fuel prices and increased competition from Chinese airlines, which have driven down prices. American soon will cance
