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.