As the tensions between the US and China continue to rise, the Trump administration has decided to address China’s current ban on incoming US carrier flights. As a move meant to increase pressure on China, the US government has decided to ban Chinese passenger airlines from making scheduled flights into the US effective June 16.
During the height of the coronavirus pandemic, China made the move to significantly decrease incoming air traffic as a means of mitigating the spread of the virus. Thus, the US was only allowed one passenger flight per week – a drastic decline given that back in January there were 325 flights per week between the two countries, Although China’s ban on US flights is most likely in response to the virus’s high infection rate rather than a move to specifically escalate tensions, it was nonetheless perceived as a threat by the Trump administration.
The US order will not have an affect on flights from Hong Kong, but it will ban flights by several predominant Chinese airliners including China Eastern, Xiamen, Air China, and China Southern. If however, China decides to lift their limitation on incoming US passenger service and allow airline companies such as United Airlines and Delta Airlines, which are currently struggling through the pandemic to resume flights, then the US Department of Transportation will correspondingly reverse their order.
Information for this briefing was found via CNBC and US Department of Transportation. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.