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2020-06-02 | All chapters

European Chamber Report Raises Concerns Over Sustainability of Operating Environment for Airlines in China

Beijing, 2nd June 2020 The European Union Chamber of Commerce in China (European Chamber) today released In for the Long Haul: Developing a Sustainable Operating Environment for Airlines in China. The report provides analysis on China’s operating environment and its impact on the sustainability of European airlines active in China.

China’s current system governing airlines pushes Chinese carriers to adopt short-term strategies that emphasise global market share rather than efficiency and profitability, which will damage the long-term viability of both Chinese and foreign airlines. The resulting lack of competition on long-haul routes in China, along with the continuous flow of non-essential financial support from local governments, is boosting capacity beyond demand.

The report outlines how this situation can be rectified through reforms to China’s slot allocation procedures, financial support practices, air traffic management system and bilateral aviation agreements, to bring China more in line with international norms. In the meantime, the report cautions European countries to fully understand the complexities of China’s market, particularly when renegotiating bilateral air traffic rights.

“Although the EU and China are working towards better alignment of their respective airline sectors, we are not there yet,” said Philippe Bardol, chair of the Aviation and Aerospace Working Group of the European Chamber. “EU-China dialogue on aviation must therefore continue, in the interests of creating a sustainable and competitive environment for airlines worldwide.”

Note on the COVID-19 Pandemic: This report was written based on the challenges experienced by European airlines prior to the start of the COVID-19 outbreak, which has caused significant global disruptions, especially in the aviation industry. The impact on the airline sector is expected to be severe, and this report does not aim to speculate about such an uncertain future. While the COVID-19 pandemic and its effects are mentioned throughout this report, the content primarily focusses on the structural and long-term challenges of the regulatory and operating environment for airlines in China's aviation sector, which are expected to endure after the coronavirus outbreak.

Download the report here.

 

中国欧盟商会发布报告,关注在华航司的监管和经营环境中的结构性和长期性挑战

北京,2020年6月2日—中国欧盟商会于今日发布最新主题报告:《深耕远程航线—为在华航司构建可持续的经营环境》,本报告关注在华欧洲航司所面临的监管和经营环境中的结构性和长期性挑战。

中国现行的航司管理模式意在推动本土航司尽快扩大全球市场份额,而不在意航线的利用效率和盈利能力,这种短期策略将影响中外航空公司的长期经营发展。由此导致长距离航线的运营在中国缺乏竞争,加之地方政府长期给予不必要的资金支持,最终导致航司长距离航线的运力远超出了现实需求。

本报告介绍了应如何通过推动政府改进,包括时刻分配方式,财政支持体系,空中交通管理系统和双边航空协定缔结在内的诸多方面,以推动中国航空业进一步符合国际规范。同时,报告也提醒欧盟成员国应充分认识到中国航空市场的复杂性,在与中国重启航权谈判时特别要做好准备。

“尽管欧盟和中国都在努力为如何推动双方航空产业的发展达成共识,但事实上实现这一目标还需要更多地努力,” 中国欧盟商会航空航天工作组主席白幻德先生表示。“因此,为了给全球航空业营造一个可持续的竞争环境,中欧双方必须要继续推动关于航空业的双边对话。”

本报告是根据欧洲航空公司在新冠疫情爆发开始之前经历的挑战而撰写的。而新冠疫情已引起全球范围的重大破坏,尤其是在航空业。本报告在撰写之时,正值一段充满不确定性的时期,任何对未来的预测都只能基于猜测,这不是本报告的本意。因此,虽然新冠疫情及其影响在报告中有所提及,但报告主要关注参与中国航空产业的航司所面临的监管和经营环境中的结构性和长期性挑战。中国欧盟商会认为这些深层困扰长期存在,与新冠疫情爆发造成的扰乱无关,因此也更为关键。

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