China biggest threat to US airlines, report says
While the current focus is aimed squarely at the Gulf carriers of Etihad Airways, Emirates and Qatar Air, Chinese carriers pose a far greater threat for US airlines according to a report by aviation intelligence firm OAG.
US and Gulf carriers have been trading barbs over the issue of ‘unfair’ subsidies provided to the Gulf carriers.
However, China will replace the US as the largest aviation market in the next seven years, OAG’s ‘The Fight for Global Markets’ report claims.
John Grant, executive vice-president at OAG, says Chinese carriers such as China Southern, China Eastern and Air China could become the new ‘big three’ fuelled by fast growing domestic markets.
"Whilst it is perhaps impossible to predict the future of the airline industry, the evidence suggests that China, and also Indonesia and Turkey might be the places where three globally dominant airlines are based in ten years’ time, benefitting as they do from large domestic markets, growing economies and advantageous geographic position," he said.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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