Problems Arise With American's New Chicago- Beijing route

Filed in archive Aviation News on April 26, 2010

Today American Airlines announced that their highly anticipated Chicago- O';hare- Beijing non-stop route was being postponed. In the official directive posted on their website, they cited a lack of commercially viable slots in Beijing. Apparently, Chinese aviation authorities didn't like something about American's application. Or maybe American didn't adhere to the guan xi principles (paying off the right people ).





"Trouble in paradise? Beijing's new terminal may be a little emptier after American postponed their new route."


I'm obviously kidding, but if the reports are true, this is just another blow to American's re-vitalization plan. Already shut down from flying to Tel Aviv because of TWA, American's pilots have the right to deny American's intent to serve any route. Why is this a problem? Well American can't operate a long-haul route or buy the aircraft to do so without their pilots signing off on it. It's the only reason American hasn't firmed up that 787 order.

The new Beijing route was American's latest attempt at tapping into the lucrative, growing, Asian markets, especially China. Other than their existing Chicago- Shanghai route, American's presence in Asia outside of Japan is minuscule. American really needs Beijing to work, because otherwise, they might not be able to make any route work (the Beijing market is growing fast!!!).

China's reluctance to work with American could turn into a headache for The People's Republic as well. With all the recent outcry over its treatment of foreign companies (see Google), the Chinese aren't going to be too happy if this blows up in their face. Why would it? Just consider the obvious. If China is seen as being hostile to a large, important US corporation, especially one looking to provide new competition, it is a reasonable conjecture, that the WTO will get involved. Could China be forced to back down? If they won't, then this is just the latest blow to American's growth potential.

Flickr Credit: http://www.flickr.com/photos/brostad/4151934877/