U.S. to ban Chinese airlines in response to Beijing's move

WASHINGTON -- The Trump administration said Wednesday that it will ban all commercial passenger flights by Chinese carriers beginning later this month.

The change, announced by the Department of Transportation and beginning June 16, is in response to China's refusal to allow U.S. carriers to resume service to China.

The rule would impact operations of seven carriers, including Air China and China Eastern Airlines. The department noted in its rule filing that the ban could take effect sooner at President Donald Trump's discretion.

U.S. carriers applauded the Trump administration's move. "We support and appreciate the U.S. government's actions to enforce our rights and ensure fairness," said Lisa Hanna, a spokeswoman for Delta Air Lines.

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Added Katherine Estep, a spokeswoman for Airlines for America, an industry trade group: "We believe [the] order will ensure fair and equal opportunity for passenger airlines with respect to service to and from China. We hope that this process will protect the rights afforded to U.S. carriers under the current U.S.-China Air Transport Agreement."

U.S. carriers had halted flights to the region in the wake of State Department advisories cautioning against travel to the region and restrictions imposed by the Trump administration that barred most non-U.S. citizens from entering the United States from China because of concern about the spread of the novel coronavirus.

Delta and United airlines, however, had hoped to resume flights to China in early June, but U.S. officials said rules imposed by Chinese authorities effectively prevent them from doing so.

The Transportation Department's order does not impact cargo operations between the two countries.

Several U.S. passenger airlines have begun flying cargo in empty passenger planes as they struggle for revenue during the unprecedented downturn caused by the virus.

At the same time, air-freight haulers such as FedEx Corp. and United Parcel Service Inc. have had to ramp up operations in China to fulfill demand for medical supplies and other equipment.

"Our overriding goal is not the perpetuation of this situation, but rather an improved environment wherein the carriers of both parties will be able to exercise fully their bilateral rights," the rule says. "Should the [Civil Aviation Authority of China] adjust its policies to bring about the necessary improved situation for U.S. carriers, the Department is fully prepared to revisit the action it has announced in this order."

A representative of state-owned Air China, the nation's flagship carrier, declined to comment on the potential hardship to the company or would-be passengers, or on how the two sides might resolve the impasse.

The trade group that represents large U.S. carriers, Airlines for America, didn't immediately comment on the action. China's embassy in Washington also didn't immediately respond to an emailed request for comment.

This latest dust-up is just one of several ongoing disputes between the two countries. Trump has criticized China for not upholding its end of a trade agreement signed in January, in which Chinese officials pledged to increase purchase of U.S. goods by $200 billion over the next two years. The president also has criticized China for its handling of the coronavirus pandemic, and Chinese officials have similarly slammed the U.S. response.

U.S. officials also said they would crack down on potentially deceptive practices by Chinese carriers, who "may be using passenger charter operations as a way of circumventing" Chinese government limits on scheduled flights and gaining the upper hand on U.S. competitors.

Applications by Chinese carriers to run charter flights "may not have accurately reflected the true nature of the services involved," the Transportation Department said in its notice Wednesday, noting that it will now examine such applications with "the highest degree of scrutiny."

Chinese carriers have faced allegations that they applied to run numerous "repatriation" charter flights and ended up charging exorbitant fares and disadvantaging U.S. carriers in the process.

Information for this article was contributed by Lori Aratani and Michael Laris of The Washington Post; and by Alan Levin, Ryan Beene and Mary Schlangenstein of Bloomberg News.

A Section on 06/04/2020

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