Coronavirus sends China’s aviation industry into free fall, damaging hopes of becoming global hub

Coronavirus outbreak has been hammer blow to travel worldwide, with more than 70 countries or territories putting restrictions on flights from China

Chinese government expected to step up support for ailing aviation sector, but China’s long-term plans for global dominance could be damaged

5-MIN READ5-MIN

The coronavirus epidemic has led to more than 70 countries and territories slapping travel restrictions and tightened visa requirements for travellers from China as of Thursday, jeopardising the country’s aims of being a global aviation hub.

Published: 5:00am, 6 Mar 2020Updated: 3:15pm, 25 Mar 2020

This is part of a four-part series looking at how the coronavirus epidemic affects China’s relationships with the rest of the world. Part three focuses on how the virus is causing China to lose ground in its quest to become a global aviation power.

China’s aim to become an international aviation hub is taking a beating, as fears of a global coronavirus pandemic continue to intensify.

The coronavirus, which causes the disease officially known as Covid-19, started in the Central Chinese city of Wuhan, before fanning out around the country and beyond. Now, while the number of new cases is falling daily in China, they are rising elsewhere in the world, ruining travel plans across the planet.

More than 70 countries and territories had slapped travel restrictions and tightened visa requirements for travellers from China as of Thursday, according to the International Air Transport Association (IATA).

China’s overall air traffic has rebounded from lows between January 20 and February 17, when it fell to 25th in terms of global market share, back up to second this week, according to data from OAG Aviation Worldwide.

However, this is mainly due to Chinese airlines cutting fares for domestic flights to record lows and the government handing out subsidies, rather than underlying demand, which remains extremely weak.

“Of the 2.9 million scheduled seats returning to the Chinese market, all but 3,000 are on domestic services,” read a blog entry on OAG Aviation Worldwide’s website on March 2. “Reports from industry sources suggest that the dramatic capacity recovery has led to very low fares being made available, as the Chines government seeks to repatriate locals after Lunar New Year.”

Shenzhen Airlines, a division of state-owned Air China, is running special offers charging just 100 yuan (US$14) for a one-way trip from Shenzhen to Chongqing, about 5 per cent of the standard price of 1,940 yuan (US$276) for the 1,000km (621-mile) journey.

SCMP Series

Strained China-US relations

[ 2 of 4 ]