U.S. airlines urge Biden to pause additional China flights
Major U.S. airlines and unions are asking the Biden administration to pause additional flights between China and the United States.
Caroline Woods brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Friday, April 12.
Full Video Transcript Below:
CAROLINE WOODS: I’m Caroline Woods reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are under pressure as persistent inflation and geopolitical fears weigh on investors. The Consumer Price Index showed that inflation isn’t quite slowing down, stoking fears that the central bank could keep rates higher for longer.Investors are looking ahead to earnings next week with names like Netflix, American Express, Goldman Sachs, United Airlines, and Bank of America set to release quarterly results.
In other news, U.S. airlines are asking the Biden administration to halt its approval of additional flights to and from China. Industry lobby group Airlines for America, which represents American Airlines, Delta, and United, wrote a letter to both Secretary of State Antony Blinken and Transportation Secretary Pete Buttigieg asking for the pause.U.S. airlines say that Chinese carriers installed harsh limits to market access during the pandemic, and also imposed strict rules that affected American carriers, customers, and the treatment of airline crews.
The industry group said things only got worse in 2022 when China continued to use Russian airspace, while U.S. airlines stopped using it as a result of the invasion of Ukraine.In the letter, the group wrote, “The competitive disadvantage is harmful to the approximately 315,000 workers employed by U.S. passenger airlines that serve China.
If the growth of the Chinese aviation market is allowed to continue unchecked and without concern for equality of access in the market, flights will continue to be relinquished to Chinese carriers at the expense of U.S. workers and businesses.As of March 31, Chinese carriers were authorized to make 50 weekly round trips from the U.S., 15 more than previously allowed. However, that’s still far below pre-pandemic levels, when more than 150 weekly round trip flights were allowed.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Caroline Woods with TheStreet.
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