[Asia Economy Beijing=Special Correspondent Park Sun-mi] The global aviation industry, which was on the brink of bankruptcy due to the impact of the novel coronavirus infection (COVID-19) and the closure of air routes, has found relief with China's easing of restrictions on international flight operations.
On the 4th (local time), U.S. airline stocks such as American Airlines (41.27%), United Airlines (16.20%), and Delta Air Lines (13.73%) surged sharply, reflecting optimism following China's decision to ease international flight operations. As of 10 a.m. on the 5th, Korean airlines including Korean Air (9%), Asiana Airlines (5%), Jin Air (5%), T'way Air (6%), and Jeju Air (1.7%) also rose simultaneously.
China announced on the 4th that it will allow all foreign airlines to resume operations on China routes starting from the 8th.
The Civil Aviation Administration of China’s regulation, which has limited each airline to operate only one route once a week since the end of March to prevent overseas COVID-19 re-importation, will in principle remain in effect. However, the regulation has been relaxed to allow foreign airlines not included in the existing international flight operation plans to select destinations within their operating permits and operate one international flight per week starting from the 8th. Additionally, depending on passengers’ COVID-19 test results, airlines are permitted to increase the number of flights up to twice a week. Airlines thus have the opportunity to double the current number of flights on China routes.
The aviation industry expects it will take a considerable time until passenger demand recovers, but since China, a large market, has allowed some countries with controlled risks to appropriately increase flights under certain conditions, there is an atmosphere of anticipation for further route expansions in the future. There is also hope that other countries may gradually shift toward expanding international flights.
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