Air Canada Boosts China Flights as Canada Eases Travel Restrictions

Air Canada is set to increase its flight services to China following the Canadian government's decision to ease travel restrictions. This expansion aims to cater to the rising demand for travel between Canada and China, enhancing connectivity for travelers. The move reflects a broader trend of reopening international travel and signals a positive outlook for the aviation industry as restrictions are lifted.

Air Canada announced on Wednesday that it will increase its direct flights between Canada and China, although current service levels remain below those seen before the COVID-19 pandemic, despite the airline adding capacity to other routes in the Asia Pacific region. The largest carrier in Canada stated it will resume daily flights from Vancouver to Beijing starting January 15 and increase flights to Shanghai to a daily schedule beginning December 7.

The Civil Aviation Administration of China’s news outlet indicated that this decision follows the recent lifting of a 2022 cap on the number of flights Chinese carriers could operate to Canada, as announced by Ottawa last week. CAAC News reported that the increase in flights between the two nations is expected to enhance trade, support their economies, and further facilitate the recovery of air travel between China and Canada. A source in Canada confirmed this development to Reuters.

In July, Canada committed to stabilizing relations with China by pursuing “pragmatic” engagement with the country, which is the world’s second-largest economy, despite ongoing trade tensions. Following the end of COVID-era travel restrictions, air travel between Canada and the United States to China has not fully rebounded, even as airlines are adding more seats to other Asia Pacific destinations. Earlier this year, Air Canada, which is scheduled to report earnings on Friday, expressed optimism for stronger demand for Pacific routes in the latter half of 2024. The CAAC article noted that Chinese airlines are also expediting applications for additional flights.

Conversely, major U.S. airlines have delayed resuming some flights to China due to a lack of sufficient travel demand between the two largest economies. In 2019, Air Canada operated up to 35 flights weekly to China, including from Toronto, while Chinese carriers provided 76 direct round-trip flights, according to Cirium flight schedule data. Following the implementation of a zero-COVID policy, China largely closed its borders to travelers and suspended many inbound flights.

In February 2022, Canada imposed restrictions limiting Chinese carriers to only six round trips per week into Canada and barred direct flights from Canada to Beijing. However, these restrictions were lifted last Friday, according to an order from the Canadian Transportation Agency. Lin Jian, a spokesperson for the Chinese foreign ministry, expressed gratitude for Canada’s initiative and hoped the country would continue to foster favorable conditions for personnel exchanges.

Canadian carriers face challenges compared to Chinese airlines due to their inability to utilize Russian airspace since the onset of the Ukraine conflict in 2022, which makes flights from Toronto to China commercially less viable due to longer travel times. Meanwhile, Chinese carriers have maintained access to shorter northern routes over Russia for flights to Europe and North America, gradually increasing their market share against non-Chinese airlines due to this advantage.

Bilateral relations, which began in 1970, soured in 2018 when Huawei CFO Meng Wanzhou was arrested in Canada, leading to the detention of two Canadians in China. Although all three were later released, allegations of Chinese interference in Canada have kept relations tense. Recent months have seen increased trade tensions after Canada considered banning Chinese-made software in electric vehicles to address overcapacity and security concerns. In September, Beijing initiated an anti-discrimination investigation into Canada’s restrictive measures, including additional tariffs on Chinese electric vehicles and steel and aluminum products. Following Foreign Minister Melanie Joly’s visit to China—the first by a Canadian foreign minister in seven years—Beijing agreed to normalize relations with Ottawa in July.

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Source: Reuters‍