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CAPA TV | September 27, 2020

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Exploiting The Regulatory Toolbox In Higher Growth Markets: JVs, Equity Ownership, Alliances, Codeshares, Sixth Freedom Partnerships…Serving Asian Markets

  • On April 23, 2018

Asia’s airlines are continuing to embark on what they consider to be once-in-a-lifetime long haul growth. Nowhere is this more significant than in mainland China, whose airlines have been busily opening over 100 new intercontinental destinations since 2006.

Japan too remains a key market, still retaining a strong proportion of premium travel and relatively high leisure yields. Under the US-Japan open skies regime, JVs can be forged – at least between the respective oneworld and Star Alliance partners.

But in the US-China market, where Chinese carriers dominate, lack of progress with open skies discussions and patchy relationships between both countries’ respective airlines could put Chinese growth plans in check. There has been some move to acquire equity holdings in Chinese major airlines, with American into China Southern and Delta linking China Eastern into an intriguing mènage à quatre with Virgin Atlantic and Air France-KLM.

  • China-US market in focus: Does anyone in the US now want open skies?
  • Does the Japan JV example offer any solutions? How even is the playing field between China and the US?
  • What is limiting US airlines access to China’s key markets?
    – Slot allocations and infrastructure (Does new airport infrastructure at Shanghai and Beijing promise relief?)
    – Airspace restrictions, protectionism?
    – The characteristics of the market?
  • How important is the Japan market in the long term?
    – In its own right
    – As an intermediate point
  • Are non stop ultra long haul services from the US to south and north East Asia sustainable for the network carriers – or is the market too price sensitive?
  • How important is it for US network carriers to maintain capacity on strategic routes to defend market share?

Moderator: CAPA – Centre for Aviation, Executive Chairman, Peter Harbison

  • Air China, Vice President & General Manager, North America, Zhihang Chi
  • Japan Airlines, Vice President Marketing & Strategy Research, Asia & Oceania Region, Akihide Yoguchi

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