If you’ve been planning a trip East anytime recently, you might have noticed a particularly good deal on flights – at least those operated by China’s state-owned airlines.
Fares on the country’s “Big Three” carriers – Air China, China Eastern and China Southern – are up to 35 per cent cheaper than European airlines for direct round-trip flights between China and western Europe, according to UBS aviation analyst Eric Lin. A return flight from Heathrow to Hong Kong via Beijing in October, for example, costs from £393 with China Eastern, as opposed to the next-cheapest option, £534 with Lufthansa via Frankfurt. Even a business class ticket to Bangkok can be yours for £1,533 return in November, December and January.
What’s behind the great deals? The Chinese government.
The Big Three were born in the 1980s when the Chinese Communist Party scrapped the former state-run monopoly – the Civil Aviation Administration of China, which controlled all aspects of the airline industry – in favour of three carriers, all of which benefit from direct subsidies from local and central governments, preferential treatment at Chinese airports, and fuel price regulation.
The result is that despite regularly losing money – all three are forecasting losses this year – they can keep increasing the number of flights and keep fares low. China Eastern last year increased its European capacity to 19 routes to Asia and 244 weekly round trips. In contrast, British Airways only operates one daily direct service to mainland China.
Another key competitive advantage for the Big Three is their ability to fly through Russian airspace. President Vladimir Putin banned most European airlines from flying over Russia in 2022, in response to Western sanctions imposed following Moscow’s full-scale invasion of Ukraine. This means BA and most European carriers have to fly more southerly routes to Asia, which adds up to four hours to flight times and increases fuel costs by around 15 per cent.
Last year, British Airways, Lufthansa and Scandinavian Airlines all suspended some routes to mainland China, citing the cost pressures of avoiding Russian airspace. Virgin Atlantic has permanently axed its flights from London to Shanghai. Announcing Lufthansa’s suspension of its flights between Frankfurt and Beijing, a spokesman explained: “European airlines are in an extremely unequal competitive position with China.” Chinese airlines are now expected to supply 63 per cent of all seats on flights to mainland China.
While fares may be cheaper, critics say flying with Chinese carriers also comes with risks. Some worry about flying over Russia. Malaysia Airlines flight MH17 was shot down by a Russian-made missile while travelling from Amsterdam to Kuala Lumpur over the Donbas region of Ukraine in 2014.
Customers need have no safety concerns, argues Willie Walsh, director general of the International Air Transport Association (IATA) airline lobby group. Walsh, the former CEO of BA, argues that the closure of Russian airspace “has nothing to do with safety, nor with security”. European airlines are “the victims of politics.”
Disruption and poor customer service might pose more concerns. Last month, hundreds of thousands of travellers had to scramble to change their plans after major Chinese airlines cancelled over 1,000 flights throughout the month, reportedly to manage fluctuating demand. Shanghai-based China Eastern cancelled 555 domestic and international flights – almost 18 flights a day, on average.
Although the airlines said they offered to rebook and compensate affected passengers, some travellers disputed this. One Air China passenger, Sara-Jo Gruner, wrote on Trustpilot in July that when her flight from London to Phuket was rescheduled by 24 hours less than a week before departure, the airline did not respond to at least 10 emails which she sent, nor did it offer the compensation – up to €600 (£520) – to which she was entitled.
Passengers also complained about the airlines’ delay policies and luggage information. One China Southern customer wrote on TripAdvisor that he was charged for exceeding the luggage allowance at the airport due to incorrect information on the carrier’s website.
My advice? Embrace the – much – cheaper fares, if you’re happy with a few scratchy moments and a mild degree of uncertainty. If reliability is a top priority, however, choose Emirates, Qatar Airways or Etihad.
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