BETA Presented by:
Submit your favorite Philanthropist
venynx jack
Posted December 7, 2018 by venynx jack
Despite Booming Demand American Airlines Can't Make Money Flying Chicago-Beijing? Will It Ever?

The Chicago area has more than 9.5 million people, is one of the world’s most dynamic business markets and is home to the sixth-busiest airport in the world by number of passengers.Shanghai to Singapore flights

The Beijing, China, area has nearly 22 million people, is the capitol of the world’s largest nation in terms of population (and one of the world’s fastest growing economies) and is home to the world’s second-busiest airport.

So you’d think that an airline could make money, good money, flying between those two cities, especially if it operated a big hub in one of them. But American Airlines apparently could not, so it’s going to quit trying, for now. When Beijing’s huge new $12 billion airport opens – scheduled for October 2019 though that date could slip a bit – American plans to relaunch the service using then, as yet unnamed Beijing airport rather than over-crowded Beijing Capital Airport. But for a year or more American will be out of a market that it fought for more than 20 years to serve.

American announced earlier this month that it’ll discontinue its Chicago-Beijing flying effective Oct. 20. The company admitted that except for 2010, the first year that it flew the route, it had never made a profit flying Chicago-Beijing.

In fact, it’s not clear that American, the world’s largest airline, will be able to turn a profit flying between Beijing and its hub at Chicago’s O’Hare International Airport once it restarts service using the new Beijing Airport. Competition for travel between the United States and China has heated up beyond anyone expectations, especially with lots of new service between China’s “second tier cities” (Shanghai, with 34 million people, Guangzhou with 25 million, and Beijing form the first tier) and multiple large U.S. cities.
No Comments. Login or Signup to be first.