The latest victim of overcapacity is here. Seems like that's the excuse for everything these days.
Also Russian overflights.
The push has stoked tensions with foreign carriers who now find it harder to make a profit in a market estimated at $27 billion by McKinsey & Co. , and have withdrawn from routes that have become financially unsustainable, while blamed Chinese “overcapacity” for its weak performance in Asia. called its diminished business with the mainland “the new normal.”
Also Russian overflights.
While the imbalance may prove temporary, European and US airlines face structural obstacles that have made China less attractive. Chinese airlines can fly a shorter path through Russian airspace, which has been off-limits for US-aligned carriers since the invasion of Ukraine in February 2022. As a result, European airlines are disadvantaged by paying more for fuel and labor, and their flights keep customers in the air for longer.