We previously wrote about how the U.S. Department of Transportation accused China’s “Five One” policy of violating the U.S.-China civil aviation agreement. According to a Reuters report, the U.S. government told Reuters it would announce today (June 3) a ban on Chinese airlines flying to the United States, possibly starting on June 16. We have now obtained the order issued by the Department of Transportation, confirming that beginning June 16, all passenger flight schedules submitted by Chinese airlines have been denied approval by the U.S. Department of Transportation. If approved by the U.S. President, it could take effect immediately.

U.S. Department of Transportation: Notification and Order Disapproving Schedules

The U.S. Department of Transportation’s Position

The Department believes the “Five One” policy has had the effect of discriminating against U.S. airlines. Both Delta and United tried to resume U.S.-China routes starting in May, but were not approved. The U.S. Department of Transportation also communicated with the Civil Aviation Administration of China multiple times. In a May 14 conference call, the CAAC said it would consider removing the restriction of “reductions only, no increases,” which would allow U.S. carriers to also operate one weekly flight.

CAAC’s Response

On May 25, the Civil Aviation Administration of China (CAAC) replied that the “Five One” policy does not violate the U.S.-China air transport agreement because the policy applies to both domestic and foreign airlines and is fair and transparent.

On May 25, 2020, the CAAC submitted a letter to the Department asserting that its Notice is not inconsistent with the Agreement because its provisions “equally apply to all domestic and foreign carriers, being fair, equal and transparent.” The CAAC says it does not “wish to be obliged to respond by taking countermeasures on U.S. carriers” and urges the Department to revoke its order.

However, the CAAC was unable to provide a definite plan that would allow U.S. airlines to operate U.S.-China service.

The U.S. Department of Transportation’s Decision

The U.S. Department of Transportation believes that, based on the facts above, the Chinese government has impaired the rights of U.S. airlines to conduct transportation under the agreement and has violated China’s obligations under that agreement. In the public interest, the Department should take action to restore competition on U.S.-China routes. Therefore, the Department will prohibit operations of any China-U.S. passenger flights by Chinese airlines starting June 16.

The U.S. Department of Transportation said it does not want to escalate the matter. If the CAAC adjusts its policy, the Department stands ready at any time to reconsider whether this ban should remain in effect.