ISTANBUL–Visa restrictions, capacity caps and even Russian airspace overflights are stemming the restoration of capacity in and out of China, and the air transport industry hopes governments can reciprocate the relaxation of policies to resume air transport connectivity.

Speaking at the IATA annual general meeting in Istanbul, IATA Regional VP, North Asia, Xie Xingquan said that while China has removed the so-called Five Ones capacity caps for all airlines since early 2023, other regulators have not done so for reasons ranging from airport handling capacity to inter-government ties.

Xie said that after more than three years of “isolation,” Chinese carriers have lost the bargaining power to negotiate for slots and ground handling service at key airports.

China-U.S. air links, for example, are expected to increase to 24 weekly flights, but that figure is still just 6% of pre-pandemic levels. Xie said IATA has been encouraging airlines to ramp up capacity, but efforts have hit a wall as government ties have yet to thaw. Chinese carriers are also allowed to overfly Russian airspace—a competitive advantage and one reason why U.S. regulators have not restored all requested carriers. 

He added that Chinese passengers can go through alternative airports such as Hong Kong, Seoul and Tokyo to transit to the U.S. and Europe.

Xie believes overfly restrictions should not be a sanctions method, saying they “impede human connectivity.”

Echoing IATA, the Association of Asia Pacific Airlines (AAPA) Subhas Menon said the U.S. FAA’s requirements to retrofit aircraft with 5G tolerant radio altimeters will also deter Chinese airlines from flying into the U.S. should supply chain challenges prevent them from getting hold of these systems.

Menon said there is demand for travel to and from China regardless of political tensions and called for greater facilitation in the visa application process.

“I think it is not the right approach for North and West Asian airlines not being allowed to overfly Russia due to political reasons,” he said. “While we understand that it is because of the situation in Ukraine, it is imperative for carriers to be able to fly over to get to America and Europe. If the carriers have arrangements to overfly Russia into America, they should be allowed to do so, rather than sanctioning Asian airlines.”