Air China, China Eastern Airlines and China Southern Airlines — each announced new domestic route launches. China’s three largest carriers announced something few might have imagined half a year ago, when the country was in the throes of the coronavirus outbreak. Significant for the carriers was that it was announced in piecemeal fashion; instead, each of the carriers rolled out more than 10 new routes, many of them between second and third-tier Chinese cities. Indeed, the announcements of October underscore the rapid domestic recovery seen by the Chinese airline industry — one that has been helped by the Chinese government’s ability so far to keep the virus under control. It is also a strange juxtaposition against the gloom other carriers in Asia and around the world are experiencing, as they hunker down amid a pandemic-driven downturn.
In 2021, it is likely Chinese carriers will continue to see domestic market growth, as they tap into more second and third tier markets, as part of the Chinese government’s attempt to spur development in these areas. While it is anyone’s guess when mass international travel will resume, it is very certain that Chinese carriers will be quick to seize on pent-up travel demand when it comes. China Eastern itself owns two of these new carriers: Shanghai-based OTT Airlines, as well as Sanya International Airlines, based on Hainan island, the launches of both carriers announced in 2020. While China Eastern has not disclosed any timeline about these two carrier’s launches, it is certain that work to launch these carriers will stretch into 2021, with OTT already on the cusp of beginning operations. This crisis has shown no recovery can be taken for granted. After consecutive months of steady recovery, China’s three largest carriers reported their first month-on-month domestic traffic slump the first in more than half a year, in November — with at least one carrier blaming a resurgence in domestic coronavirus cases for the decline.