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Home  >  cathay pacific • News  >  USA Threatens To Ban Cathay Pacific
cathay pacificNews

USA Threatens To Ban Cathay Pacific

Matthew Klint Posted onMarch 17, 2021March 17, 2021 5 Comments

Citing unfair treatment for U.S. carriers in Hong Kong, the United States will scrutinize Cathay Pacific’s schedule and if found to “adversely affect the public interest” may ban Cathay Pacific from both cargo and passenger service to the USA.

USA May Ban Cathay Pacific Due To Disparate Crew Treatment In Hong Kong

The issue stems from a February 5th order from Hong Kong mandating a strict quarantine for Hong Kong-based crewmembers returning from outside China. One exception was included in the order: crews returning from Anchorage would not have to quarantine.

As it so happens, flag carrier Cathay Pacific has a cargo hub at Ted Stevens International Airport in Anchorage (ANC). Most of Cathay’s cargo service to North America routes through Anchorage. FedEx, one of its main competitors, has a base in Hong Kong from which it operates within Asia.

Practically, the quarantine requirement impacted FedEx and not Cathay Pacific. With extended quarantine requirements for pilots, FedEx was forced to move crews to San Francisco, making intra-Asia operations much less efficient and more expensive. As a U.S. Department of Transportation report notes, this move incurred “significant operational costs and personal burden on its Hong Kong crewmembers.”

Hong Kong Blows Off U.S. Government + FedEx

FedEx and the United States government sought to work with Hong Kong on a compromise, but Hong Kong took nearly a month to respond and when it did respond, said only that it would consider the matter further. No timeframe was provided. Hong Kong also failed to explain why Anchorage was exempted.

Underlying the Open Skies agreement between the United States and Hong Kong  is the guarantee of “a fair and equal opportunity to compete in the U.S.-Hong Kong market.”

Too Little, Too Late

As the DOT puts it, the consideration to create an equal exemption for FedEx is too little, too late:

“Hong Kong already has significantly harmed the U.S. carrier’s operations and drastically upended the competitive dynamics of the market by implementing an exception for Anchorage.”

Consequently, DOT has demanded that Cathay Pacific file its proposed cargo and passenger schedules so that is can “scrutinize” them (the implication is clear: Cathay Pacific faces an imminent ban if it does provide a quarantine solution for FedEx):

“We conclude that the public interest requires that the captioned carriers file their schedules for all-cargo, passenger, and combination services so that we may determine whether the operation of the services contained in those schedules, or any part thereof, may be contrary to applicable federal law or adversely affect the public interest.”

CONCLUSION

In cases like this, the following usually occurs: the US threatens, the offending country backs downs, and life goes on. Will Hong Kong create an extra exception for FedEx operations in Hong Kong? I suspect the answer is yes.

image: Cathay Pacific

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

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5 Comments

  1. Mai Poon Reply
    March 17, 2021 at 4:49 am

    Only logical step. If the chinese – and I refer to Honkong people explicitly like mainland chinese – take a sole advantage than the counter measure of DOT is adequate.
    After all these poltical steps in degrading HK to a communist city, I do not see any differences between mainland and the enclave. So it is only righteous that HK and its administration di not get any symphaties or advantages which only to a democratic cou try and society.

  2. Andrew M Daly Reply
    March 17, 2021 at 7:29 am

    FedEx can move its HKG base to NoiBoi airport in Hanoi, Vietnam. They would be warmly welcomed. I am a US citizen, living in Hanoi.

  3. HkCaGu Reply
    March 17, 2021 at 9:09 pm

    I suppose the ANC exception involves double crewing pilots so they don’t have to get off at ANC?

    • Matthew Klint Reply
      March 17, 2021 at 9:15 pm

      Not sure, but CX cargo operations go through ANC to many destinations in the USA and Canada. There’s not way that the crews all do direct turns.

  4. Esteban Reply
    March 20, 2021 at 7:17 am

    Poor CX, nothing good for them after 1997.

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