YVR-CAN is currently 7x weekly for S20, so the extra 3 weekly are also gone for now (hence the question of where CZ will use those frequency on).
Normally, Chinese city will subsidize a route for up to 3 years. Now looking at some examples:
SZX-SEA: began Sept 26, 2016; ended Sept 25, 2019
CGO-YVR: began Nov 11, 2016; ended Nov 5, 2019
CAN-MEX: began Apr 10, 2017; to end Mar 29, 2020
Hmmm......
By the way, PEK-YYC began June 30, 2016... and this winter is the first to be outside of the 3 years period and the route is already down to seasonal. I wonder if subsidy was involved too....
Quote:
Originally Posted by WestCoastEcho
A couple of these Chinese airlines are teetering on the brink of insolvency, so maintaining slots to fly to Canada, which is unprofitable as it is (witness the extremely depressed prices as everyone is trying to undercut each other) might not be in their best interests moving forward, especially since it was revealed that in general, all of the Chinese airlines collectively were bleeding money massively on international flights. They can't keep this going for much longer before capital runs out.
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Firstly, CA, MU, CZ, and 3U are currently just fine.
Secondly, most of the airlines are making huge profits on domestic route, and they use them to subsidize long-haul. Even if long-haul are bleeding money, they are still making profit overall. This is what's keeping them going for so long.
And thirdly, there are subsidy. If a route is really unprofitable, then airline will shut it down after exactly 3 years when the subsidy stopped (see above). When subsidy is ongoing, they are almost guaranteed to not lose money, so why not just fly near-empty planes to keep the slots?
By the way, subsidy for YVR-TAO and YVR-NKG should be expiring by the end of this month. So far both routes seems to be fine running over the rest of the winter season, so I don't see they'll do anything to them over the summer....