According to CAPA, China's airlines are looking at the Latin American market in the context of government incentives to globalisation. China International Airlines currently operates to St Paul and Havana (China International Aviation as a Latin American area). In April 2017, China Southern Airlines opened the route from Vancouver to Mexico City.

Hainan Airlines has Brazil Azul airlines and TAP airlines and Portugal shares, HNA Capital Airlines to open Beijing to Lisbon route, so HNA can open to Lisbon as a transit route in Latin america.

China Eastern Airlines has always relied on code sharing to do business in the Latin American market, but now it is considering opening its own route. It is reported that Eastern Airlines is currently assessing direct flights from Shanghai to Mexico City and taking Mexico City as a transit route to South South America. On this route, Eastern Airlines can cooperate with Mexico airlines and also facilitate the long - saturated parking space of Mexico airport. United States airlines will play a guiding role in cooperation with both Eastern Airlines and Mexico airlines.

Latin America is not the core of the strategy, but China Airlines must have a sense of existence

The growing Latin American route reflects several rules of the Chinese civil aviation industry. First, profit is not the only index considered by Chinese airlines. Second, the government plays a key role in the planning and development of civil aviation. Third, the self-confidence of Chinese airlines is increasing.

For Chinese airlines, the Latin American market is not very important in business, at least on the surface. But under scrutiny is not the case, because it relates to the response to the government's goal of Globalization (April 1st fool's day this year, Hainan Airlines issued a news route opened to Antarctica, but some people think that a few years later, it may not be a joke).

The airline is actively carrying out the strategic plan proposed by the government, and in turn, the airlines, especially the state-owned airlines, will be protected by the government.

The passenger flow between Latin America and Asia has increased rapidly but the base is small, which inevitably restricts the feasibility of commercial development. Historically, due to the convenience of geographical location, transit airlines from Europe, Mexico Bay and North America have long controlled Latin American to Asian markets. Apart from the route from Tokyo to St Paul, the passenger flow between other cities in Latin America and Asia is very fragmented, which is very unfavorable for the routes between the destinations and the destinations. Even if there are appropriate routes to emerge, direct flights are almost impossible given the distance between Latin America and Asia. It's no problem to go directly to Mexico City from Asia, but as far as the current flight is, it is an impossible task to go straight to South America.

For most newly opened international routes, subsidies and incentives are essential. Because of the support from China, the transfer side and the Latin American side, the airline's loss is also acceptable to China Airlines.

Fifth air rights support China Airlines at the transfer airport and the state

Since it is difficult to achieve from China directly to Latin America, China Airlines will naturally think of the transfer airport. It also has a chance to bring more flights to the transfer airport and the country. Of course, in the rush hour, the situation will be more difficult, because commercial flights scheduling is quite complex, and the airport needs the air traffic control department to handle the transfer flights and the fifth shipping rights.

Chinese airlines often think of air rights afterwards. Although some foreign airlines will reluctantly accept the large number of third and fourth aviation rights granted by their governments, they will be debated about the fifth shipping rights.

For example, Canada's airports, especially Vancouver, hope that China Airlines will transfer to Canada for the Latin American region, but the airport must take into account the attitude of Canadian Airlines. Canadian Airlines is the lifeblood of Canada's major airports. If it annoys Canadian Airlines, the airport may lose a lot of business.

There is another complex situation in Canada, which is that China Airlines has limited air rights. The Chinese government has not been able to obtain a large number of third and four shipping rights. Therefore, seeking more fifth aviation rights may mean abandoning some third and four shipping rights, or exchanging the national aviation rights with other countries. In addition to the question of air rights, the question of whether the joint transport is feasible is also in front of the Chinese airlines. (it's very complex in Canada, but it doesn't exist in the United States)

China Eastern Airlines considers Mexico as a transit route to South America

The next route from China to Latin America may come from China Eastern Airlines. China International Airlines and China Southern Airlines currently have fixed Latin American routes, making Eastern Airlines the only state-owned airline without Latin American routes. Eastern Airlines also did not open the African route, it seems that in the completion of the strategic objectives of the government, Eastern Airlines has some backlash. However, from a historical point of view, Eastern Airlines has been lagging behind in the long distance route market, and the current speed of catching up is somewhat slow.

The Chinese government has been calling on airlines to open Latin American routes in recent years, but before that, Eastern Airlines has been through the code sharing of Tianhe alliance to achieve business coverage in Latin America. It is reported that Eastern Airlines is considering opening its own airline now, and has been evaluating the direct route from Shanghai to Mexico City, then transferred from Mexico to South America.

Mexico Airlines has now opened its flight from Shanghai to Mexico City by Boeing 787-7, every Wednesday, but it will stop in Tijuana when it returns. The high altitude of Mexico airport, the limited length of the runway and the tradition of taking off from the West are not conducive to the direct return of the airport. It is understandable that China Eastern Airlines hopes to achieve two-way direct access with the help of new aircraft technology, A350-900s and 787-9s aircraft in 2016. Mexico airport will also strengthen its operational capacity.

  For China Eastern Airlines, Mexico Airlines is a partner rather than a competitor. They can integrate the route resources of both sides and coordinate their respective hub airports. Mexico Airlines occupied 39% of Mexico City's seat capacity in April 2017, according to data from the data analysis firms OAG in the air market.

Mexico airlines can also help orient airlines get a better parking space at the already saturated Mexico airport. Delta Airlines has a large share of Mexico airlines and a small share of Eastern Airlines, so there will be some influence in the strategic cooperation between Eastern Airlines and Mexico airlines. The share of these shares may be small, but the strategic recommendations of the United States will be constructive.

China Southern Airlines and all day airlines operate the route to Mexico City

China Southern Airlines and All Nippon Airways routes have been opened in February 2017 to Mexico City, if Chinese Eastern Airlines successfully opened, it will be Chinese second, Asia third to Mexico City passenger line (Cathay Pacific temporarily only to Mexico City freight service). Mexico Airlines currently operates three Asian routes from Mexico City to Seoul, Shanghai and Tokyo.

In April 2017, China Southern Airlines opened the first Latin American route for Guangzhou - Vancouver - Mexico City by the frequency of every Wednesday class. At present, the route is held by Boeing 787-8. As previously Chinese International Airlines has been in Montreal to Havana route. Chinese number from Canada for fifth freedom rights, so this route Chinese Southern Airlines in Vancouver there is no right boarding.

At present, China Southern Airlines Guangzhou - Vancouver - Mexico City airline has increased to ten classes per week.

Beijing capital aviation has submitted to the CAAC application for the opening of the Beijing to Mexico City route. At that time, in order to get the favor of the Beijing government and take the initiative in the use of Beijing's Second International Airport, Capital Airlines applied for many ambitious plans including the airline. The route has now been abandoned by Capital Airlines.

China International Airlines operates routes to St Paul and Havana

China International Airlines has the longest history in Latin America, and has the only Chinese airline in the south of South America. As early as 2006, China International Airlines has opened the Beijing - Madrid - St Paul route, which is currently held by Boeing 787-9, and two shifts a week. After Korean and Singapore Airlines exit the Brazil market, China International Airlines has become the only Asian airline operating in South America.

China International Airlines also has flights to Havana. Although Cuba is a North American geographically, China International Aviation takes Cuba into Latin America out of strategic and cultural considerations.

In September 2015, China International Airlines opened the route from Beijing to Montreal. In December, the route extended to Havana. As for why it has not been extended from the beginning, China International Airlines believes that Montreal to Havana routes are very low and cost resources.

But from a geopolitical point of view, Beijing is in great need of a route to Cuba. The route of China International Airlines to Montreal is now maintained on every Thursday class, and the route from Montreal to Havana just started for every Wednesday class. Now it has been reduced to only one class per week. From a commercial point of view, the volume of passenger traffic can be seen.

Although there are three countries in China, there are airlines, but China International Airlines is the actual national airline. As a result, China International Airlines has to open more "political routes" than southern and Eastern Airlines.

Hainan Airlines seeks to make use of the investment relationship with Azul and TAP

Hainan airlines, which is under the flag of HAIC group, is the fourth largest airline in China.

Because Hainan Airlines owns the share of Brazil Azul airline and Portuguese TAP airline, Hainan may make full use of its two participating companies in the Latin American business. Azul airlines to class every Friday frequency operates flights to Lisbon, which is the only European airlines.

Portuguese TAP Airlines is the fifth largest airline between Europe and Latin America, taking up a 4.7% market share of 15000 seats per week. Air France has a 40000 seat capacity to lead other airlines. But for HAIC, TAP airlines are already rich in these resources.

The TAP airline itself is not currently flying to Asia, but sea Airlines is preparing to open the first route between China and Portugal. HNA Capital Airlines from July 6, 2017 opening of Hangzhou - Beijing - Lisbon route, fly the Airbus A330-200 models, class every Wednesday. This makes the HNA able to Lisbon transit operations in Latin America, but the details have not yet been fully finalized.

Outlook: for China Airlines, the Latin American market is not a business focus but strategic significance

The route between China and Latin America will increase, but most of this will be geopolitical. Even if China's airlines integrate a variety of cooperative relationships, the sustainability of the business perspective will be very challenging.

In the short term, due to the existence of various subsidies and the lack of shipping rights in core long-distance routes such as Canada, the United States and Germany, the Latin American market is still attractive to Chinese airlines.

More options for China Airlines will be given to Australia, as well as to give more air to France, New Zealand and the UK. These markets also determine the market share and profit of China Airlines' long distance routes.