Trump proposes barring Chinese airlines from flying over Russia on US routes

WASHINGTON, Oct 9 (Reuters) - The Trump administration on Thursday proposed banning Chinese airlines from flying over Russia on routes to and from the United States, saying the reduced flight time this practice enables puts American carriers at a disadvantage.

The proposal is another escalation of the trade war between the world's two largest economies and was announced after Beijing on Thursday tightened controls for rare earths exports crucial for some U.S. industries.

U.S. airlines have long criticized the decision to allow Chinese carriers to use Russian airspace on U.S. routes because it gives them the advantage of decreased flying time and burns less fuel, lowering costs.

Russia has barred U.S. airlines and many other foreign carriers from flying over its airspace in retaliation for Washington banning Russian flights over the U.S. in March 2022 after the country invaded Ukraine.

Chinese airlines were not banned and have been using this advantage to increase market share compared to non-Chinese carriers on international routes.

The U.S. Transportation Department said on Thursday in its proposed order the current situation was "unfair and has resulted in substantial adverse competitive effects on U.S. air carriers."

The current proposal to apply the overflight restriction to U.S.-issued foreign air carrier permits does not apply to cargo-only flights, it added.

A spokesperson for China's foreign ministry on Friday said the restrictions were not conducive to person-to-person exchanges.

The Transportation Department's decision could affect some U.S. flights operated by Air China (601111.SS)

, opens new tab, China Eastern (600115.SS)

, opens new tab, Xiamen Airlines and China Southern (600029.SS)

, opens new tab.

The order did not name Hong Kong-based airline Cathay Pacific (0293.HK)

, opens new tab, which overflies Russia on its New York to Hong Kong route, according to flight tracking website Flightradar24. Cathay did not immediately respond to a request for comment.