Airline invasion of the US: Gulf airlines extend into the west, Chinese airlines grow in the east

While US airlines focus on traditional domestic housekeeping, they are largely overlooking the bigger, faster growing - but more risky - long-haul international markets. This short termism may well come back to bite them. In their absence Chinese and Gulf airlines are re-shaping international travel to and from the United States. A decade ago they collectively operated half a million annual seats to the US; in 2014 it is over four million. By nature of demand and technical requirements they initially focussed on the US points relatively closer to home, with Gulf carriers planting themselves on the eastern coast and Chinese airlines on the west coast.

But now the two groups are reaching further inland, with Gulf carriers expanding to the west coast. Emirates will up-gauge its San Francisco service to an A380 while Etihad in Nov-2014 will launch a San Francisco service. Chinese airlines are extending their reach to the eastern part of the US, with Hainan Airlines launching Boston, Air China Washington Dulles and China Southern New York JFK. Gulf capacity quickly overtook Chinese capacity, with Gulf carriers in 2014 having twice the seat capacity of Chinese airlines. In recent years the Chinese growth rate has picked up but is still below that of Gulf carriers.