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North Pacific air route development: Part 2 - US airlines’ risk aversion and Canada's restrictionism

In Part 1 of this report, we reviewed the higher than average traffic growth on the North Pacific over the past five years and the factors behind Asian airlines' route development.

In Part 2 we examine the aeropolitical environment on the Pacific and US airlines’ trans-Pacific roles. Canada's conservative policy is a constraint on Asian airline connections - and on potential air services to Latin America via Vancouver. Meanwhile, China's reluctance to move to open skies with the US limits American carriers' expansion plans.

The resurgence of US airline expansion is made possible not only by the prospect of market growth but also by their reincarnation as lower cost operations following bankruptcy and their subsequent mergers.

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