Hainan Airlines is expected to commence a new Beijing-Las Vegas air service starting from December, challenging the only Asian airline to currently have a presence in the North American city, Korean Air. The three weekly flights between Las Vegas and Beijing will begin from December 2.
According to a press release issued by the Las Vegas Convention and Visitors Authority, the Chinese airline filed an application with the U.S. Department of Transportation on August 4 “to launch an historic new route connecting Las Vegas to Beijing, the first-ever nonstop flight between Las Vegas and mainland China. The service will begin December 2, 2016 and will initially operate Mondays, Wednesdays and Fridays.”
The announcement has come at an unusual time, in the midst of Chinese president Xi Jinping’s anti-corruption campaign, which has deterred high spenders from visiting Macau. Now a direct route will open up between the Chinese capital and the world’s second largest gambling hub.
The consequences in store for Macau remain unclear at the present moment. Las Vegas is much further away than Macau – an 11-hours direct flight versus 4 hours – which might reduce its attractiveness for high rollers and the mass market gamers.
There are also many other locations closer to Beijing that could become centers of regional gaming, such as in Russia’s eastern Primorsky region, South Korea and possibly soon, Japan.
On the other hand, Las Vegas’ distance might provide an enticing shelter from the prying eyes of state officials in China. Additionally, Las Vegas’ comparative advantages over Macau in the area of entertainment tourism, as well as its proximity to other North American destinations of interest means it might pull Chinese customers for reasons other than gambling.
While the move may appear to be a calculated reading of the market, some analysts are suggesting that it is less strategic than initially thought and more borne from necessity.
China’s “one airline, one route” policy means that Chinese air carriers are normally prevented from serving identical routes to their domestic competitors, unless specific exemptions are granted.
Air China, being the country’s flag carrier and arguably the largest international Chinese carrier, is privileged with serving most of the first-tier destinations from Beijing, sidelining the potential for Hainan Airlines to enter these routes.
Instead Hainan has focused on North American cities at least partially neglected by other carriers, such as Chicago, Boston, Toronto, and now Las Vegas.
Hainan Airlines is undertaking large investment projects and developing routes to Portugal, as well as to other long-haul destinations. They have taken a share in TAP, Portugal’s national carrier, and are now a part of the board as a major shareholder.
Last year, the airline launched a new route between Macau and Hainan’s provincial capital, Haikou, providing three weekly flights on Mondays, Wednesdays and Saturdays.
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