Enterprise & Industry

Canada’s push to rebuild ties with China hits a snag: a lack of direct flights

Ottawa permits more flights, but fuel costs and airspace access deter carriers.

Deep Dive

Canada's transport minister Steven MacKinnon announced last week that Ottawa will permit an 'incremental increase' in direct passenger flights to China and up to 20 cargo flights per week. The policy shift is part of Prime Minister Mark Carney's strategy to rebuild the economic relationship with Beijing, hedging against rising tensions with the United States. The government statement explicitly frames the move as supporting the 'renewal of Canada's economic relationship with China.'

Despite this regulatory green light, airlines are unlikely to rush in. Soaring jet fuel costs and the lack of access to Russian airspace—due to the ongoing war in Ukraine—make many routes economically unviable. Chinese tourists have shown rising interest in Canada's 'open' natural scenery and culturally diverse cities, with Fliggy reporting steady booking increases to Vancouver, Toronto, Montreal, Calgary, and Ottawa. The resumption of group tours last year further boosted demand. However, without airline willingness to operate these routes, the policy may have limited immediate impact.

Key Points
  • Canada permits 'incremental increase' in direct flights to China and up to 20 cargo flights per week.
  • Airlines may be reluctant due to soaring jet fuel costs and lack of access to Russian airspace.
  • Chinese tourist demand for Canada is rising, with Fliggy reporting steady bookings to key cities.

Why It Matters

Flight limits could choke Canada's pivot to China, hindering trade and tourism growth.