Starting in January, British Airways (BA), one of the largest UK carriers, will suspend its services between London and Chengdu, the booming second-tier city in Southwest China's Sichuan Province.
The route is the only nonstop flight between western China and London. BA said that the move was decided because of poor performance. However, insiders said that the reason was failed negotiations over subsidies between the local government and the carrier.
In a note on Wednesday, BA said that "we regret that we have decided to suspend the Heathrow to Chengdu route. We have a proud tradition of flying to China, but despite operating this route for three years it is not commercially viable."
The route's final flight will be on January 13 departing from Chengdu.
Insiders said that the Civil Aviation Administration of China, to support development, will subsidize carriers opening regional flights in second and third tier cities, and local governments will also subsidize the carrier through airports to drive the local economy.
When asked about rumors of failing to agree on subsidies, Richard Tams, executive vice president of Greater China with British Airways, said in an e-mail sent to the Global Times on Thursday that "we are not in a position to comment on such suggestion."
Starting in January, British Airways (BA), one of the largest UK carriers, will suspend its services between London and Chengdu, the booming second-tier city in Southwest China's Sichuan Province.
