Western Airlines Increasingly Withdraw From China
Episode Notes
Virgin Atlantic is pulling out of China after serving the country for 25 years. Virgin becomes the latest Western carrier to retreat from China, writes Airlines Editor Gordon Smith.
Virgin Atlantic cited “significant challenges and complexities” as the reason for its decision. The carrier’s final round-trip service to China will be London-Shanghai flights on October 25. Smith notes the closure of Russian airspace has made Virgin Atlantic’s journeys even longer and helped increase the company’s operating expenses.
Virgin Atlantic’s decision comes weeks after Qantas said it was pulling out of mainland China later this month.
Next, business travel spending by U.S. companies may finally top pre-Covid levels by the end of this year, writes Reporter Christiana Sciaudone.
A newly released report by Deloitte found that U.S. companies’ business travel spending is expected to grow between 8% and 12% this year. A Deloitte executive said that figure is projected to increase in 2025 as well due an increase in trips and higher airfares and hotel rates.
In addition, the Global Business Travel Association predicted earlier this year that most travel buyers expected their company’s business travel spending and volume to increase this year compared to 2023.
Finally, Apollo Global Management’s pending acquisition of The Travel Corporation could be a sign of more private equity deals to come in the tour operator and travel agency sectors, writes Executive Editor Dennis Schaal.
A source familiar with The Travel Corporation said multiple private equity firms had also expressed interest in the company.
The source added that travel agencies geared toward luxury consumers are attractive targets coming out of the pandemic. The Travel Corporation is a family owned business and one factor driving the sale was that there was no heir apparent, the source said.
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