Outlook for China's Aviation Market

The video discusses the thaw in China-South Korea relations following the THAAD missile issue and its impact on Chinese carriers. Traffic on Korean routes has decreased, affecting profitability. Chinese carriers are increasing domestic capacity, which may affect yields if demand doesn't grow. The geopolitical instability of China affects Asian carriers, but the long-term growth prospects of the Chinese airline sector remain positive, with increasing visitor arrivals in Southeast Asia.

What factors are contributing to the thaw in relations between China and South Korea?

How has the deployment of the Thad missile affected the airline industry?

What are the implications of the 30% drop in traffic on Korean routes for Chinese carriers?

In what ways could the aggressive ramping up of domestic capacity impact the airline sector?

What are the long-term growth prospects for the Chinese airline sector despite short-term challenges?