Monday Update – April 27, 2020

The Coming China CCP Litigation

Airports Might Have Recourse…

But Beijing-CCP Has Lots of Buddies In The USA

Let’s be absolutely clear.

U.S. airports are in line to incur billions in financial losses this year. Seattle alone has indicated a quarter-billion loss for the rest of 2020.

The entire U.S. airport system – the most extensive in the world – is now mostly quiet terminals with an occasional empty scheduled flight and possibly some limited business and GA operations.

The fact is that the CCP-COVID pandemic has destroyed our air transportation system for the time being, and has inflicted long-term damage to airports across the USA. It is not a natural event… the proof is clear that it is the criminal malfeasance of the Chinese Government that allowed this to happen.

Every airport has indeed been a victim of the CCP-COVID pandemic, and may want to pursue whatever determinations are made by the U.S. government regarding the total culpability of the Chinese government. As this situation winds down, there will be enormous pressure to revisit the disgusting and intentional way the CCP manipulated and mishandled the virus. Rather than again go over the sordid details, you can log onto, and check out the Intelligence tab.

Is a Political Party The Same As A Country? In regard to getting recompense, one of the open questions appears to be whether a sovereign nation can be sued or held accountable for criminal actions and damages resulting from them.

So, the question that the legal and diplomatic entities involved in these suits will be probably considering is whether officially and technically the Chinese Communist Party – which was calling the shots – is a “sovereign nation,” or is it a political party that just happens to operate in China.

It is the de facto government of China, to be sure. But is the CCP itself the same as “China?” As a political party, they’ve been in business since the 1920s… it’s only since 1949 they’ve had a monopoly on the political gig in China.

What Really Are the Damages – Hard Defensible Numbers. We are not in the litigation business, but if you are considering any such participation, it will be imperative that you have a solid projection regarding the actual damage that the CCP-COVID pandemic has done to your airport. This is where BGI can help.

Danger of Losing China Air Traffic? Don’t Worry. It’s Vaporized, Anyway. One of the logical concerns for large U.S. airports in taking a stand is that in doing so, any chances of increased air service access to and from China would be out the door.

Whether it’s a rural airport or a huge international hubsite, rest easy. After China’s malfeasance in regard to this virus, and the deflation of its economy, passenger traffic between the two countries is essentially dead. Flat-lined. Draw a chalk line around it. The drivers of that traffic are gone.

In 2019, the total O&D between the U.S. and China was @8.2 million. In 2021 and beyond, our Airports:China forecasts indicate less than 500,000.

The heady days of the moon-shot trajectory of China-U.S. travel are over. BGI has been directly involved in researching this area over the past five years, and now the upward spikes seen year after year from 2003 to 2017 are over. The CCP-COVID situation, as well as major political shifts since the accession of Xi Jinping to the head of state, have completely torpedoed these expectations.

Therefore, any reticence to pursue paths for remediation on the basis of losing lucrative future China flights is misplaced. That damage has been done, and the open question is whether there are avenues for legal redress from the CCP for the damages inflicted by their actions.

Beijing’s First Line of Defense: Buddies In The USA With A Dog In The Fight. Take a look at a lot of what’s been reported on the CCP-COVID pandemic. Despite the overwhelming proof of the actions of the CCP, there are lots of folks in the business world, the media, the philanthropy sector, and the global consulting sector that are front and center defending Beijing.

That’s because they have interests to protect in China. Parochial interests. Any and all efforts to illuminate what the Chinese government has done will be aggressively attacked. The misinformation so far from these sectors is amazing, and it is a lead-pipe cinch that they will be Beijing’s heavy artillery on the ground in the U.S. to shortstop any attempts to hold them accountable.

Where BGI Can Help. This would include reasonable and supportable enplanement and operational forecasts – both pre-CCP-COVID and the realities of post-CCP-COVID air service… the losses in local revenue to the airport… the loss of economic impact as a result… the future loss of revenue and fallout from known or expected changes in airline strategies and fleets. And a lot more.

U.S. airports have been fundamentally damaged directly due to the CCP’s cover-up of the virus. The actual – and defensible – data will be eye-opening.

A complete airport CCP-COVID economic impact report can be a valuable tool in keeping communities aware that this situation is for the time being structural.

Also, there will be a lot more class-action efforts aimed at China, and having hard numbers would be an asset should an airport or community would decide to participate.

At the least, the community needs to understand that this financial hit is not going to get fixed in the near term.

In this regard, give us a call or email and we can discuss putting the numbers together to assure that your community is fully aware of the future.

More Information: We will be expanding on this and posting on the Intelligence tab at Log on and take a look… it is a source of unvarnished information on the aviation-related effects of the CCP-COVID pandemic.