Major U.S. airlines moved to block Air China from adding flights to the United States, setting up a fight that moved roughly 500 billion dollars in market value.

What happened

Air China applied to operate additional flights into the United States. Major U.S. carriers are opposing the bid. The dispute comes as Mexico's president reported a very good call with Trump and said her country is working to reach a trade deal soon.

Why it matters

Keeping a foreign carrier from adding routes protects U.S. airlines' market share and pricing power on lucrative international flying. But it also risks escalating trade friction in aviation just as other trade disputes appear to be cooling. The stakes are high enough that the market's reaction touched roughly 500 billion dollars of value.

The case against

Granting Air China's request would expand travel links between the two largest economies. U.S. consumers and connecting airports would gain more flight choices and potentially lower fares.

What settles it

The U.S. Department of Transportation's decision on Air China's application and any counter-moves from Chinese aviation authorities.

Companies in this story