Amsterdam, Netherlands– KLM CEO Marjan Rintel has urged the European Union to implement financial measures tolevel the playing field for European airlines facing what she describes as unfair competition from their Chinese counterparts. Rintel’s call comes amidst growing concerns about thecompetitive disadvantage European carriers face due to China’s continued access to Russian airspace, a route unavailable to European airlines since the start of the Ukraine conflict.
Russia’s airspace is closed to European airlines, while Chinese carriers fly over it, Rintel stated. This can save them 2 to 4 hours of flight time, which is reflected in their pricing. Our costs are significantly higher, putting us at a disadvantage.
Rintel’s statement highlights a key point of contention: the discrepancy in operating costs between European and Chinese airlines. While European carriers face increased fuel costs and longer flight routes due to the Russian airspace closure, Chineseairlines enjoy a cost advantage by utilizing the shorter, more efficient route over Russia. This disparity, Rintel argues, creates an uneven playing field that undermines the competitiveness of European airlines.
The issue has been a source of frustration for European airlines for months. While the EU has taken steps to address the economic fallout of theRussian airspace closure, including financial aid packages for airlines, many argue that these measures do not adequately address the competitive imbalance created by China’s access to Russian airspace.
Rintel’s call for EU intervention comes at a time when the aviation industry is facing significant challenges, including rising fuel costs, labor shortages, andthe lingering effects of the COVID-19 pandemic. The added pressure of unfair competition from Chinese airlines adds further complexity to the situation, potentially jeopardizing the long-term viability of European carriers.
It remains to be seen how the EU will respond to Rintel’s call for action. However, the issue is likely toremain a focal point for discussions within the aviation sector as European airlines seek to ensure a level playing field in the face of growing competition from Chinese carriers.
References:
- KLM wants EU measures to combat ‘unfair’ competition from China, NL Times, October 6, 2024.
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