Dutch Royal Airlines Calls on EU to Act to Curb Unfair Competition by China

【Epoch Times, October 10, 2024】The ongoing Russia-Ukraine war has lasted for over two years, with the closure of Russian airspace affecting Western airlines while Chinese airlines remain unaffected. Recently, Royal Dutch Airlines has sought EU measures to curb what they perceive as unfair competition from Chinese airlines, leading some airlines to reduce flights to China.

Experts predict that as Chinese aid to Russia continues, relations between Europe and China will deteriorate, leading to the implementation of various economic sanctions.

Royal Dutch Airlines has urged the EU to combat what they consider “unfair” competition from Chinese airlines that can fly over Russian airspace.

Marjan Rintel, CEO of Royal Dutch Airlines, stated during an interview on WNL television on October 6, “Europe can try to prevent this unfair competition through pricing or other means.”

She emphasized that avoiding Russian airspace would add 2-4 hours to flight times, resulting in higher costs that would be reflected in ticket prices.

Rintel suggested considering adjusting pricing or adopting different approaches to prevent unfair competitive environments.

Mainland Chinese media reported on the unfair competition scenario as the “Russian airspace ban helping Chinese airlines win the competition.”

Since Russia’s full-scale invasion of Ukraine in 2022, Western countries have imposed sanctions, leading Russia to ban 36 countries’ airlines from flying over its airspace. This forced airlines to take longer routes, increasing fuel costs and flight times, with additional expenses per flight reaching tens of thousands of dollars. On the other hand, Chinese airlines continue to use Russian airspace, offering shorter routes and lower operating costs, leading to an expansion in flight capacity.

Su Ziyun, Director of the Strategic and Resources Institute at the Taiwan Institute for National Defense Security, expressed to Epoch Times that, “EU has been resisting Russia, and in such situations, European airlines will have to take detours, making their flights longer. Conversely, since China has not joined the resistance, it utilizes Russian airspace, saving time and costs, thereby creating unfair competition.”

He believes that persisting with this approach may not bode well for Beijing in the long run. “By aligning with Russia, Beijing isolates itself, rallying European countries together, which will be detrimental to China.”

In response to Royal Dutch Airlines urging the EU to take action, Su Ziyun stated, “The EU has increased tariffs on Chinese electric cars by nearly 34%, so now that the aviation industry is sending distress signals, the EU is likely to respond.”

He suggested that if the EU takes action, it could suppress Beijing’s unfair competition in two ways. “First, by demanding Beijing reduce flight frequencies to adjust ticket prices, thus prohibiting malicious competition.”

“Secondly, if Beijing refuses to reduce flights, the EU may gradually close off parts of its airspace, preventing Chinese planes from landing or forcing them to detour, thereby compelling them to raise prices.”

“The key lies in whether the EU can unite and take coordinated action against the threats posed by China,” he added.

Retired General and former Dean of the Political Warfare College at the National Defense University, Yu Zongji, remarked to Epoch Times, “Economic sanctions are a double-edged sword; sanctioning China will naturally result in relative losses and damages for European countries. I believe China will not passively accept this and will seek to influence government policies through pro-China political parties or business organizations within European countries.”

“Democratic countries must form a cohesive economic policy or collectively impose trade sanctions on China. However, it remains unclear whether these combined influences can materialize, and to what extent sanctions will be enforced.”

Not just Royal Dutch Airlines, an increasing number of Western airlines have started cutting flights to China, including British Airways, Lufthansa, among others. On October 9, Scandinavian Airlines announced the suspension of flights from Copenhagen to Shanghai.

Su Ziyun noted, “EU unity would be highly effective. Since China heavily relies on external trade, primarily with the EU.”

Data indicates that in 2023, EU-China trade reached $815 billion, making the EU China’s largest trading partner. Su Ziyun explained, “China’s trade dependence on the EU amounts to approximately $280 billion. Commercial flight routes, including tourism and business travel, are vital due to the market being within the EU.”

Yu Zongji mentioned that Europe is nearly China’s second-largest export market after the US, and in the long run, this could economically devastate China.

“Due to China’s support for Russia, Europe’s dissatisfaction with China is escalating rapidly. Therefore, various economic sanctions and punitive actions are likely to increase. As long as the conflict between Russia and Ukraine persists, tensions will only escalate, and bilateral relations will further deteriorate.”

On October 1, former Dutch Prime Minister and NATO Secretary-General, Luete, stated that China has become a key enabler for Russia in the Ukraine war and that support for Russia must come with consequences.