European airlines are urging the EU to address the increasing calls for unfair competition from Chinese airlines.
On Wednesday, several European airlines gathered at an industry news conference in Brussels, urging the EU to take more measures to ensure fair competition within the industry. The reason being that Chinese airlines enjoy a significant cost advantage by flying over Russian airspace, while European airlines are prohibited from entering Russian airspace by Moscow authorities.
One of Europe’s largest airlines, Lufthansa, CEO Carsten Spohr, called on the EU to make changes at the press conference, demanding that all flights entering Europe avoid Russian airspace to ensure fair competition.
According to Reuters, Spohr was quoted as saying, “We cannot fly over Russia, but Chinese airlines can. If you want a fair competitive environment, we need to ensure that any airlines landing in Europe avoid Russian airspace. Until this is done, Chinese airlines will have a huge advantage.”
Additionally, additional environmental costs make it even more challenging for European airlines to compete with Chinese airlines.
Spohr mentioned that Chinese airlines do not have to bear the costs associated with the European Union Emissions Trading System (ETS), giving them another financial competitive edge.
Recently, KLM Royal Dutch Airlines also urged the EU to take action against the “unfair” competition posed by Chinese airlines that can fly over Russian airspace.
KLM Royal Dutch Airlines Chairman and CEO Marjan Rintel stated on a TV program on October 6th that Europe should at least attempt to adjust pricing or take other measures to prevent this unfair competitive situation.
Since the outbreak of the Ukraine war in 2022, Chinese airlines have still been able to fly to Europe and North America via Russian airspace, taking a shorter northern route. In comparison, European and American airlines and those from other countries have ceased flying over Russian airspace due to Russia’s flight ban or safety concerns.
According to Reuters, OAG senior analyst John Grant stated, “Typically, operating costs for Chinese airlines are more than 30% lower than their international competitors.”
Currently, airlines such as Virgin Atlantic Airways, British Airways, Scandinavian Airlines, LOT Polish Airline, and Lufthansa have suspended flights to China.
Meanwhile, due to subdued Chinese travel demand and geopolitical influences, airlines from the US, Australia, Asia-Pacific, and other regions have also been withdrawing from the Chinese market, in addition to Europe.