EU Airline Executive Seeks Payment from Chinese for Airspace Use Over Russia

Marjan Rintel, the CEO of KLM, has expressed that Brussels ought to implement financial measures targeting the airline's competition from China. Read Full Article at RT.com

EU Airline Executive Seeks Payment from Chinese for Airspace Use Over Russia
KLM’s CEO has called on the European Union to tackle the “unfair” competition arising from the bloc's sanctions against Moscow.

According to Royal Dutch Airlines CEO Marjan Rintel, Brussels should implement financial measures to mitigate competition from Chinese airlines that can operate freely in Russian airspace.

In response to the sanctions put in place by Western nations following the start of the conflict in Ukraine in 2022, Russian airspace was closed to Western airlines. Consequently, Moscow imposed a ban on aircraft from “unfriendly nations,” which has compelled EU carriers to alter their flight paths, leading to increased fuel consumption and elevated operational costs.

“Russia's airspace is closed to European airlines, while Chinese carriers fly over it, which can save two to four hours. You see that reflected in pricing, and consequently, our costs are higher,” Rintel remarked during an interview with Dutch broadcaster WNL on Sunday.

To address this competitive disparity, Rintel suggested that Brussels should consider potential interventions. “Europe can at least explore how we can level the playing field by adjusting pricing or examining other alternatives,” she asserted.

In light of rising operational costs, KLM is instituting austerity measures aimed at achieving annual savings of €450 million, which includes plans to save €100 million by “adjusting” in-flight catering, as noted by Rintel.

“In the Netherlands, we are facing a tight labor market and rising wage costs, which differs from the situation in France,” she mentioned, referring to KLM’s parent company, Air France-KLM. “Due to a shortage of pilots and technicians, roster changes will occur, and maintenance may need to be outsourced,” she elaborated.

Last month, Germany revealed it was contemplating the discontinuation of its daily Frankfurt-Beijing flights due to similar challenges posed by rising costs and competition from Chinese and Gulf airlines that have the ability to fly over Russia. In the previous month, British Airways announced it would halt its London-Beijing flights starting in October. Additionally, Virgin Atlantic has recently ended its sole route to Shanghai in China.

Ian Smith for TROIB News