KLM Requests EU Action on China’s ‘Unfair’ Competition

KLM Royal Dutch Airlines has called⁤ on the European Union (EU)‌ to address what it considers to be “unfair” competition from Chinese airlines. KLM CEO Marjan Rintel stated that Europe should explore ways ​to level the playing field, either through pricing or alternative approaches. The issue ⁣stems from ⁢Russia closing its airspace to most European airlines in ​2022 as a response to Western ​sanctions over the conflict with Ukraine. As a result, ⁣European ⁣airlines have had⁢ to take longer routes, avoiding Russian ‍airspace and increasing flight ⁣times ⁤and costs. Rintel explained that this detour adds between two to four hours ⁣of flying​ time for KLM flights, leading to ​higher prices for customers.

In contrast, Chinese,⁢ Middle Eastern, and other airlines have been allowed access to Russian airspace. This grants them shorter flight ⁤times and lower costs compared to their European ‌counterparts. Additionally, these⁤ airlines benefit ⁢from substantial government subsidies.

Lufthansa also expressed concerns about unequal competition from other countries, particularly ⁢China. The German airline is considering whether it⁣ will ⁣continue operating daily flights between Frankfurt and​ Beijing due to high costs, ​weak demand, and unfair competition.

British Airways previously announced the suspension of flights ⁣between London and Beijing until ⁢November 2025 for similar reasons.

Experts suggest that any measures ⁣taken by‍ the EU against China’s competitive practices⁣ would be effective if EU countries act collectively. ⁣They highlight that foreign trade plays a significant role in ⁢China’s economy—accounting for approximately 17-18% of ⁣its ​GDP—with ‌the US being its largest market followed⁣ by the EU.

To address this issue in aviation specifically, experts propose⁢ potential actions such as closing airspace or reducing flights against‌ Beijing’s unfair competition practices. They⁢ argue that ‍only through such measures can Europe restrain ⁣China’s behavior while adhering to international trade rules.

The reduction in flights from Western airlines reflects declining‌ numbers of foreign businessmen visiting mainland China due⁢ to safety concerns surrounding geopolitical tensions with‍ Russia⁣ and decreased tourism overall.

European⁣ countries’ decisions regarding flight cancellations are seen​ as responses ⁤not only related directly but also indirectly linked with China supporting Russia during the Russian-Ukrainian war.‌ The EU has criticized⁤ China for backing ​Russia secretly and warned of ​consequences​ it must face as a ‍result.

As dissatisfaction towards China grows among European nations like the Netherlands—whose ‍former Prime Minister Mark Rutte recently became NATO Secretary General—the‍ relationship between these countries is expected worsen further due their critical stance towards Beijing.

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