beijingwalker
ELITE MEMBER
- Joined
- Nov 4, 2011
- Messages
- 65,195
- Reaction score
- -55
- Country
- Location
European Airlines say Chinese have ‘unfair advantage’ flying over Russia
Feburary 17 2023European airlines have warned they will struggle to compete with Chinese rivals as travel rebounds after Covid-19 lockdowns because they are forced to take longer routes to Asia to avoid flying over Russia. Ben Smith, chief executive of Air France-KLM, said Chinese airlines had an “unfair advantage” over European carriers that have been banned from Russian airspace since the full-scale invasion of Ukraine almost a year ago.
Russia’s invasion of Ukraine redrew some of the world’s main flight paths, cutting European airlines off from Russian airspace when flying the “great circle route” over northern Russia. But Chinese carriers can still fly over Russia and take shorter routes to Europe. “Between Paris and Seoul, it can add up to three hours in flight time,” Smith told the Financial Times. “If you’ve got a Chinese carrier that is flying over Russia, they’ve got an unfair advantage over us.” Finnair chief executive Topi Manner this week also warned that European airlines were at a “significant” disadvantage. “We think that what this will mean is that it will be very hard to make secondary cities of China profitable in terms of flying,” he said.
Finland’s flag carrier built its business by using its location in the north of Europe to offer quick flight paths to Asia through northern Russia, and was badly hit by the sudden closure of the country’s airspace last year. “It adds hours to the journey and thus fuel, costs and emissions,” said Andrew Charlton, an aviation consultant. Finnair flights between Helsinki and Tokyo now take over 13 hours, up from 9 hours 30 before the airspace closures.
Charlton said the rerouted flights would also add to congestion in the skies over Europe, leading to likely air traffic control delays. The warnings came as a wider rebound in air travel is already bringing traffic close to pre-pandemic levels in regions such as Europe, fuelling a recovery for the industry. In particular, airlines are hoping to capitalise on an expected return of Chinese tourists to popular shopping destinations such as Paris. Smith said the Franco-Dutch group was gradually increasing its flights to Shanghai and Beijing and planned to return to at least 50 per cent of its 2019 flight capacity in China.
Air France-KLM last year returned to profit for the first time since 2019 with revenues rising sharply, it said on Friday. The group expects its global capacity to increase further in 2023. It has been one of the big beneficiaries of the renewed appetite for air travel within Europe and to the US since last year. It is trying to move past the last of its pandemic woes by whittling down the €10bn in state bailouts it received to cope with grounded flights. That will allow the group to move freely to make acquisitions again, as some of the aid came with EU restrictions on making purchases and paying dividends. By the end of April, Air France-KLM said it will have repaid its €2.5bn in remaining French state-guaranteed loans and refinanced some state-linked hybrid bonds, ridding itself of the strings attached to parts of the aid package.
Separately, Smith hit out at a Dutch government plan to cut the maximum number of flights permitted at Amsterdam’s Schiphol airport from the end of this year, in an effort to reduce excess noise for local residents. Air France-KLM was “fighting it very hard”, he said, adding that the group aimed to roll out newer aircraft that would help reduce noise pollution. Smith’s warning came as the boss of the parent of Amsterdam’s Schiphol airport, the hub of KLM, issued a public apology for the company’s performance over the past year as passengers suffered disruption. “Never before in Schiphol’s history have we disappointed so many travellers and airlines as in 2022,” Royal Schiphol Group chief executive Ruud Sondag said on Friday.
Airlines say Chinese have ‘unfair advantage’ flying over Russia
Ukraine war restrictions force carriers to take longer route, says Air France-KLM chief
www.ft.com