Marjan Rintel, the CEO of KLM Royal Dutch Airlines, believes that the European Union (EU) needs to step up and create rules to help European airlines compete fairly with Chinese airlines. The issue is that while Western countries have closed their airspace to Russian airlines because of the conflict in Ukraine, Chinese airlines can still fly over Russia. This gives them a big advantage.
Why is This Important?
Since the Ukraine conflict began in 2022, Western nations have imposed sanctions on Russia, which included closing their airspace to Russian flights. In retaliation, Russia has banned airlines from “unfriendly countries,” including those in Europe and the U.S. This has forced European airlines to take longer routes, which means they spend more on fuel and other costs.
KLM’s CEO, Marjan Rintel, pointed out that while European airlines have to reroute, Chinese airlines can still take the shorter path over Russia. This difference in routes saves Chinese airlines two to four hours of flight time. As a result, their ticket prices can be lower than those of European carriers.
Rintel said in an interview with Dutch broadcaster WNL that the EU should consider how to level the playing field. “Europe can at least explore how we can level the playing field by adjusting pricing or examining other alternatives,” she suggested.
KLM’s Financial Struggles
Because of rising costs and tough competition, KLM is looking to save money. Rintel announced that the airline aims to cut costs by €450 million (about $494 million) each year. This will include changes to in-flight catering to save €100 million.
The airline is also facing challenges at home, such as a tight job market and increasing wages. Rintel mentioned that the situation is different in other countries, like France. With a shortage of pilots and technicians in the Netherlands, KLM may need to make changes to its flight schedules and even outsource some maintenance work.
Global Impact on Airlines
This isn’t just a problem for KLM. Recently, German airline officials hinted at stopping their daily flights from Frankfurt to Beijing due to the financial pressure caused by competition from Chinese and Gulf airlines that can still fly over Russian airspace. British Airways also announced they would stop flights from London to Beijing, and Virgin Atlantic recently ended its only route to Shanghai.
As competition heats up, the question remains: will the EU take action to help its airlines compete with their Chinese counterparts? The pressure is on as the aviation industry faces significant challenges.
