KLM’s CEO urged the bloc to address the “unfair” competition caused by its own sanctions against Moscow
KLM Royal Dutch Airlines airplane at Amsterdam Airport Schiphol, Amsterdam, Netherlands, May 03, 2022 © Getty Images / Creative Touch Imaging Ltd./NurPhoto
The EU should establish financial measures to curb competition from Chinese airlines that can freely cross Russian airspace, according to Royal Dutch Airlines (KLM) CEO Marjan Rintel.
Western countries closed their airspace to Russian airlines as part of sanctions imposed after the outbreak of the Ukraine conflict in 2022. In response, Moscow banned aircraft from ‘unfriendly nations’, forcing EU planes to reroute, resulting in higher fuel consumption and increased 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 said in an interview with Dutch broadcaster WNL on Sunday.
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Rintel suggested that Brussels should intervene to address this competitive imbalance. “Europe can at least explore how we can level the playing field by adjusting pricing or examining other alternatives,” she stated.
In response to rising costs, KLM plans austerity measures aimed at saving €450 million ($494 million) annually, including €100 million by “adjusting” in-flight catering, Rintel said.
“In the Netherlands, we are facing a tight labor market and rising wage costs, which differs from the situation in France,” she added, 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 explained.
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Last month, Germany announced it was considering halting its daily Frankfurt-Beijing flights due to similar pressures from rising costs and competition from Chinese and Gulf airlines that can fly over Russia. The previous month, British Airways announced it would suspend London-Beijing flights starting in October. Additionally, Virgin Atlantic recently terminated its only China route to Shanghai.
