KLM Asks EU To Take Measures To Protect Airlines From “Unfair” Chinese Competition

KLM Asks EU To Take Measures To Protect Airlines From "Unfair" Chinese Competition

Photo: Air France-KLM

When Air France-KLM was looking to buy 50 widebody aircraft from either Airbus or Boeing, with the Franco-Dutch airline group exploring the A350-900, A350-1000, 787-10, and 777-9, one of the main considerations during the process was the aircraft’s ability to fly to Asian destinations while avoiding Russian airspace, as The Air Current reported in September 2023.

On September 25, 2023, Air France-KLM chose the A350 family, ordering 50 A350-900 and A350-1000s, with options for 40 more, to replace its aging widebodies. Airbus should deliver the aircraft between 2026 and 2030.

Geopolitical rifts

Ever since Russia and its proxies invaded Ukraine and its territories in Donbas and Crimea in 2014 and the subsequent full-scale invasion of the country in February 2022, the geopolitical rifts between the EU, the US, and the rest of the Western world, and Russia, China, and their associates, including Iran, have only widened.

For example, on October 4, the EU imposed import tariffs on Chinese electric vehicles, with the tariffs ranging from 17.4% to 37.6%, which went into effect following an “anti-subsidy investigation with regard to imports into the [EU] of new battery electric vehicles (‘BEVs’) designed for the transport of persons originating in [China] […].

“On the basis of readily available information, there was sufficient evidence demonstrating that imports of the BEVs originating in [China] benefit from countervailable subsidies provided by the Government of the People’s Republic of China (‘the GOC’). Those subsidies have allowed the subsidized imports to rapidly increase their market share in the [EU] to the detriment of the [EU] industry.”

In the US, the Department of Transportation (DOT) has taken a different approach to ensure that local airlines can compete against Chinese carriers on flights to China, with new routes being rerouted to avoid Russian airspace, even if Chinese airlines can still technically use Russia’s airspace.

Photo: Fasttailwind | Shutterstock

Cirium data showed that in October 2019, Air China operated a twice-daily itinerary from Beijing Capital International Airport (PEK) to New York John F. Kennedy International Airport (JFK) with a block time of 800 minutes (13.3 hours).

However, in October 2024, the same flight, with Air China now scheduling five weekly itineraries between Beijing and New York, now has a block time of 925 minutes (15.4 hours).

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Publish date : 2024-10-07 06:59:00

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