Dutch Airline KLM Asks EU to Deal With China’s ‘Unfair’ Competition

Chinese airlines have shorter flight times, lower costs, and have benefited from being allowed to use Russian airspace during the past two years.
Dutch Airline KLM Asks EU to Deal With China’s ‘Unfair’ Competition
KLM airplanes parked in Amsterdam on April 2, 2020. Piroschka van de Wouw/Reuters
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KLM Royal Dutch Airlines called on the European Union to take measures to counter “unfair” competition from Chinese airlines.

“Europe can at least look at how we can prevent that unfair playing field by pricing it or looking at it in a different way,” KLM CEO Marjan Rintel told Dutch TV WNL on Oct. 7.

In 2022, Russia closed its airspace to most European airlines in retaliation for the West’s sanctions over its war with Ukraine. European airlines’ flights have to detour to the south to avoid Russian airspace, increasing both flight times and costs.

Rintel said that avoiding Russian airspace adds between two to four hours of flying time, driving up KLM’s prices.

Meanwhile, Chinese, Middle Eastern, and other airlines that have been allowed to use the airspace have shorter flight times and lower costs. They also gain advantages because of high government subsidies.

German airline Lufthansa announced last month that it’s considering whether to continue operating daily flights between Frankfurt and Beijing because of high cost, weak demand, and unequal competition from other countries, especially China.

A Lufthansa spokesperson called for EU politicians to make a new industrial policy to address unequal competition from other countries, as European airlines are dealing with rising taxes and fees, high regulatory requirements, and inadequate infrastructure, putting them at a disadvantage in international competition.

British Airways said in August that it would suspend flights between London and Beijing from Oct. 26 until November 2025.

Regarding the effect of any possible measures that the EU may take to counter the Chinese regime’s competition, Su Tzu-yun, researcher and director of the Division of Defense Strategy and Resources at Taiwan’s Institute for National Defense and Security Research, told The Epoch Times on Oct. 8 that it would be effective as long as the EU countries can act together.

“The Chinese regime is highly dependent on foreign trade for its economy. Foreign trade is about 17 percent to 18 percent of its GDP,“ he said. ”The United States is its largest foreign trade market, while the European Union is the second largest.”

Su noted that the EU recently has increased tariffs on electric vehicles from China by nearly 34 percent, “so now that the aviation industry has sent out this distress call, I think the EU will take measures to handle it.”

As to what measures the EU could take, he said that if the EU can unite to fight against Beijing’s competition in the aviation industry by “closing its airspace or reducing flights, then the Chinese regime will be forced to abide by relevant international trade rules.”

“Only in this way can this kind of unfair competition in Beijing be restrained,” Su said.

He said that Western airlines have been reducing flights to China.

“The number of foreign businessmen in mainland China has decreased significantly in recent years, and the number of tourists traveling to China has also decreased. After all, there are safety issues, so they have been reducing the number of flights to Beijing.”

Taiwanese retired Maj. Gen. Yu Tsung-chi, an adviser to the Formosa Republican Association, shares a similar view.

“I think it is inevitable that more European countries will join in the future to reduce flights to China. China and Russia are now the main threats to the EU or NATO countries, so there should be more and more sanctions on China including various economic means,” Yu said.

Geopolitical Factors

Yu noted that various European countries’ canceling flights to China “is of course related to China against European countries and supporting Russia in the Russian–Ukrainian war.”

The EU has criticized China for siding with Russia and secretly supporting Russia’s war efforts and warned that it must pay a price. Consequently, some airlines have gradually begun to reduce flights to China, according to Yu.

He said European countries should adopt more specific sanctions against China.

An F-16 fighter jet arrives at Volkel Air Base after a farewell tour in Volkel, Netherlands, as the Royal Netherlands Air Force retires its F-16 jets, on Sept. 27, 2024. (Koen van Weel/ANP/AFP via Getty Images)
An F-16 fighter jet arrives at Volkel Air Base after a farewell tour in Volkel, Netherlands, as the Royal Netherlands Air Force retires its F-16 jets, on Sept. 27, 2024. Koen van Weel/ANP/AFP via Getty Images

New NATO Secretary General Mark Rutte warned the Chinese regime regarding supporting Russia’s war efforts on Oct. 1, saying, “China cannot continue to fuel the largest conflict in Europe since the Second World War without this impacting its interests and reputation.”

“The severe condemnation of China from a NATO secretary general has never happened before,” Yu noted.

The Netherlands, where Rutte was prime minister for 14 years, delivered 24 F-16 fighter jets to Ukraine on Oct. 6.

Adding that to the equation, Yu said: “I think the relationship with the Netherlands will definitely worsen. This also means that European countries’ dissatisfaction and critical attitude toward China are rising sharply.”

Luo Ya and Reuters contributed to this report.