Air Carriers - "Extra Edge" While Flying Over Russian Territory

Chief of Air France-KLM says some airlines are forced to take longer routes because of Ukraine conflict constraints.

As the flight industry picks up again following the Covid-19 lockdowns, European airline companies have warned that they may struggle to keep up with Chinese competitors due to having to take longer routes to Asia in order to avoid operating over Russia.

During the military invasion of Ukraine about a year ago, European carriers were prohibited from Russian airspace. As a result of the conflict, the "great circle route" across northern Russia is now inaccessible to European aircraft, giving Chinese airlines a "competitive advantage," as stated by Ben Smith, CEO of Air France-KLM. This may translate into increased travel time by as much as three hours from Paris to Seoul, leading to an unfair edge for some of the carriers.

Topi Manner, CEO of Finnair, also echoed these concerns this week when he said that European carriers were at a "major" disadvantage. According to him, this also means that smaller Chinese airports would have a hard time becoming financially viable. For example, with the latest airspace restrictions, a trip on Finnair from Helsinki to Tokyo now takes almost 13 hours, up from 9 hours and 30 minutes before.

Moreover, air traffic control delays would occur as a result of the diverted planes, which would add to the already heavy traffic in European skies.

The concerns emerged as air travel was beginning to recover, with traffic in certain countries, including Europe, approaching pre-pandemic levels. Airline companies, in particular, are anticipating a boom in business as a result of the return of Chinese visitors to major shopping locations like Paris.

According to a statement released on Friday, Air France-KLM reported a profit for the first time since 2019 as a result of a significant increase in revenue. The company anticipates further growth in global capacity in 2023. With the increased demand for flights inside Europe and to the United States, the airline is also seeking to put the crisis that suspended flights behind it by paying back the €10 billion in public bailouts. As part of the funding was accompanied by EU limitations on making purchases and making profits, this will enable the company to move freely once again to close transactions.

At the same time, Air France-KLM is planning to introduce newer planes that would have less of an impact on the environment.

 

Source: ft.com