KLM CEO Criticizes Chinese Airlines, Urges EU Action for Fair Competition

KLM Royal Dutch Airlines CEO Marjan Rintel has criticized the “unfair” competition posed by Chinese airlines and called for action from the European Commission to support European carriers. Rintel highlighted that Chinese airlines are benefiting from using Russian airspace, which is closed to European airlines due to the Ukraine conflict. This allows them to reduce flight times and fuel costs, resulting in cheaper fares.

In a Dutch television interview on WNL Op Zondag, Rintel explained that Chinese airlines can save two to four hours on flights to Europe, leading to lower operational costs and pricing advantages over European competitors. She urged the EU to address this disparity by considering financial measures to level the playing field.

Rintel’s comments come as KLM announced austerity measures aimed at improving its financial performance by EUR450 million (USD497 million) in the short term, with a goal of achieving an 8% profit margin by 2026-2028. Rising operational costs, including equipment, staff, and airport fees, have prompted these measures.

KLM plans to boost labor productivity, address pilot shortages, and possibly outsource maintenance. Rintel emphasized that the austerity measures will not turn KLM into a low-cost airline but are designed to manage costs while maintaining service quality.

Passengers on European flights will now pay for food and drinks, a change driven by customer demand for more choice. Rintel assured that KLM remains committed to quality service while navigating these financial challenges.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com