Finnair, BA, LOT: European airlines are pulling out of China. Is Russia’s airspace closure guilty?

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Finnair has dropped from 42 to 3 direct flights from Helsinki to China in the previous few years.

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European airlines have been cutting flights to China following the closure of Russian airspace.

Virgin Atlantic and SAS Scandinavian Airlines have pulled overseas altogether this yr. While a variety of other corporations – Finnair, British Airways, Lufthansa and LOT Polish Airlines – are “quietly quitting” Chinese destinations, in accordance with aviation news site Skift.

After Russia’s full-scale invasion of Ukraine in February 2022, the EU and UK swiftly imposed a blanket flight ban on Russian aircraft over their skies. Russia retaliated by closing its airspace, forcing European carriers to take longer routes to Asia. 

Since fuel accounts for around 25 per cent of an airline’s operating costs, journeys to China have turn out to be significantly more costly in consequence, making European corporations review their numbers. Longer flights may require more crew – further bumping up costs.

It’s not excellent news for Europeans as passport holders of 18 countries can now visit China visa-free. 

Why are European airlines cutting flights to China?

In contrast to the fanfare that accompanies a recent route opening, airlines have been keeping quiet in regards to the significant drop in flights to China, Skift says.

Its evaluation of Cirium Diio data reveals that Finnair has gone from operating 42 nonstop flights per week from Helskini to China in August 2019, to simply three by August 2024 – in addition to a every day service to Hong Kong.

Helsinki to Shanghai is now the one mainland route on offer from Finnair. The jump in flight times is a serious reason why: rising from around 8 hours half-hour pre-war to 11 hours and 24 minutes now. 

“Because of the closure of Russian airspace, flight times to our Asian destinations have increased by between 10 and 40 per cent, depending on the destination,” Christine Rovelli, Finnair’s Chief Revenue Officer, told Skift. 

“We’ve got successfully adapted to this case and refocused our network, with more emphasis on westbound flying while maintaining a robust presence in our key Asian markets.”

Despite its particular proximity to Russia, the Finnish flag carrier is removed from alone. 

British Airways announced in August that it will suspend its London Heathrow to Beijing service, after regular flights there since 1980. Shanghai and Hong Kong are still on the timetable, but flights to the latter are dropping from twice every day to once a day from the top of October. 

And Hong Kong flights might be operated by a Boeing 787-9 with 216 seats – an enormous downsize from the ‘super jumbo’ Airbus A380 with 469 seats that previously did the rounds.

German flag carrier Lufthansa has also said it’s “reviewing the continuation” of its every day service from Frankfurt to Beijing. LOT Polish Airlines announced cuts earlier this month – including the cancellation of its Warsaw to Beijing service this winter.

Chinese airlines are increasing flights to Europe

Chinese airlines, alternatively, are free to fly across Russia, so usually are not subject to the identical costly detours as their European counterparts. 

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European executives, including Air France-KLM’s general manager for Greater China Wouter Vermeulen, have often bemoaned the “lack of a level playing field” for that reason.

This winter, China-based carriers will run 82 per cent of all flights between China and Europe, John Grant, chief analyst on the aviation intelligence company OAG told CNBC. That’s up from 56 per cent before the pandemic.

Around 18 recent routes between China and Europe are coming online this season, Grant added, all from Chinese airlines. The expert’s verdict? “It’s madness – there is no such thing as a real demand.”

Why else are European airlines dropping China?

It doesn’t simply boil right down to the Russian airspace issue, nonetheless. 

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For one thing, some European carriers are adding capability to other parts of Asia where also they are having to take more circuitous journeys. Finnair, for instance, is increasing flights to Thailand.

Skift also points out that Australian national carrier Qantas cancelled its Sydney-Shanghai route through the summer, despite being unaffected by the Russian airspace ban. They revealed planes were often flying half-empty. 

That implies a tougher market situation is at play. Strained economic relations between China and the West might be influencing European airline decisions, one expert told the news site. 

More straightforwardly, demand is a serious issue in accordance with Grant. A slowdown in China’s economy appears to be limiting outbound travel, while international interest in visiting the Asian superpower has also taken a dip.

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Only 17.25 million foreigners landed in China this yr as of July, in accordance with official figures. A steep drop from 49.1 million visitors in pre-pandemic 2019.

But most European airlines aren’t wanting to quit China completely; they’re clinging on to their ‘dot’ on the route map, ready for a rebound.  

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