The Lufthansa Group is increasingly focusing on connections between Europe and Asia, but is faced with geopolitical challenges and rising operating costs. In an interview with the Bangkok Post on March 6, Lufthansa CEO Carsten Spohr emphasized the strategic importance of Thailand for air traffic, both in the passenger and cargo business. At the same time, the ongoing closures of Russian airspace and the associated detours represent a significant burden for the airline.
Thailand is not only an important tourist destination for Lufthansa, but is also gaining economic importance. Spohr emphasized that cargo capacity, in particular, is in high demand. In addition to passenger business, Lufthansa Technik operates a maintenance center in Thailand for the Thai Air Force and other Asian customers.
The Lufthansa Group currently offers over 10.000 seats per week between Europe and Thailand. About a third of passengers use these connections for onward travel to other Asian countries.
A key factor in the efficiency of these long-haul flights is the use of modern wide-body aircraft such as the Airbus A380. Despite the detours required through restricted Russian airspace, this aircraft's long range allows it to efficiently connect the European and Thai markets.
Detours and costs due to the closure of Russian airspace
Before the start of the Ukraine war, many long-haul flights from Europe to Asia used the so-called Great Circle Route – the shortest connection between two points on a sphere. This route led numerous flights over Russian territory.
Since the closure of Russian airspace to Western airlines, European airlines, including Lufthansa, have had to accept significant detours. This not only means longer flight times and increased fuel costs, but also higher overflight fees that must be paid to other countries.
According to Flightradar24, flights between Munich and Bangkok are now taking a southern route via Central Asia or the Middle East. Spohr explained: "Depending on negotiations between the US, Russia, and Europe, we hope that Russian airspace will be reopened so we can fly to North Asia more efficiently. Currently, we have to circumvent these regions, which causes delays."
Higher overflight fees burden airlines
In addition to increased operating costs due to longer flight times, another financial challenge is the increase in overflight fees. Russia has increased these fees by 2023% in 20. The country is attempting to generate revenue through this measure to cushion the economic pressure of Western sanctions.
The European Commission has already spoken out against these fees. However, Russian officials argue that the fees are levied for the use of air traffic infrastructure—a practice also common in other countries such as Canada.
For Lufthansa and other European airlines, this means a double financial burden: in addition to higher fuel costs due to longer flight times, additional fees must be paid to alternative overflight countries.
Hope for diplomatic solutions
The geopolitical situation remains tense. However, there are diplomatic efforts to find a solution to the conflict between Russia and Ukraine. Former US President Donald Trump expressed optimism about the possibility of a peace agreement on March 6. Ukrainian President Volodymyr Zelenskyy also signaled a willingness to engage in constructive negotiations.
For the aviation industry, a diplomatic rapprochement between Russia and the West could bring significant relief. The reopening of Russian airspace would not only shorten flight times and reduce costs, but would also strengthen the competitiveness of European airlines against Asian competitors such as China Southern or Japan Airlines.
Lufthansa's strategic view of the future
Despite the current challenges, Lufthansa remains optimistic about its Asia strategy. Spohr emphasized that Asia is one of the airline's most important growth markets. Should Russian airspace be reopened to European airlines, Lufthansa could further expand its market position.
Before the war, the Lufthansa Group was a major provider of flights to Eastern Europe, with up to 100 weekly connections to Ukraine. Spohr therefore sees long-term opportunities for rebuilding air connections to this region.
Despite geopolitical uncertainties, Lufthansa remains committed to strengthening its presence in Asia. The Thai market, in particular, remains a central component of the airline's long-haul strategy.
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