It was recently announced that China Eastern Airlines had not received traffic rights from the Republic of Austria for the planned route between Shanghai and Vienna. Austrian Airlines is said to have intervened, according to some media reports.
Apparently, AUA does not want to face competition because the Chinese airline is allowed to use Russian airspace - unlike Austrian Airlines - and thus benefits from significantly shorter flight routes. This has a positive effect on operating costs. This is precisely what Austrian Airlines seems to have a problem with and wants to be protected by the Austrian federal government. The result: China Eastern Airlines has not been granted any traffic rights - at least for the time being.
When asked, AUA Chief Commercial Officer Michael Trestl said that business in China was currently not going according to expectations. Fewer business travelers and tourists were flying to the Middle Kingdom and significantly fewer Chinese tourists were coming to Europe. He admitted that the inability to use Russian airspace was having a negative impact on Austrian Airlines, as it had to fly longer routes and therefore had higher costs. "If there is competition, then it should be on equal terms," was the only comment when asked why Austrian Airlines intervened with the Ministry of Transport to such an extent that China Eastern Airlines was temporarily denied route rights.