The aviation industry in Europe is facing a number of challenges, exacerbated by geopolitical tensions and economic uncertainties. Marjan Rintel, CEO of KLM Royal Dutch Airlines, has now brought the problems of unfair competition from Chinese airlines into the spotlight.
In an interview with the Dutch television programme WNL Op Zondag, she criticised the unequal playing field that makes life difficult for European airlines. Her call for the European Commission to take financial measures to eliminate these inequalities raises important questions about the future of European aviation.
Unfair competitive advantages through Russian airspace
One of the main reasons cited by Rintel is the use of Russian airspace by Chinese airlines. While European airlines are forced to fly alternative and longer routes, Chinese airlines can use the direct route through Russian airspace. This not only leads to time savings of two to four hours, but also to lower fuel costs, which provides a significant price advantage in the current competitive situation. "This is reflected in the price, and of course the costs are higher for us," says Rintel. These differences have a negative impact on the competitiveness of European airlines and force them to charge higher ticket prices.
The issue is not new and has already provoked similar reactions from other European airlines, such as Lufthansa, which have also pointed to the need for EU intervention. Rintel says Europe should take action to eliminate these inequalities and create a fairer competitive environment. "Europe can at least see how we can prevent this unfair playing field by setting prices or doing things differently," she said.
KLM austerity measures and the pressure on the industry
Against this backdrop of competitive conditions, KLM recently announced cost-cutting measures aimed at improving operating profit by EUR 450 million in the short term and achieving a structural profit margin of over 8% by 2026-2028. This decision is a response to rising costs for equipment, personnel and airport fees, which are increasingly putting a strain on the company.
Rintel clarified that the planned measures are in contrast to the positive results achieved by sister company Air France. To remain competitive, KLM intends to increase labor productivity, address the pilot shortage and postpone non-essential investments. Outsourcing maintenance is also being considered, as there is a shortage of technical staff. These steps are part of a comprehensive plan that also includes a reorganization of on-board products and flight services.
Personnel issues and the balancing act between austerity measures and service quality
Despite the difficult situation, Rintel stressed that the current staff will not immediately face a higher workload. Various measures, such as reducing flight volumes to 2019 levels and hiring new staff, are intended to address the capacity problems. Rintel has already held talks with the unions to discuss the necessary steps to improve KLM's financial performance.
A key point that Rintel highlighted is the desire not to turn KLM into a "quasi-low-cost airline". While passengers on European flights now have to pay for food and drinks, this decision is based on customer demand for more choice, not on a deterioration in service quality. This shows that KLM is trying to find a balance between cost reduction and customer satisfaction.
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