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Closure of Russian airspace ‘single biggest factor’ stopping foreign airlines from boosting service to China, global industry body says
- US and European airlines will not increase flights while being forced to make detours around Russia, says Willie Walsh, head of International Air Transport Association
- Finnair CEO Topi Manner notes
Chinese carriers that can use Russian airspace enjoy significant cost advantage, adding it’s ‘not a level playing field’
Chinese carriers that can use Russian airspace enjoy significant cost advantage, adding it’s ‘not a level playing field’
Laura Westbrook
Published: 1:06am, 7 Jun, 2023
Passengers at the Beijing Daxing International Airport in April. The number of flights between China and the United States remains at just 6 per cent of 2019 levels amid tensions between the two sides. Photo: AFP
The head of a global airline industry group has said Russia’s closure of its airspace will be the “single biggest factor” in the restoration of international flights to and from China, as European and American carriers warned of an uneven playing field.
While mainland China’s domestic flight traffic was now greater than before the pandemic struck, international flights were still in a “recovery phase”, International Air Transport Association (IATA) chief Willie Walsh told reporters at the close of its annual meeting in Istanbul on Tuesday.
The closure of Russian airspace following its invasion of Ukraine would continue to dissuade American and European carriers from ramping up service to China, he predicted.
“The single biggest factor that will play into China will be the closure of Russian airspace, because many airlines that would serve China cannot fly through Russian airspace,” Walsh said.
The IATA hopes to see Russian airspace reopen to all airlines, says association chief Willie Walsh. Photo: Reuters
“Therefore, you will see a great reluctance to add capacity from American and European carriers, because of the extended distances that they’re going have to fly to serve China.”
The number of flights between China and the United States remains at just 6 per cent of 2019 levels amid tensions between the two sides.
After flight bans were imposed on Russia in response to its invasion of Ukraine in 2022, Moscow retaliated by closing its airspace to countries it considered hostile.
Airlines operating out of the United States and Europe complain carriers from China and India are receiving an unfair advantage by being allowed access to Russian airspace, which cuts down on flight time and fuel costs. Delta, United and American Airlines say their ban from Russian air space costs them US$2 billion a year.
Hong Kong flag carrier Cathay Pacific Airways uses the airspace to fly from New York to the city, saying the route allows it to maximise passengers, cut flight times and save on fuel costs.
Walsh said the IATA hoped to see Russian airspace reopen to all airlines.
“I think we will only see Russian air space reopen for everybody when peace is in that region and when the war in Ukraine finishes,” he added.
Finnair CEO Topi Manner said flights between Finland and mainland China were now 35 per cent longer as it could not use Russian airspace
“It’s clear that is not a level playing field for players,” he said on the sidelines of the meeting. “There’s a significant cost advantage for the Chinese carriers.”
United CEO Scott Kirby earlier told reporters that re-routing its flights to avoid Russia had created a “big impact” on business.
“Pre-pandemic, we were doing five flights a day between the US and India, for example, and now we fly one and it’s an extra two hours. That’s disappointing,” he said.
The carrier now only operated four flights a week to China, and Kirby said he did not know when the frequency would increase given the uncertainties.
Kirby said no flights heading to the US should be allowed to fly over Russia, pointing to security risks to American citizens if a plane was forced to make an emergency landing.
“What’s going to happen if an airline lands in Russia with some prominent US citizens on board?” he said. “That is a potential crisis in the making and I think we should solve it before the crisis happens.”
All Nippon Airways, Japan’s largest carrier, told the Post on Monday its flights to Europe were also being affected,
resulting in an 15 to 20 per cent increase in flight times and costs. But the carrier was seeing greater demand from passengers flying between Asia and North America.
“We do understand that they’re due to the political situation that involves China and the United States, there are a limited number of flights and due to this, we are seeing new demand that travel through Japan between the continents.”
“In that sense, it has a positive impact on our demand right now.”
The IATA has predicted global profits from the 300 airlines it represents would reach US$9.8 billion this year, double its forecast in December, on the back of stronger demand for travel. Airlines collectively lost US$3.6 billion last year, the association previously estimated.
