The respective heads of mainland Europe’s two biggest airlines, Lufthansa and Air France-KLM, Carsten Spohr and Benjamin Smith, have taken a swipe at the European Commission for what they describe as the unbridled opening up of the EU aviation sector to non-European carriers, particularly those from the Middle East, which they argue has led to an uneven competitive landscape.

Foreign carriers account for more than 50% of traffic

In a joint, wide-ranging interview with Les Echos and Frankfurter Allgemeine Zeitung, Smith said: “We both agree on one thing: the rules of the game for long-haul air transport in Europe are not fair to European airlines. The European Union is an open market, but many of our competitors are not subject to the same regulatory constraints or taxes and enjoy advantages that we do not have. As a result, more than 50% of air traffic to and from Europe is now operated by foreign airlines. This jeopardizes the future of our airlines and the 12 million jobs generated by air transport in Europe.”

‘Question of sovereignty’

For Spohr, the competitive disadvantage goes beyond the economic issue.

“The geopolitical situation should make us understand two things. First, it is more important than ever to connect people, cultures and economies in order to maintain the greatest possible stability in this world. Second, for us Europeans, it is also a question of sovereignty. We are already unable to defend ourselves or meet our own energy needs. Let us at least strive to remain connected to global markets by our own means and not by those of other countries.”

Spectacular growth in long-haul capacity

Smith noted that over the past 20 years, long-haul capacity offered by Europe’s three major airlines – Air France-KLM and British Airways – has remained virtually unchanged in contrast to the spectacular growth of their main competitors – Turkish Airlines, Qatar Airways and Emirates.

“These three airlines have benefited from almost total access to the European market, without having to open a domestic market in return, which has enabled them to develop employment and international connections at home. This has been to the detriment of connectivity and employment in Europe. The more flights that pass-through Qatar, the UAE or Turkey, the more difficult it is for European airlines to add or even maintain non-stop flights from their own hubs, particularly to Asia.”

‘Suspicions of corruption’

Smith also pointed the finger at the way in which certain air traffic rights have been negotiated over the years. “With regard to the (EU) ‘Open Skies’ agreement with Qatar, suspicions of corruption are public knowledge. And the fact that this agreement has not been cancelled or at least suspended is, in our view, a real scandal! It is clear to us that there is no advantage in giving Qatar unlimited access to Europe.”

Spohr said that agreements of this kind contribute to additional CO2 emissions, as journeys via subsidized Gulf hubs are longer than non-stop flights from Europe.

“It eliminates jobs in European hubs to create them in countries that do not share our concept of social security and social standards. This goes against everything Europe stands for.”

SAF and Russian airspace

For both Smith and Spohr, among the principal factors distorting fair competition is the lack of harmonization in regulations governing the incorporation of sustainable aviation fuel (SAF) by airlines and the closure of Russian airspace to European carriers.

“We support the system of SAF mandates but once again we are calling for the rules to be the same for everyone. If you are connecting in Europe to travel from Nice to Tokyo via Paris, Amsterdam or Frankfurt, the obligation to use a percentage of SAF applies to the entire journey.

“However, if you take a connecting flight at a hub outside Europe, the second flight – outside the EU – will not be subject to this requirement. This again gives our non-European competitors an advantage,” explained Smith.

Overflying Russia is also contributing to the uneven playing field. Since the Putin regime’s invasion of Russia in February 2022, European airlines have been banned from Russian airspace (along with their North American counterparts and a number of others) which has extended flight times to Asia by two to two and-a-half hours. By contrast, their Chinese competitors, as well as carriers from other nations whose governments have not imposed sanctions (on Russia), enjoy shorter journey times, lower fuel consumption, and higher payloads.

“In total, the additional cost of sustainable fuel and flying around Russia represents, on average, €45 per passenger on a Nice-Tokyo flight via a European hub. What's more, customers don't necessarily want to spend an extra two hours travelling to Asia,” Smith observed.

In the US, President Trump has announced his intention to address the issue by prohibiting all flights over Russia from entering US airspace. Spohr hopes the initiative will be implemented and that the European Commission and Member States will enact a similar move.

‘No need of protectionism’

Asked whether the EU should provide more support to its airlines or adopt a protectionist policy, Spohr replied:

“Fewer headwinds would be a good start. We don't need help or protectionism. We simply ask that we not be disadvantaged, as is currently the case. For example, we are required to carry a percentage of SAF on all our long-haul flights departing from Paris, Amsterdam, Munich or Zurich, which is not the case for our competitors when their long-haul aircraft take off from Istanbul or Doha.

“There is also the issue of traffic rights. The European Union has granted Qatar Airways unrestricted access to all European markets. To my knowledge, this is unprecedented in global aviation and significantly worsens our situation,” her added