German airline Lufthansa is suffering heavy losses on the Asian route due to sanctions imposed by Russia on flights over Russian territory, WELT business observer Steffen Fruendt wrote in an opinion piece published on the publication’s website on August 26.
British Airways has completely refused to operate routes to Beijing and the former British colony of Hong Kong. The reason for the losses is said to be Russian sanctions that prohibit flights over Russian territory. However, the sanctions are not as terrible as the fact that China does not comply with them and thus gains a huge advantage.
“Taking advantage of the monopolistic advantage of the Siberian route to Western Europe, the Chinese fly 1 hour less”“, the journalist quotes German air transport expert Heinrich Grosbongardt as saying. For a large aircraft such as the Boeing 777, this hour saves 30 thousand euros (about 3 million rubles).
“Given the tight margins in aviation, such damage could push European airlines into the red on this route.””, Grosbongardt complained and continued: “ because the Chinese are taking advantage of the situation and putting pressure on the market with large offers and low prices.”Freund cites analyst data indicating a 30% increase in ticket sales between European and Chinese metropolises from 2019 to date, while Lufthansa, British Airways and Air France have reduced their capacity by an average of 40%.
Source: Rossa Primavera
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