German airline Lufthansa is considering whether to continue operating daily flights between Frankfurt and Beijing due to high cost, weak demand, and unequal competition from other countries, especially China. A final decision on whether to cut the connection from Frankfurt will be made in October. The airline “is continuously evaluating and optimizing its entire route network,” said a Lufthansa spokesperson.
As the Russian-Ukrainian war continues since 2022, Russia has closed its airspace to most European airlines as retaliation for the West’s sanctions after it invaded Ukraine. Lufthansa flights have to detour to the south to avoid Russian airspace, adding to the flight time which increases costs.
Meanwhile, Chinese airlines, those from the Middle East, and others have shorter flight times and lower costs, benefiting from being allowed to use Russian airspace during the past two years. They also gain advantages because of other lower business costs and high government subsidies, according to the Lufthansa spokesperson.
The spokesperson said that by contrast, European airlines have operated at much higher costs incurred by rising taxes and fees, high government regulatory requirements, and inadequate infrastructure.
In August this year British Airways announced that it would cut routes to Beijing at the end of October.
Sun Kuo-hsiang professor of international affairs and business at Nanhua University in Taiwan told The Epoch Times on Sept. 21 that in recent years weak demand for China-Europe routes coupled with rising operating costs has made these routes “no longer attractive for European airlines.”
Chinese American economist Davy J. Wong told The Epoch Times on Sept. 21 that after CCP’s draconian COVID-19 lockdowns “demand for tourism and business visits dropped rapidly.” Wong pointed out there are also political factors involved in Lufthansa’s decision.
Wong said he predicts more Western airlines canceling flights due mainly because of unequal competition: China subsidizes Chinese airlines regardless of losses or profits.