The CEOs of Lufthansa and Air France-KLM, Carsten Spohr and Benjamin Smith, have voiced concerns over what they see as the European Commission’s overly liberal approach to opening the EU aviation market to non-European carriers, particularly those from the Middle East. They argue this has created an uneven playing field, disadvantaging European airlines.
Over Half of European Air Traffic Operated by Foreign Airlines
In a joint interview with Les Echos and Frankfurter Allgemeine Zeitung, Smith stated, “The rules for long-haul air transport in Europe are not fair to European airlines. While the EU operates as an open market, many of our competitors face fewer regulatory constraints, lower taxes, and enjoy advantages we do not.” He highlighted that over 50% of air traffic to and from Europe is now controlled by foreign carriers, threatening the future of European airlines and the 12 million jobs tied to the sector.
Beyond Economics: A Question of Sovereignty
Spohr emphasized that the issue extends beyond economics, touching on Europe’s geopolitical stability and sovereignty. “Europe already struggles to defend itself and meet its energy needs. At the very least, we should aim to maintain global connectivity through our own means, rather than relying on other countries.”
Non-European Airlines Outpace European Growth
Smith pointed out that while Europe’s major airlines—Air France-KLM, Lufthansa, and British Airways—have seen little growth in long-haul capacity over the past two decades, competitors like Turkish Airlines, Qatar Airways, and Emirates have expanded significantly. These carriers have benefited from nearly unrestricted access to the European market without reciprocating by opening their domestic markets. This has bolstered employment and connectivity in their home countries at the expense of European hubs.
Smith also criticized the EU’s air traffic agreements, particularly the “Open Skies” deal with Qatar, which he described as tainted by corruption and detrimental to European airlines. Spohr added that such agreements increase CO2 emissions, as flights routed through Gulf hubs are longer than direct European routes, undermining Europe’s environmental and social standards.
Sustainable Aviation Fuel and Russian Airspace: Key Challenges
Both CEOs identified regulatory inconsistencies around sustainable aviation fuel (SAF) as a major issue. European airlines are required to use SAF on all long-haul flights departing from EU hubs, while non-European competitors face no such mandates for flights outside the EU. This creates a cost disparity.
The closure of Russian airspace to European carriers since February 2022 has further exacerbated the imbalance. European airlines must take longer routes to Asia, increasing flight times by up to 2.5 hours and adding an average of €45 per passenger in costs. Meanwhile, airlines from countries not sanctioning Russia enjoy shorter, more efficient routes.
Calls for Fair Competition, Not Protectionism
When asked if European airlines need protectionist policies, Spohr rejected the idea, instead calling for a level playing field. “We don’t need help or protectionism. We simply ask not to be disadvantaged. For instance, we comply with SAF mandates on all long-haul flights from European hubs, while competitors departing from Istanbul or Doha do not. Additionally, granting Qatar Airways unrestricted access to European markets is unprecedented and worsens our competitive position.”
Both leaders urged the European Commission to address these disparities to ensure the future viability of Europe’s aviation industry.