American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Lufthansa weighs flight cuts as state-backed Chinese airlines disrupt European aviation

by admin September 21, 2024
September 21, 2024
Lufthansa weighs flight cuts as state-backed Chinese airlines disrupt European aviation

Lufthansa is considering canceling its daily Frankfurt-to-Beijing flights due to rising operational costs and increasing competition from Chinese airlines.

This route, a staple for the German carrier, is becoming financially unsustainable.

While Lufthansa also operates a daily Munich-to-Beijing flight, that route remains unaffected for now, but a decision on the Frankfurt route could be made as early as next month.

Competitive landscape

Chinese airlines are rapidly expanding their presence on international routes, including a significant increase in flights to Europe, which is putting intense pressure on local carriers.

With lower operational costs, fewer regulatory hurdles, and strong government support, Chinese airlines are gaining a competitive edge over their European counterparts.

European airlines, in contrast, face a host of challenges—higher taxes, strict regulations, and aging infrastructure that complicates operations.

The global political landscape further exacerbates the problem.

The ongoing war in Ukraine has forced European airlines to take longer, costlier detours to avoid Russian airspace, making these routes less profitable.

Chinese airlines driving others out of business

The Chinese government’s backing of its airlines is no secret, and it’s giving these carriers a significant advantage over international competitors.

State support has enabled Chinese airlines to outcompete others, forcing some carriers to discontinue routes to China altogether.

Singapore Airlines recently halted flights to two Chinese cities, while Australia’s Qantas suspended its Sydney-to-Beijing route earlier this year.

In Europe, British Airways is set to end its Beijing service next month, and Virgin Atlantic has already discontinued its profitable UK-to-Shanghai flights, a route that was a major revenue driver for 25 years.

While each airline has its reasons for cutting routes to China, the common thread is clear: they can no longer compete with the state-supported Chinese airlines.

Can European airlines compete?

Since last summer, Chinese airlines have increased their flights to Europe by 74%, while European carriers are struggling to hold their ground.

The disparity in operational efficiency, exacerbated by geopolitical issues, is widening.

Chinese airlines are free to fly through Russian airspace, shaving hours off their routes to Europe and significantly lowering their costs—a luxury European airlines don’t have.

For now, it seems European airlines are retreating, conceding more and more routes to their Chinese counterparts.

Whether they can regroup and reclaim these routes in the future remains uncertain.

Given the current cost advantages and strategic positioning of Chinese airlines, it’s hard to envision a scenario where European carriers can mount a successful comeback.

Without significant intervention or innovation, Europe’s airlines risk losing these critical routes to China, which could solidify Chinese dominance in the aviation industry.

The post Lufthansa weighs flight cuts as state-backed Chinese airlines disrupt European aviation appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Qualcomm approached Intel for a takeover, WSJ reports
next post
Germany to retain Commerzbank shares as bank strives for independence

Related Posts

Why has the Tata Consumer Products share price...

November 15, 2024

JOBY vs Archer Aviation: Which is a better...

February 19, 2025

NVIDIA stock price forecast as fresh China headwinds...

August 12, 2025

Brazilian meat giant JBS clears path for US...

May 24, 2025

Asian markets: investors on edge amid Iran ceasefire...

June 20, 2025

Customers from the East Coast to the Midwest...

March 28, 2024

Ferrari stock forms a dangerous pattern ahead of...

November 4, 2024

China’s exports surge amid waning frontloading demand

July 14, 2025

Europe markets open: UK’s 0.7% Q1 GDP, Siemens...

May 15, 2025

Vanguard’s VIG ETF forms a rare death cross:...

April 23, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,753)
    • Investing (2,776)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved