RuAviation

Intensifying price competition has been observed in Finland on routes to China following an increase in flight frequency by Juneyao Air between Helsinki (HEL) and Shanghai (PVG). The Chinese carrier gains a significant advantage by operating through Russian airspace, utilizing the shortest possible route, as reported by the Finnish business publication Kauppalehti.

This situation stems from the geopolitical fallout of February 2022, when the European Union banned Russian carriers from its airspace and airports. Russia implemented a reciprocal ban on airlines from most EU nations, the UK, and the United States. As a result, European carriers like Finnair lost access to the direct Siberian transit routes. In contrast, Chinese airlines continue to use this airspace, granting them a substantial competitive edge.

Using the shorter Siberian corridor significantly reduces flight duration and operating costs. Finnair, however, is forced to reroute its Asia-bound flights via longer, southern paths. This additional distance increases flight time and fuel burn. The airline has noted that these higher costs are directly reflected in its fares on Chinese routes, leading a segment of passengers to opt for carriers with access to Russian airspace and, consequently, a lower cost base.

Juneyao Air offers fares approximately €200 (approx. $215) lower than Finnair’s average fares on the same route. This price difference is driven by Juneyao’s shorter flight times and lower fuel consumption. The Finnish market has also seen a rise in demand for Juneyao’s flights for connecting travel to Southeast Asia, particularly for winter season routes to Thailand and other destinations in the region.

Finnish aviation authorities state they have no means to influence the situation. In practice, this means the competitive landscape on long-haul routes from Europe to Asia is now shaped not only by commercial strategies but also by the configuration of available air corridors. According to Finnish industry experts, this imbalance is expected to persist as long as restrictions on Russian airspace remain. The market dynamics, particularly the distribution of passenger flows between European and Asian carriers, will remain directly tied to the geography of permitted routes.