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Air France wants the French government to limit Chinese airlines’ access to the country, saying they enjoy an unfair advantage because they can fly over Russian airspace closed to many other carriers. The French arm of Air France-KLM is keen for President Emmanual Macron to introduce taxes or other measures that would create a similar cost base between Air France and Chinese airlines, according to people familiar with the situation. Opening up the door generously to Chinese airlines would give a boost to the country’s hotels and restaurants as China’s massive outbound tourism market recovers from strict Covid-19 travel curbs. But it also risks stumping the recovery of France’s flagship carrier, which used to operate 32 flights weekly to mainland China before the pandemic, said the people, asking not to be identified discussing private deliberations with the state. “We support the ramp up of capacity between France and China but there needs to be a level playing field,” an Air France spokesman said. “Right now there is a distortion of competition which needs to be taken into account.” The government is seeking a “progressive and balanced” return of connections to China, and members from several ministries plan to meet as soon as this week to discuss the topic, a government official said. The reopening of China after some of the harshest pandemic lockdown measures has created a conundrum for France. While Chinese visitors are a major economic factor for the retail and hospitality industries particularly in Paris, the state is also keen to protect its flagship airline, in which it owns which owns 29%. Other industries also are fighting to ward off mounting competition from China. Last year, the CEO of Stellantis NV blasted Europe’s politicians for welcoming Chinese manufactures with a “red carpet.” <br/>

Garuda Indonesia cut its red ink in Q1, on the back of significant increase in revenue as travel demand picked up. For the three months to 31 March, the SkyTeam carrier reported a pre-tax loss of $131m, narrowing the $257m loss in the year-ago period. Revenue for the quarter was up 72% to $603m, with passenger travel revenue doubling year on year. Quarterly expenses, meanwhile, rose 15% year on year to $605m, led by an increase in costs relating to flight operations as flying activity ramped up. Garuda posted a net loss of $110m, narrowing from the $225m loss reported a year ago. The carrier ended the quarter with $428m in cash and cash equivalents, lower than the $522m at the start of the year, but significantly higher than the year-ago period. Garuda’s restructuring continues apace, after gaining approvals in 2022. The carrier was hit by a series of lawsuits related to aircraft leases in recent months, but stresses that these do not affect its restructuring efforts.<br/>