Airline Industry: Implementing Higher Aviation Taxes Could Result in Flight Cancellations at German Airports
The upcoming surge in air traffic taxes in May, as per aviation industry experts, is expected to trigger flight cancellations at German airports. According to Joachim Lang, the head of the German Aviation Association (BDL), this tax hike will result in a loss of 4 million seats during the upcoming winter flight schedule. Besides the tax increase, Lang pointed out the surging charges for security checks and air traffic control, which have almost doubled in Germany. Other nations, however, have considerably lower fees for these services. Consequently, airlines are reconsidering their decision to fly to Germany due to these high costs.
In response, Irish low-cost carrier Ryanair urged the German government to scrap the increased air traffic tax. If not, the airline threatened to reduce its operations from German airports by an additional 10% or 1.5 million seats during the summer season and transfer to countries with more favorable financial conditions. Ryanair also requested reduced fees for air traffic control and a waiver of the planned increase in passenger aircraft security check fees at airports. Lang endorsed Ryanair's initiative, stating, "I don't see it as blackmail but rather straightforward."
Lang took up his role as BDL's CEO in early July. He proposed that the German federal government use the revenue generated from the increased air traffic tax to support the development of alternative aviation fuels, as agreed upon in the coalition agreement. A sum of 2 billion euros, he argued, would be sufficient to decarbonize the entire sector. "The federal government would only have to invest 2 billion euros, which it would also receive from us," said Lang. The traffic light coalition had raised the passenger ticket tax due to the budget crisis, affecting all flights originating from German airports.
The Commission has not yet responded to Ryanair's request to scrap the increased air traffic tax.Despite Lang's proposal, the Commission has not indicated whether they will allocate funds for decarbonizing the aviation sector with the revenue from the increased tax.
