- Elevated expenses - the aviation sector anticipates reduced airway availability
The hike in airport departure tax, implemented in May, is predicted to result in flight cancellations at German airports, according to the aviation sector. As per Joachim Lang, CEO of the German Aviation Association (BDL), this tax hike will result in a loss of 4 million seats in the upcoming winter flight schedule. Besides the tax increase, Lang also pointed out the doubled security check fees and air traffic control charges in Germany as contributing factors. These expenses are significantly lower in other nations. This financial burden is pushing airlines to assess whether continuing operations in Germany remains economically feasible.
Irish budget carrier Ryanair had previously urged the German government to revisit the increased airport departure tax, threatening to reduce its operations from German airports by an additional 10% or 1.5 million seats during the forthcoming summer season. Instead, they would shift their operations to countries with a more favorable cost structure. Alongside the withdrawal of the tax hike, Ryanair also requested reduced air traffic control fees and a suspension of the planned increase in passenger security fees at airports. Lang expressed his support for Ryanair's approach, labeling their demands as reasonable rather than aggressive.
Lang took over as the head of BDL in early July. He urged the national government to utilize the revenue generated from the airport departure tax tax increase to promote the development of alternative aviation fuels, as was agreed in the coalition agreement. An investment of two billion euros, according to Lang, would be adequate to transition the entire sector to a greener footprint. "The federal government only needs to invest two billion euros, which it will eventually recoup," said Lang.
This tax hike affects all passenger flights departing from German airports due to the financial crisis faced by the federal government. This increased ticket tax is known as the flight ticket tax.
The increased flight ticket tax, resulting from the airport departure tax hike, has prompted Irish budget carrier Ryanair to consider reducing its operations in Germany. Moreover, the BDL CEO, Joachim Lang, suggests that the revenue generated from this tax increase could be used to promote the development of alternative aviation fuels.
