- Soaring expenses - the aviation sector facing potential termination
The anticipated hike in air traffic taxes slated for May is predicted to cause cancellations of flights at German airports, according to aviation sector insiders. "The exorbitant airport fees will cost us around 4 million vacant seats during the upcoming winter flight timetable," stated Joachim Lang, CEO of the German Aviation Industry Federation (BDL), in an interview with "Welt" daily news. Apart from the tax surge, Lang cited the skyrocketing security check and air traffic management fees in Germany, which have nearly doubled, as financial challenges. These are considerably lower in other nations. "This circumstance forces airlines to examine if it's still financially sensible to fly to Germany."
Subsequently, Irish budget airline Ryanair urged the federal administration to rescind the increased air traffic tax. If not, the airline would curtail its services from German airports by an additional 10% or 1.5 million seats during the upcoming summer season and shift its operations to more cost-friendly nations. Furthermore, Europe's leading airline championed reduced air traffic control charges and a remission of the planned enhancement in security passenger fees at airports. Lang endorsed Ryanair's stance. "It doesn't sound like extortion to me, but rather logical. One ought to appreciate his (Ryanair CEO Eddie Wilson) directness."
Since becoming BDL CEO in early July, Lang advocated for the federal government to allocate revenue from the increased air traffic tax to foster sustainable aviation fuels, as per the coalition agreement's terms. Two billion euros would be sufficient, "to decarbonize an entire sector," according to Lang. "The federal government would only need to pour in two billion, which it would also recoup from us." The traffic light administration increased the ticket tax due to the financial crisis. This directive affects all flights departing from German airports.
The Commission has expressed its support for Joachim Lang's proposal to allocate revenue from the increased air traffic tax towards promoting sustainable aviation fuels. The anticipated response from the federal government could significantly impact the aviation sector in Germany.
