Taxpayers Pay the Price as Airlines Take Flight in Exile

Taxpayers Pay the Price as Airlines Take Flight in Exile

A German Air Transport Association Chief Demands Swift Implementation of Industry Reliefs in Upcoming Meeting with Transport Minister

The chief of the German Air Transport Association, Joachim Lang, has called for a swift implementation of the reliefs for the industry agreed upon in the coalition contract before a meeting with Transport Minister Patrick Schnieder on Wednesday. Lang emphasized that the contract includes a reduction of the air traffic tax, the abolition of the national blending quota and a decrease in taxes and fees.

The current state of the air transport industry in Germany remains “critically” challenging, Lang stated, citing the slow recovery of the market in Germany compared to the rest of Europe. According to Lang, the main reason for this is the significantly higher taxes and fees in Germany compared to the rest of Europe. He gave the example of a flight from Germany to a European destination, which costs an airline around 5,000 euros in taxes and fees, whereas the same flight from Spain would only cost 700 euros.

The high taxes and fees in Germany lead to a situation where aircraft are being relocated to other countries, Lang said. The association is demanding a halving of the taxes and fees, as Germany has “gone over the top” and this has resulted in severe consequences.

Looking ahead to the summer, Lang expects a moderate increase in ticket prices, likely in the single-digit percentage range, due to factors such as higher taxes and a European surcharge for climate-neutral fuel, which only European airlines are required to pay. The association also still faces challenges from flight route detours, particularly to Asia, due to airspace restrictions over Russia, Ukraine and parts of the Middle East, resulting in longer flight times and higher costs. “We see a jam in the skies and that’s like a bottleneck on the autobahn” Lang said, referring to the traffic congestion that occurs in the skies due to these restrictions.