Fuel Crisis Threatens Airlines Insolvencies Consumer Watchdogs Warn

Fuel Crisis Threatens Airlines Insolvencies Consumer Watchdogs Warn

The Federal Association of Consumer Centres is warning about potential airline insolvencies and consumer risks due to forecasted shortages of kerosene fuel. Ann-Cathrin Beermann, head of the Mobility and Resource Protection team at the VZBV, told the “Funke” newspapers that they fear that insufficient and expensive fuel could lead to increased airline bankruptcies. She particularly highlighted the lack of protection for individual travelers. According to Beermann, such travelers risk losing the money paid for tickets and, if already at their destination, they would have to independently organize a way home. She added that past experiences showed only minimal reimbursements from insolvency funds, resulting in potential losses of several hundred euros for consumers.

Consequently, the VZBV is calling for an insolvency guarantee for consumers within the Air Passenger Rights Regulation, suggesting a fund that would protect even individual travelers. Furthermore, the consumer advocate suggested that politicians should strengthen passenger rights for cross-border train journeys, arguing this would make European rail alternatives to short flights more appealing. Beermann noted that consumers are relatively well protected if flights are cancelled due to kerosene shortages, as tickets are either rebooked or refunded, which she characterized as inconvenient but manageable.

Tackling the looming kerosene shortage in Europe, the Green Party is demanding a temporary restriction on private and domestic flights, along with a reduction in the price of the Germany Ticket for local transport. Michael Kellner, the Greens’ parliamentary group spokesperson on energy policy, informed the “Funke” newspapers that the situation is serious, suggesting that private aircraft should remain grounded in the interim. He argued that rescue, cargo, and international flights should be prioritized, and that short domestic and European flights should also be temporarily suspended. Kellner also called for a discount on the Germany Ticket.

His response followed a stark warning from the International Energy Agency (IEA) the previous day, where chief Fatih Birol suggested that Europe’s kerosene reserves might only last for six weeks. The IEA warned that if the Strait of Hormuz remained effectively closed due to Iran’s situation, leading to further supply interruptions, flight cancellations would become inevitable. Airport operators are also warning about fuel shortages, prompting the Brussels EU Commission to reportedly develop an emergency plan.

Meanwhile, Green politician Kellner stated that the medium-term solution requires synthetic fuels. He recalled that the federal government has been indecisive for a year regarding a green kerosene plant in Lausitz, despite project feasibility and available funding. Kellner proposed that the government should mandate the use of synthetic fuels for its own flights to help further develop the market for such alternatives.