The German aviation industry remains under pressure. After the economic loss caused by the pandemic and the current challenges with the energy transition, another factor is now coming into focus: the high location costs at German airports. After the service union Verdi had already called on politicians to act, the Independent Flight Attendants Organization (Ufo) is now also calling for a reduction in location costs and measures for better social conditions.
The challenges for the German aviation market are profound and far-reaching. While airlines in other European countries have already largely recovered from the slump caused by the Corona crisis, the German aviation industry is struggling with higher operating costs and complex market conditions that put it at a disadvantage in international comparison. This problem not only affects the airlines, but also the many jobs of employees who could be put at risk by possible relocation of flight offers abroad. In a press release, UFO chairman Joachim Vázquez Bürger explained the union’s position and made it clear that the problem was not just due to personnel costs, but above all to management errors and location costs.
Competitive disadvantages due to high costs and different framework conditions
Ufo and Verdi argue that the German aviation market has structural problems that severely hinder growth compared to European standards. One of the main points of criticism concerns the high location costs at German airports. For example, the air traffic tax that airlines have to pay for passengers departing from Germany causes additional costs. This tax is comparatively high in Germany and makes the aviation industry less competitive with locations abroad. While aviation tax was significantly reduced or abolished in countries such as Ireland and Denmark, German airlines paid large sums for departures from domestic airports, which resulted in some airlines connecting their programs to German airports or relocating aircraft abroad. For example, Condor has announced that it will relocate aircraft abroad, which will directly affect jobs and supply in Germany.
According to UFO, this is a development that has worrying effects on the labor market and the social security of employees. With the disadvantage of flight offers in Germany, jobs will be lost and the working conditions for the remaining staff could worsen. Bürger explains: “In order to achieve the pre-Corona target values, we believe it is irresponsible to continue to hold on to precarious working conditions and wage evasion.” UFO also sees the situation as a symptom of management errors that result in slow growth and limited competitiveness reflect.
Demands on politicians: aviation tax and sustainable technologies
The central point of UFO and Verdi’s demands on the federal government is the immediate abolition of the air traffic tax in order to relieve German airports and airlines of competition and strengthen the location. In addition, Ufo is committed to promoting the research and development of sustainable aviation fuels. Sustainable alternatives to conventional kerosene are considered a crucial component for the future of aviation, but development costs have so far been high and the market for such fuels is still limited. Increased government commitment could create incentives for the production and use of environmentally friendly aviation fuels, which would not only benefit the environment but could also strengthen the competitiveness of German aviation.
The topic of intermodal transport concepts is also mentioned in Ufo’s demands. In the transport concept, they are calling for better networking of airports with local public transport and other transport options in order to enable more comfortable and cost-effective travel within Germany and Europe. This is intended to improve not only air traffic as such, but also the connection of all regions to international routes, which will benefit the German economy as a whole.
The European comparison: Germany brings up the rear in the recovery
A study by the European aviation association ACI Europe shows that Germany is lagging behind other European countries in the recovery of air traffic. While countries such as Spain and France have largely returned to pre-crisis levels, Germany continues to only reach around 80% of its pre-crisis passenger numbers. Ufo and Verdi see the main reasons for this as being the above-mentioned location costs as well as a lack of government support, which could not only help the industry recover more quickly, but also lead to stronger international competition. The call for an abolition of the aviation tax is growing louder, and the unions see this as an essential measure to stimulate German growth and reduce international competitive disadvantages.
Conclusion and outlook
German air traffic is at a crossroads where structural adjustments seem urgently necessary in order to both secure Germany as a business location and stabilize jobs in the industry. The unions see politicians as having a duty to create regulatory and tax incentives that will help air transport regain international competitiveness. With the demand for the abolition of the aviation tax and the promotion of sustainable aviation fuels, the future of German air transport is understood not only as an economic but also as an ecological and social issue. It remains to be seen how the federal government will respond to the unions’ demands and whether the proposed measures can have the desired effect in getting German air traffic back on track for growth.
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