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Challenges Facing German Aviation Industry
2024-10-13 09:00:09

Challenges Facing German Aviation Industry

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Lufthansa's CEO Carsten Spohr has raised concerns over the shrinking flight schedules in Germany, attributing this trend to escalating government costs and high airport fees. The situation threatens the competitiveness of the German aviation sector.

Spohr's warnings are echoed by CDU leader Friedrich Merz, who acknowledges that previous government decisions have exacerbated the current challenges. Airlines like Eurowings and Ryanair are already scaling back operations, with Eurowings cutting routes and Ryanair reducing services in key cities due to financial pressures.

Additionally, Spohr criticizes proposed government regulations, such as E-Fuel blending mandates, which may further limit airline offerings. As the industry grapples with these issues, the future of air travel in Germany hangs in the balance.

Related news on that topic:

Ryanair's Flight Reductions in Germany: A Response to High Costs

Ryanair has announced significant reductions in its flight offerings in Germany, effective from summer 2025. The airline plans to cut 22 routes, including flights to Dortmund, Dresden, and Leipzig, resulting in a 12% decrease in its German operations. Additionally, Ryanair will reduce its capacity in Hamburg by 60% and in Berlin by 20%. The decision is largely attributed to the German government's failure to lower air traffic taxes, security, and navigation fees, which Ryanair has criticized for escalating operational costs. The airline had previously warned in August that its German services would be scaled back if the increased air traffic tax, introduced in May, was not revoked. These reductions reflect broader challenges faced by airlines operating in Germany, where high location costs have prompted similar moves by other carriers. The Bundesverband der Deutschen Luftverkehrswirtschaft reports that taxes and fees for air travel have nearly doubled since 2020, positioning Germany as one of the most expensive markets in Europe. As Ryanair reallocates its resources, passengers may face higher prices due to reduced competition on affected routes.

Ryanair Cuts Services Amidst High Costs in Germany

Ryanair is significantly reducing its presence in Germany, slashing 1.8 million seats and 22 routes due to soaring taxes and fees. This decision reflects a broader struggle within the airline industry, as Germany has only regained 82% of its pre-pandemic air traffic. The airline's CEO criticized the government's lack of support for growth, particularly in light of Lufthansa's pricing power following a major bailout. Additionally, Hamburg airport's plans to increase fees in 2025 threaten further competitiveness. In a related move, Ryanair will eliminate check-in counters at various airports, pushing passengers to utilize its app for boarding. These changes signal a challenging environment for budget airlines operating in Germany.

Read 4 more recent news on this topic

The press radar on this topic:

DER SPIEGEL
13. Oktober 2024 um 06:07

Lufthansa CEO warns of shrinking flight schedules after announcements by Eurowings and Ryanair - DER SPIEGEL

Economy
Politics
Lufthansa CEO Carsten Spohr warns of shrinking flight schedules in Germany due to high airport fees. Eurowings will discontinue connections from Hamburg to Cologne-Bonn and to six other destinations in Europe and North Africa as part of the summer flight schedule 2025. Ryanair will cease operations in Dortmund, Dresden and Leipzig. Savings were recently planned at Berlin's BER. The blending of synthetic fuel with kerosene is intended to reduce the climate-damaging CO₂ emissions of aircraft. Sp..
Frankfurter Rundschau
13. Oktober 2024 um 07:07

Lufthansa CEO threatens shrinking flight schedules and fears further 'national solo efforts' by the traffic light coalition

Economy
Politics
Lufthansa CEO Carsten Spohr warns of shrinking flight schedules and negative impacts on the German business location due to high government costs. Ryanair announces cuts in Dortmund, Dresden, Leipzig and Hamburg. Eurowings plans to reduce 1,000 flights in Hamburg. The air travel tax leads to competitive disadvantages.
Deutsche Welle
13. Oktober 2024 um 08:21

Lufthansa warns of shrinking flight schedules

Economy
Politics
Lufthansa warns of shrinking flight schedules in Germany due to high fees and taxes. Lufthansa CEO Carsten Spohr fears negative impacts on the business location. Lufthansa subsidiary Eurowings is reducing flights to and from Hamburg due to significantly increased location costs. Ryanair is cutting its offering in Hamburg and Berlin due to rising taxes and fees.
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