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Germany's Airline Industry Faces Decline Amid Rising Costs and Regulatory Challenges

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Lufthansa CEO warns that rising costs and government regulations are leading to a decline in Germany's attractiveness as a business location, with airlines canceling flights and urging government action to boost air traffic.


Concerns Over Germany's Airline Industry Decline

Lufthansa CEO Carsten Spohr has raised alarms about the declining attractiveness of Germany as a business location due to rising costs in the airline industry. Spohr expressed his worries in an interview with Bild am Sonntag, indicating that excessive government fees are leading to a reduction in flight availability. This trend could deter foreign investors, as airlines like Ryanair and Lufthansa's Eurowings have recently canceled numerous flights from German airports due to these high costs.

Spohr emphasized the critical need for Germany to maintain its status as a competitive aviation hub, stating, "We cannot continue to stand by while Germany lags behind as an aviation hub." He pointed out that increased flight fees and the air traffic tax, which was raised last May, are contributing to the issue. Furthermore, additional government regulations regarding the use of electrofuels are expected to exacerbate the situation, as the necessary infrastructure and supply for these fuels are not yet in place.

Call for Government Action to Boost Air Traffic

In response to these challenges, the German Airports Association (ADV) has urged the federal government to implement measures to revitalize air traffic in Germany. According to ADV, the country’s position as a premier air travel destination has deteriorated since 2013, with Etihad CEO Ralph Beisel questioning when the government will take action to rectify this decline.

The opposition party, Christian Union, echoed these sentiments, criticizing the government's recent policies and calling for a repeal of the increased air traffic tax. Anya Karlitske, a spokesperson for the parliamentary group, stated that the government's actions have gone too far and are detrimental to the tourism and airline sectors.

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Refs: | Aljazeera |

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