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September 11, 2024

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September 11, 2024

EU Commission demands repayment of state aid: Ryanair and Frankfurt-Hahn Airport affected

Jan Gruber September 11, 2024 08:32

In a significant step to preserve competition in the European market, the EU Commission has decided that the airline Ryanair and Frankfurt-Hahn Airport must together repay around €15 million in unlawfully received state aid. This decision marks another important moment in the fight against anti-competitive subsidies within the European Union. The EU Commission has found that both the airline Ryanair and Frankfurt-Hahn Airport have benefited from anti-competitive state aid. Specifically, Ryanair must repay around €13 to €14 million, while Frankfurt-Hahn Airport must repay €1,25 million. Interest must also be paid, as the measures in question stretch back over years, with decisions taken between 2005 and 2017. The core of the problem lies in the financial support measures granted to the two parties. For example, Rhineland-Palatinate had made land available to Frankfurt-Hahn Airport without demanding adequate compensation. Ryanair also benefited from financial incentives such as marketing agreements and training subsidies. These measures were classified by the EU Commission as distorting competition because they gave the companies concerned an illegal advantage. State aid and distortion of competition in the EU In the European Union, there are strict rules to control state aid to ensure that no distortion of competition occurs. These rules are designed to ensure fair competition by preventing financially strong countries from giving their companies unfair advantages through direct or indirect subsidies. If a state favours companies through financial support, this can lead to smaller or less financially strong competitors being disadvantaged and forced out of the market. The EU Commission therefore closely monitors how state aid

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Passenger numbers at airports in NRW increase in July 2024

Amely Mizzi September 11, 2024 08:02

In July 2024, the number of passengers at the six major airports in North Rhine-Westphalia increased by 4,4 percent compared to the previous year. The state statistics office IT.NRW counted a total of 2,2 million passengers, but this number remains below the level of 2019 before the corona pandemic, when 2,4 million passengers were recorded. There were particularly strong increases at the airports of Münster/Osnabrück (+29 percent), Niederrhein/Weeze (+25 percent) and Paderborn/Lippstadt (+8 percent). International air traffic increased by 3,7 percent, while domestic flights remained well below the 16 figures with an increase of 2019 percent.

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US Department of Transportation investigates frequent flyer programs of major US airlines

Jan Gruber September 11, 2024 07:38

In a wide-ranging investigation, the U.S. Department of Transportation (DOT) plans to review the frequent flyer programs of the four largest U.S. airlines - American Airlines, Delta Air Lines, United Airlines and Southwest Airlines - for possible unfair, deceptive or anti-competitive practices. This action is intended to ensure that consumers are getting the value promised to them from their rewards programs. The investigation could have far-reaching implications for the way the major airlines design and manage their loyalty programs. The DOT's investigation was launched due to concerns that the frequent flyer programs of the major U.S. airlines are not always transparent and fair to customers. Transportation Secretary Pete Buttigieg explained that while these programs offer real value to consumers, there is a risk that companies can unilaterally change the value of rewards. This is in contrast to a traditional savings account, where the account holder has control over their funds. The goal of the investigation is to protect consumers from potential detriment caused by opaque practices. Requirements for airlines As part of the investigation, airlines were asked to provide detailed information about their frequent flyer programs. Specifically, airlines must: Reactions from airlines Reactions to the investigation vary by airline. The lobby group Airlines for America (A4A), which represents many of the largest U.S. airlines, defended its members. A4A argued that U.S. airlines should be transparent about their frequent flyer programs and that policymakers should ensure that these benefits can continue to be offered to consumers. Delta Air Lines confirmed to Reuters that it had received the DOT's request and would respond. United Airlines and American Airlines

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Fraport sells stake in Delhi Airport for 126 million US dollars

Jan Gruber September 11, 2024 07:07

Fraport AG has sold its 10 percent stake in Delhi International Airport Limited (DIAL), the operator of Delhi Airport, to the majority owner GMR Airports Infrastructure Limited (GIL). The sales price is USD 126 million. Fraport has been involved since the airport was privatized in 2006 and has played a key role in developing the airport into one of the most important air traffic hubs in Asia. Despite the sale, Fraport will continue to be involved in the airport's operations through an existing operator agreement. The transaction is expected to close within 180 days, subject to approval by the Airports Authority of India and GIL shareholders.

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Jazeera Airways focuses on expansion despite geopolitical challenges

Amely Mizzi September 11, 2024 06:39

Amid geopolitical uncertainties in the Middle East, Kuwaiti low-cost carrier Jazeera Airways is optimistic about the future. Focused on growth and efficiency improvements, the company plans to establish new bases outside Kuwait and expand its route network. In particular, the airline is actively exploring the potential in new markets, especially in Southeastern Europe and India. At the same time, Jazeera Airways remains on the lookout for new business opportunities and is competing for a low-cost airline license in Saudi Arabia to further tap the market there. A key focus of Jazeera Airways' expansion plans is to expand direct routes from Kuwait. The airline aims to attract more travelers, especially from the leisure and pilgrimage traffic. CEO Barathan Pasupathi stated in an interview with *The National* that demand for direct flights from Kuwait is strong, prompting the airline to look for new markets. In the second quarter of 2024, Jazeera Airways launched new services from Kuwait to Krakow in Poland and Batumi in Georgia. These destinations in Southeast Europe are part of a strategy aimed at diversifying the airline's route network and offering more options to travelers from Kuwait and the region. Of particular interest are markets where Kuwait is currently renegotiating bilateral air services agreements, particularly in India. The airline hopes to gain access to new cities through these negotiations, especially secondary cities that have so far been less well served by Kuwaiti airlines. Competition for a low-cost airline license in Saudi Arabia Another potential growth market for Jazeera Airways is Saudi Arabia. The company already filed

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Nuremberg Airport records passenger record during summer holidays

Jan Gruber September 11, 2024 06:02

Nuremberg Airport recorded a significant increase in passenger numbers during the Bavarian summer holidays in 2024. Around 714.000 passengers took off or landed in Nuremberg, which means almost 3.000 additional travelers compared to the previous year. The busiest day was August 17 with over 19.300 passengers. The most popular destinations were Antalya, Mallorca and Heraklion on Crete. A total of around 4.570 takeoffs and landings were counted during the holiday season. 26 airlines regularly flew to around 60 non-stop destinations during the summer months. Even after the summer holidays, the offer remains diverse: the winter flight schedule from the end of October continues to offer numerous sunny destinations such as Egypt, Turkey and the Canary Islands. New destinations are Madeira and Hamburg.

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New flight connections in London-Stansted: British Airways and Ryanair expand

Amely Mizzi September 11, 2024 05:33

With summer coming to an end and the colder seasons beginning, London Stansted Airport (STN) has some good news for travellers: both British Airways and Ryanair will be launching new flight connections from Stansted in the coming months. In total, there are five new destinations served by these two airlines, and they are primarily designed to enhance the appeal of autumn and winter for both leisure and business travellers. British Airways, which resumed its presence at London Stansted Airport earlier this year, is introducing a new weekly connection to Split, Croatia, from September 7, 2024. The flights will be operated by regional airline BA CityFlyer using an Embraer 190, with departure from London Stansted every Saturday at 12:55 local time and arrival in Split just under two and a half hours later. The return flight will be offered the same day at 17:05. This new connection will offer passengers the opportunity to discover Croatia's beautiful Adriatic coast, a popular destination for travellers looking for a combination of culture and nature. Ryanair, the Irish low-cost airline, is adding four new destinations to its already extensive route network from October 2024. Of particular interest is the introduction of flights to Linz, Austria. Linz is currently not directly accessible from the UK and Ryanair will fill this gap by offering flights twice a week, on Wednesdays and Sundays. This is a significant step to improve access to new seasonal destinations. Linz, a city on the Danube with a rich cultural history, is expected to be a welcome addition to the network.

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Munich Airport relies on electric buses

Jan Gruber September 11, 2024 05:00

Munich Airport is taking another step towards its “Net Zero 2035” sustainability strategy with the introduction of ten electric solo passenger buses from MAN Truck & Bus Deutschland. A total of 2024 MAN Lion's City E 37 and E 12 electric buses are to be put into operation by the end of 18, with an option for 25 more vehicles. The buses will be operated by AeroGround, a subsidiary of Flughafen München GmbH (FMG), and are part of efforts to make the airport's fleet completely emission-free by 2030. According to Jost Lammers, Chairman of the Management Board of FMG, the switch will help reduce air pollutants and CO2 emissions while improving passenger comfort. The buses are particularly efficient for use on short distances and at low speeds on the airport premises. The vehicles feature modern safety and comfort features, including sustainable air conditioning. The project is funded by the Federal Ministry for Digital Affairs and Transport (BMDV) with 23,8 million euros. The funds come from the German Recovery and Resilience Plan (DARP) and the EU NextGenerationEU program. The charging infrastructure for the new electric buses is currently being expanded to support emission-free operation.

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EU Commission does not plan immediate taxation of kerosene: tax exemption remains in place

Jan Gruber September 11, 2024 04:33

The discussion about the taxation of kerosene, the fuel for aviation, is a common thread running through European climate policy. A recent draft from Brussels suggests that the tax exemption for kerosene in the EU is likely to remain in place for another 20 years. This means that the planned gradual taxation proposed by the EU Commission for 2028 will not be implemented as originally planned. The decision is the result of intensive negotiations under the Hungarian Council Presidency and reflects the difficulties in reaching an agreement among the 27 member states. The EU Commission had already put forward a proposal in 2021 to introduce a gradual taxation of kerosene from 2028. This proposal aimed to accelerate the switch to alternative, more environmentally friendly aviation fuels. The tax exemption for kerosene and maritime fuels is a significant issue in EU climate policy as it impacts on emissions from aviation and shipping, which are among the largest contributors to greenhouse gas emissions. Despite the EU Commission's ambitious targets, the proposal failed due to a lack of unanimity among member states. The rules on tax law in the EU require unanimity to adopt changes. The draft now proposes to extend the tax exemption for kerosene for another two decades. Shortages of alternative fuels A key reason for the delay in taxation is the current availability of alternative fuels, known as Sustainable Aviation Fuels (SAF). These fuels are intended to replace fossil fuels and reduce CO2 emissions in aviation. However, there are currently bottlenecks in the production and availability of SAF. The insufficient market share of these alternative fuels

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Discover Airlines and Tampa Bay Buccaneers enter into marketing partnership

Jan Gruber September 11, 2024 04:02

Discover Airlines, the Lufthansa Group's leisure airline, and the American football team Tampa Bay Buccaneers have announced a multi-year marketing partnership for the start of the 2024/25 NFL season. The aim of the cooperation is to strengthen the presence of both brands in their respective core markets through joint marketing and communication activities as well as events and raffles for flight and game tickets. The partnership was officially sealed on Monday evening at Tampa International Airport. Bernd Bauer, CEO of Discover Airlines, and Bryan Glazer, owner of the Tampa Bay Buccaneers, signed the contract during a celebratory ceremony. Germany is an important international growth market for the Buccaneers with a steadily growing fan base. The NFL is planning more games in Germany in the coming years to further increase the popularity of American football. Discover Airlines offers the only direct connection from Germany to Tampa Bay from Frankfurt and operates a total of 20 weekly flights to Florida. From summer 2025, the offer will be expanded to include three weekly flights to Orlando from Munich. This allows fans to experience the Buccaneers games live at Raymond James Stadium. Bernd Bauer explained: "Sport connects people and creates experiences that will be remembered for a long time. We look forward to welcoming many fans on board and bringing them directly to these unique sporting events." Bryan Glazer added: "This partnership will help to further expand our connection with German fans and generate additional interest in Tampa Bay as a holiday destination." The cooperation underlines the efforts of both parties to expand their international reach and address new target groups. The NFL has been expanding its international reach for several years.

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