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Trade unions demand reforms: High location costs endanger German aviation

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The German aviation industry continues to be under pressure. After the economic losses caused by the pandemic and the current challenges of the energy transition, another factor is now coming into focus: the high location costs at German airports. After the service union Verdi called on politicians to take action in advance, the Independent Flight Attendants Organisation (Ufo) is now also calling for a reduction in location costs and measures for better social conditions.

The challenges facing 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 compared to other countries. This problem affects not only the airlines, but also the jobs of many employees, which could be put at risk by possible relocation of flight services abroad. In a press release, Ufo chairman Joachim Vázquez Bürger outlined the union's position and made it clear that the problem is not only due to personnel costs, but above all to management errors and high 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 are severely hindering growth compared to other European countries. 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 compared to locations abroad. While the air traffic tax has been set much lower or even abolished in countries such as Ireland or Denmark, German airlines pay high sums for departures from domestic airports, which has led some airlines to reduce their programs at German airports or to move aircraft abroad. Condor, for example, has announced that it will move aircraft abroad, which will directly affect jobs and the 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 decline in flight offers in Germany, jobs are being cut and the working conditions for the remaining staff could deteriorate. Bürger explains: "In order to achieve the pre-corona targets, we consider it irresponsible to continue to cling to precarious working conditions and wage evasion." Ufo also sees the situation as a symptom of management errors that are reflected in slow growth and limited competitiveness.

Demands on politics: air traffic tax and sustainable technologies

A central point in Ufo and Verdi's demands to the federal government is the immediate abolition of the air traffic tax in order to relieve the competitive burden on German airports and airlines and to strengthen the location. Ufo is also committed to promoting research into and development of sustainable aviation fuels. Sustainable alternatives to conventional kerosene are considered a crucial component for the future of aviation, but development costs are still high and the market for such fuels is still limited. Increased government involvement could create incentives for the production and use of more 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. They are calling for a transport concept that promotes 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 would benefit the German economy as a whole.

The European comparison: Germany at the bottom of 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 pre-crisis passenger numbers. Ufo and Verdi see the main reasons for this in the aforementioned location costs and in a lack of government support, which could not only help the industry to recover more quickly but also to compete more strongly internationally. Calls for the abolition of the air traffic tax are 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 believe that politicians have a duty to create regulatory and tax incentives that will help air traffic to regain international competitiveness. With the demand for the abolition of the air traffic tax and the promotion of sustainable aviation fuels, the future of German air traffic is seen not only as an economic issue, but also as an ecological and social one. 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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