Germany's air transport tax under scrutiny: Ryanair advocates for its outright elimination
In 2023, Germany's governing coalition, comprising the CDU, CSU, and SPD, made a commitment in their coalition agreement to enhance the international connectivity of German airports. This promise, which forms a key part of the new federal government's plans, could have far-reaching economic implications, not only for the aviation sector but also for employment and infrastructure development.
The aviation industry stands to benefit significantly from this initiative, with the potential creation of 1,000 new jobs and the expansion of tourism and business travel. Ryanair, a leading European low-cost airline, sees this as an opportunity to stimulate growth in Germany, specifically by abolishing the air traffic tax.
Ryanair's CEO, Eddie Wilson, believes that Germany is at a critical juncture and requires profound structural reforms to achieve a full recovery in aviation. Wilson suggests that Germany must position itself competitively in Europe to catch up in aviation. In support of this, Ryanair has pledged a $3 billion investment in Germany, contingent on a significant reduction in airline taxes and fees.
The proposed measures could potentially have positive effects on tourism and business travel in Germany. Countries such as Sweden, Hungary, and Italy have demonstrated that waiving air traffic tax encourages airlines to invest and strengthens regional competitiveness, according to Ryanair. If the federal government implements the demanded measures, Ryanair plans to double its passenger numbers in Germany, reaching up to 34 million passengers annually.
This increase would be facilitated through additional aircraft, new routes, and the expansion of existing locations. However, high entry costs, including air traffic tax, air traffic control fees, security fees, and airport fees, are identified as major growth barriers in Germany.
Dominik Lelle, a member of the online editorial team of AERO INTERNATIONAL since 2023, shares a passion for aviation and travel. Lelle aims to make the world of aviation accessible and engaging for readers. He personally enjoys traveling and looks forward to discovering new horizons.
The expansion of Ryanair's presence in Germany could lead to improved connectivity, potentially stimulating economic growth. The economic significance of these steps could strengthen the aviation location in Germany and have positive impacts on employment and infrastructure development.
As we move forward, it will be interesting to see how these developments unfold and the impact they will have on Germany's aviation industry and economy as a whole.
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