Sky-high location expenses impede passenger traffic growth
Title: Soaring Location Costs Push Down Passenger Numbers in European Air Traffic, Study Shows
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Location costs in European air traffic significantly impact the number of passengers, reveals a study by the German Aerospace Center (DLR). Axing the air traffic tax could potentially inject an extra 2.55 to 5.1 million passengers into the skies above Europe, primarily from Germany.
If location costs had stayed steady at pre-COVID-19 levels, passenger numbers would be approximately 1.8 million higher today. But it's not just sky-high location costs to blame. Germany's sluggish economic growth since 2019 has further stifled passenger numbers. If the country's GDP had grown at the EU average, there might be up to an additional 1.8 million passengers. In total, the passenger shortfall versus pre-crisis levels stands at just over 20 million flights.
"Air travel is vital," asserts Stefan Schnorr, State Secretary at the Ministry of Transport. As an export-driven nation, Germany heavily depends on robust global connections. To counter transportation setbacks, it's crucial to tackle exorbitant state costs. Only the UK, the Netherlands with their London and Amsterdam airports, and German rivals like Frankfurt am Main and Munich currently outshine Europe's other major players.
Enrichment:
- The elimination of air traffic taxes could empower Europe, spearheaded by Germany, to see a boost in passenger numbers [1].
- In comparison to the pandemic's onset, if location costs had persisted at 2019 levels, European passenger numbers would’ve been 1.8 million higher [1].
- If Germany's economic expansion mirrored the EU average, an extra 1.8 million passengers could have been expected [1].
- High state costs, especially location costs that have skyrocketed by 70% since 2019, pose a substantial hurdle in the industry [1].
- Revamping or removing the traffic tax could be integral to bolstering the air traffic market in Germany [1]. Proposed changes include shifting tax burdens, such as hiking charges for business flights and slashing them for economy travelers.
References:[1] Source: ntv.de, rts
- Germany's sluggish economic growth since 2019 and the high costs associated with vocational training within the aviation industry, such as location costs, have contributed to a significant decrease in passenger numbers in European air traffic, as suggested by the study by the German Aerospace Center (DLR).
- If Germany were to revamp or remove the air traffic tax, it could potentially stimulate an increase in passengers, with an estimate of an additional 2.55 to 5.1 million passengers, according to the study.
- In addition to the air traffic tax, the costs incurred in vocational training for aviation professionals in Germany also play a role in the industry's challenges, as Germany aims to counter transportation setbacks and build a stronger presence in European air traffic, alongside major players like Frankfurt am Main and Munich.
