The CDU’s Economic Council is calling for the complete abolition of the air traffic tax. Prior to final debates scheduled for Thursday in the Bundestag regarding planned rate reductions, the association has advanced calls for further measures necessary to improve Germany’s attractiveness as an air transportation hub.
Wolfgang Steiger, the General Secretary, stated that simply lowering the air traffic tax is insufficient to remedy current competitive disadvantages. Instead, he asserted that the tax should be entirely abolished, accompanied by a reduction in associated airport charges and fees. He added that cancelling the tax would also benefit consumers. From a strategic perspective, strengthening Germany’s air transport sector would ultimately generate higher tax revenues once airlines and jobs return to the country.
Steiger was also critical of the proposed method of financing the tax reduction, arguing that drawing funds from the transport budget would necessitate cuts to vital investment areas. He suggested that alternative financing should come from reducing consumer spending instead.
According to Steiger, the overall air traffic sector requires significant catch-up. He pointed out sharp disparities in recent growth figures, noting that while Germany’s air transport had grown by only 1.7 percent over the past ten years, France’s growth stood at 30 percent and Poland’s growth was even more dramatic at 122 percent. He argued that high state-induced costs have severely impacted the sector, contributing to a loss of international competitiveness. Though he maintains that the air transport industry will continue to grow, the critical question, he concluded, is whether this growth will occur with Germany’s current airports and airlines, or increasingly without them.
The current legislative efforts are underpinned by a coalition agreement between the CDU/CSU and SPD, which aims to reverse the previous government’s tax hike. According to a draft law for changing the Air Traffic Tax Act, the tax paid by airlines would drop to pre-May 2024 levels by July 1, 2026. A vote on this is scheduled for Thursday in the Bundestag following a thirty-minute debate.
The high operating costs in the sector have recently led several major carriers, including Easyjet, Ryanair, and Lufthansa, to slash or withdraw routes to and from Germany.
