Tough competition: airlines from abroad

According to figures from the German Air Transport Association for the first half of 2016, German airlines are lagging well behind in an international comparison. While passenger air traffic grew by 6% worldwide, German airlines shrank by 0.8%. The main beneficiaries of this growth were competitors from the Middle East, Asia and Africa. Strong competitors for German and European airlines are therefore mainly the companies outside the EU. They do not have to take EU directives into account and thus often have plus points in terms of competitiveness.

    German airlines are burdened by the air traffic tax.
    Night flight bans as well as fees for airports also mean enormous disadvantages.
    Governments outside the EU often support national airlines.
    High fragmentation in the European competitive environment

Observers therefore fear that European airlines will lose importance in the long term. New guidelines are intended to enable companies to operate better in the global market. This is intended to save jobs in the long term and secure the future prospects of the industry. This also includes the demand that investors from outside the EU be allowed to take over airlines.

Airlines: turbulence in the travel industry

Travel companies and airlines are always forced to react quickly to current developments. Natural disasters cause sales to plummet, terrorist attacks unsettle travelers, and systematic, generous subsidies favor international competition. Acute fluctuations and new trends particularly affect smaller airlines that, for example, experience a drop in sales due to political unrest and are unable to compensate for these losses in other regions. But larger airlines also have to prepare for risks and respond to aggressive competitors. Ownership is sometimes a good protection against crises - it makes it easier for airlines to obtain loans and capital. Accordingly, some investors are critical of leasing when companies rely largely on borrowed aircraft.

New guidelines: Getting on a par with the competition

European companies therefore hope that the EU will react in time and significantly reduce competitive disadvantages. This is supported above all by the fact that suppliers from the Arab region are taking advantage and benefiting from more favorable offers. Negotiations with countries outside the EU to adopt European regulations are generally viewed pessimistically. At the same time, time is pressing: if global equality of opportunity is not ensured, Europe will gamble away its dominance in aviation. In addition, experts recommend abolishing restrictions on investors. Financiers from non-European countries would then be allowed to buy airlines from EU countries - until now, majority stakes have been prohibited.

 

Conclusion:

    Air Berlin: no planes of its own, only leasing
    Advantages: More flexibility, better response to fluctuations
    Lufthansa: Owns most of the aircraft, thus greater security
    Travel industry is determined by trends on the global market in https://exnesslatam.com/calendario-economico/
    For EU airlines: disadvantages in terms of competitiveness
    International airlines often receive subsidies
    Hope in politics: Change EU directives
    Ensuring strength in aviation through equal opportunities