Lower taxes and fees so that German aviation remains internationally competitive, the right to a strong role for German factories in the construction of the next Airbus medium-haul aircraft, a pioneering role in the use of kerosene alternatives and a new fighter jet model with a strong share of domestic industry – with these measures and goals the federal government wants to strengthen German aviation. At the start of the ILA industry trade fair in Berlin, the cabinet decided on a new aviation strategy on Wednesday. It is intended to set the course so that Germany “becomes and remains permanently successful as a leading aviation nation in the next 15 years”.
Chancellor Friedrich Merz (CDU) said during his tour at the ILA that global air traffic will double by 2050. “We as Europeans want to take part in this.” The aerospace industry has the best growth rates of all sectors. “We want to be at the forefront.” In the aviation strategy, the government addresses flight operations with airlines and airports as well as manufacturers and suppliers to the aviation industry for civil and military purposes. Together they form a “strategically important sector” that is “the engine for Germany’s globally networked economy, employees and value creation,” it is said.
An alliance of eight companies
One section of the new strategy was only introduced at very short notice: that of the next generation fighter jet. Until recently, there was a gap in drafts of the paper due to the uncertain future of the Franco-German FCAS aircraft project. After the failure due to major differences between the manufacturers Dassault and airbus The federal government is now relying on an alternative that is to be developed by 2040 with “significant participation from the German aviation industry”.
An alliance of eight primarily German companies, including the Airbus Group, whose defense division is based in Germany, has been formed. The companies involved tried to provide clarification. The eight companies are not a new consortium for the construction of the fighter aircraft, said MTU CEO Johannes Bußmann at the ILA. But we are ready to move forward with a follow-up project. The manager emphasized that there was “a break in cooperation between two companies, not between Germany and France.” Bussmann said the industry now needs a new time frame for how to proceed with the construction of a sixth-generation fighter jet. Nothing has changed in terms of requirements.
“Hopeful” waiting for “clear order”
Michael Schöllhorn, head of the Airbus defense division and president of the aviation industry association BDLI, said they are now “hopefully waiting for a clear order as to what will happen next with FCAS.” He welcomes the fact that Merz and French President Emmanuel Macron have ended the deadlock. “We are ready to take responsibility, we have the capacity. We are not advocating for Germany to go it alone, but we want to see German industry decisively involved,” said Schöllhorn.
In the strategy, the federal government also makes demands for civil aircraft production. For the Airbus medium-haul aircraft that will be built in the coming decade to today’s A320 Neo is to follow, “overall system responsibility” is named as the goal to strive for; they want to demand system responsibilities at German locations. The factory location in Hamburg-Finkenwerder is central for the A320 series. “The next medium-haul aircraft should be built in Hamburg again,” said Chancellor Merz at the ILA.
Complaint about increased taxes
Airlines and airports were also expected to set the course in aviation policy. They had recently complained about increased taxes, which they see as the main cause of the weak post-Corona recovery in air traffic in Germany compared to international standards. The government is now vowing to ensure that the industry is not “disproportionately burdened compared to international standards”.
Aletta von Massenbach, head of Berlin Airport and President of the ADV airport association, welcomed the fact that the aviation strategy formulates “ambitious goals”, but these still need to be backed up with concrete measures. Michael Engel, managing director of the BDF airline association, criticized the strategy for remaining “too vague where it becomes crucial for competitiveness: in reducing state location costs”.
The paper mentions, among other things, the decided reduction in ticket tax from July 1st and a reduction in pilot fees by 2029. The industry had already classified the tax cut as insufficient. Ryanair manager Eddie Wilson chose harsh words. Publishing a strategy without concrete measures to reduce costs is “a complete waste of time”. However, the Union and SPD parliamentary groups want to introduce a motion for a resolution, a draft of which is available to the FAZ, to the Bundestag in order to initiate an examination of further steps to reduce the ticket tax.
The government attributes a central role to the use of alternative kerosene (SAF). So far it has been produced almost exclusively from old frying oil and organic waste; there is currently no synthetic production of e-fuels on an industrial scale. Airlines warn that the EU’s emissions restrictions that come into effect from 2030 can hardly be met. Government funding is intended to end investors’ reluctance to invest in synthetic kerosene.
The federal government relies on a double auction mechanism. In an initial auction, an intermediary will purchase synthetic SAF, which will secure income for manufacturers and investors. Airlines will then be able to buy the fuel in a second auction. If the price that airlines pay is lower than what the middleman paid, the state wants to cover the difference. Two billion euros are to be earmarked for this between 2030 and 2039.
From the perspective of Green transport politician Tarek Al-Wazir, this is still “not a future strategy” and “powerful incentives” are needed. In the government, however, different ministries pursued different goals when it came to e-fuels, including “mismanagement” such as the desire to use the hardly existing e-fuels in cars and heating systems.
