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15-Apr-2025 2:58 AM

Lufthansa Group: Coalition agreement sends important signals for German aviation

Lufthansa Group, in its Apr-2025 Policy Brief, stated (14-Apr-2025) the CDU/CSU and SPD parties' coalition agreement sends important signals for the German aviation industry, welcoming commitments to growth, modernisation and competitiveness. The group emphasised the urgency of translating these commitments into tangible relief, especially through the reversal of the aviation tax increase and broader reductions in aviation related fees, including those for security and air traffic control. The group stressed that such relief must go beyond regional airports and support major international hubs such as Frankfurt and Munich, which face the brunt of global competition. Lufthansa also praised the coalition's stance on ensuring competition neutral climate policies, particularly regarding the EU sustainable aviation fuel (SAF) quota, which it claimed disadvantages European carriers and risks traffic shifts and carbon leakage. The group backed proposals to allocate 50% of aviation related EU Emissions Trading System revenues toward scaling SAF production and supported the abolition of the German power-to-liquid SAF quota, describing it as non-compliant with EU law and impractical. Lufthansa also urged the German Government to advocate in Brussels for regulations that protect European competitiveness, value creation and employment. [more - original PR]

Background ✨

The coalition agreement between Germany's CDU/CSU and SPD parties was welcomed by several aviation associations as a crucial step for strengthening Germany's aviation competitiveness. Flughafenverband ADV noted the importance of reversing the 2024 air transport tax increase and removing the power-to-liquid SAF quota to reduce industry costs1. Similarly, the Federal Association of German Airlines highlighted the need for further cost reductions beyond tax reversals to enhance competitiveness2. The Board of Airline Representatives in Germany stressed the need for cost relief to restore Germany's air transport sector3.

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