RESOLUTION OF THE SUPERVISORY BOARD
OF DEUTSCHE LUFTHANSA AG
New visions for aviation to support a sovereign Europe
The European, and with it the German, aviation sector is under significant pressure. The European Union has been losing its international competitiveness for years. Geopolitical developments are increasingly exacerbating this situation.
We do everything within our means to compensate for these competitive disadvantages: we are modernizing our aircraft fleet, digitalizing travel chains and products, and promoting sustainability in all its dimensions.
However, many aspects lie beyond the control of companies. It is up to policymakers to create the necessary framework that makes sustainable economic activity possible in the first place und thus is a prerequisite for good sustainable workplaces. Unfortunately, European and German policymakers increasingly fail to meet this obligation. On the contrary, they rely too heavily on regulations that lose sight of the interests of the European economy. Mario Draghi also emphasized this point in his report on the future of the EU's competitiveness.
In recent years, extensive regulations have been introduced that unilaterally and severely disadvantage EU network airlines and hubs in international competition. Specifically, the EU's climate, trade, and foreign economic policies weaken the economic strength of European companies. The beneficiaries of this political imbalance are airlines from the Middle East, Turkey, and China, which are far removed from the EU in terms of social and environmental standards. Moreover, they are constantly supported by massive investments in their aviation infrastructure.
We are calling on the European Commission and the incoming German government to correct course:
#CLIMATE POLICY
The laws and legislative proposals of the European Green Deal unilaterally affect EU network airlines. They are poorly designed from a climate perspective because they lead to carbon leakage. They jeopardize EU jobs and weaken Europe's connectivity, and thus the continent's strategic autonomy. This applies in particular to the blending mandate for Sustainable Aviation Fuels and the EU Emissions Trading System.
Obviously, the Green Deal is not a role model for other world regions. This is because it does not sufficiently consider economic interests. The aim should be to make “competition neutrality” a key criterion in the overdue revision of this package of measures. Legislation that primarily only affects EU companies should be quickly revised or subject to a moratorium until further notice.
#TRAFFIC RIGHTS/QATAR
The competitive distortions that impact EU airlines are manifold and substantial. The EU's air transport agreement with Qatar is a significant burden. In addition to the radically unequal market conditions and social policy disparities, there are serious corruption allegations.
It is long overdue that the European Commission suspends the air transport agreement with Qatar. It is incomprehensible that this response has not yet occurred, nor have European public prosecutors been involved yet. The already known, and for months unchallenged, allegations of corruption are serious and can no longer be ignored.
#RUSSIA
We support the political goals of the EU and are part of the Europe-wide solidarity against Russia's invasion of Ukraine. Nevertheless, the EU must also consider the business consequences of sanctions and find answers to them. As a result of Russia's war of aggression, EU airlines have not been able to use Russian airspace for almost three years. This mainly affects long-haul routes to China, Japan and South Korea. By contrast, Chinese airlines, for example, fly over Russia at high frequency and are unilaterally expanding their connections to Europe. It should also be emphasized that particularly airlines from Turkey have significantly increased their capacities to Russia since the outbreak of the war – while maintaining extensive services to the EU. This results in further substantial competitive distortions at the expense of the EU airline industry.
So far, there has been no economic policy response to these war-related losses of market share. We call on the European Commission and the Member States to establish a level playing field through financial or traffic law measures.
#BUREAUCRACY
The regulatory and bureaucratic burdens, especially in the area of ESG, are disproportionate and almost unbearable for companies. Legislation is being introduced without considering the administrative impact and follow-up costs. As a result, bureaucracy continues to increase. This applies in particular to measures of the Green Deal (e.g., CSRD, Green Claims Directive, Anti-Tankering).
We call on the European Commission to review the legal status quo, to tangibly reduce the administrative burden on companies instead of further exacerbating the situation, and to refrain from additional planned initiatives until further notice.
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