Providing development aid or the provision of medicines around the globe would hardly be possible without air transport; neither would it be possible to study abroad for a semester. Tourism – which ensures economic stability in many poorer regions – also depends on air travel.

Do we really want to turn back the clock, as is currently being called for by some people? Hardly. Here at Lufthansa, we are leading the way with resolve. Our actions are determined by the interests of customers, employees and shareholders, as well as by society and the environment. Responsibility has always been one of the guiding principles of our company. Lufthansa invests billions of euros each year into new aircraft. Over the coming ten-year period, Lufthansa will on average be receiving a new aircraft every two weeks. We are giving our support to the development of alternative types of fuel so that, in the long-term, CO₂-neutral flights will become a possibility. We are offering our customers a new form of offsetting, which allows them to choose between the use of alternative fuels and the more well-known offsetting options. We offset the CO₂ emissions of all work-related air travel by Lufthansa Group employees worldwide. We are aiming at becoming CO₂-neutral in our ground operations by the middle of the next decade. This all demonstrates that we are doing a great deal to make aviation as sustainable as possible.

Almost three percent of global CO₂ emissions come from aviation. And even though this may be less than some people had thought, the sector is very aware of its responsibility in this regard. In the EU, the aviation sector has been growing in a CO₂-neutral way since 2012, and worldwide this will be the case as of 2021. For an offensive in favor of climate protection to be effective, teamwork is required. We need manufacturers to deliver innovative engines and aircraft. Customers can balance out the CO₂ emissions from their flights through voluntary offsetting in another area.

But, more than anything, we need a fair and appropriate set of rules. As aviation operates internationally, isolated national initiatives cannot achieve much. Quite the opposite – they place an added burden on our domestic industry and give a competitive advantage to our competitors in Turkey, the Gulf States and Asia. These airlines operate via hubs outside of Europe and are already today operating under completely different competitive conditions. The result: isolated national initiatives fail to lead to any savings in CO₂ emissions but instead simply shift them to other regions. This does not help the climate at all.

Government policy can also have a big impact beyond the clouds. We need a Schengen for the skies. Passenger aircraft in Europe currently have to take detours which mean that they use up to 10 percent more kerosene. The implementation of a Single European Sky would be a real climate protection measure.

This is a good example of the way in which a transformation into more ecologically-based aviation could succeed – through increased international cooperation. Because only climate protection policies that extend across national borders can be effective whilst having a neutral effect on competition.

High tax burden for aviation

The aviation sector in Germany already bears a substantial tax burden on account of user-based financing and air traffic tax. It has a different structure in comparison to the financing of road and rail transport. Only air traffic has to bear the costs of the infrastructure and security required for its operations. This means that airlines in Germany pay an annual figure of around 6 billion euros for the use of the required infrastructure on the ground and in the air. In addition to this, there is a special tax per passenger in the form of the air traffic tax, which brings in more than 1.2 billion euros a year for the state.

What is the situation regarding kerosene tax and VAT?

In order to create fair competitive conditions worldwide, it was agreed in the Chicago Convention of 1944, that no kerosene tax or VAT would be charged for flights that crossed international borders. For German domestic routes, airlines pay the full rate of VAT. The federal government could charge a kerosene tax on German domestic flights. The potential income in taxes from this source would amount to around 570 million euros. VAT charged on flights crossing international borders – which could be charged exclusively over German territory – would raise around 300 million euros. The total from these sources of income would be significantly lower than the amount raised through the air traffic tax.

Isolated national initiatives will not help the climate

Aviation already pays a price for CO₂ in Europe. Since 2012 it has been the only mode of transport that participates in emissions trading. Additional nationally levied taxes or bans on top of current air traffic tax would weaken Germany’s position as an aviation hub, without gaining any significant environmental or climate-related benefits. It would instead lead to emissions being shifted to hubs abroad. If a kerosene tax were to be introduced, airlines would increasingly start refueling in other countries. The additional weight carried during their flights would then in turn lead to an increase in CO₂ emissions. This highlights the fact that, particularly in aviation, it is essential to work on strengthening climate protection rules that are applicable worldwide. The sector has already set an ambitious climate policy agenda with the global carbon offsetting system CORSIA.

Considerable demands are being placed on the Lufthansa Group in terms of its core business, the airlines. On its European routes, the company is facing tough competition from low-cost airlines that are pushing their way into the market extremely aggressively. The countless cases of insolvency among EU airlines in the past few years show how difficult this environment is. On long-haul routes, the Lufthansa Group is having to stand up to competitors who are in receipt of state subsidies and who are not subject to European tariffs or social standards.

Focus on sustainable flying

Set against this backdrop, the Lufthansa Group has decided to concentrate on flying in future. This means above all a further focus on investment in this segment. This will give us the scope to invest even more heavily than to date in fuel-efficient aircraft and thereby in climate-friendly mobility. This goal is in line with the political and societal expectations that are directed at the Lufthansa Group.

New impulses for the LSG Group

With an owner that defines catering as their core business and will make the corresponding investments, the LSG will gain the financial backing required to position itself in an even better way in the future with innovative products to create an attractive, sustainable working environment. Right from the start of the negotiations, the Lufthansa Group have emphasized the fact that they will carry out an in-depth examination of the concepts of the bidders on the basis of qualitative criteria and have made it clear that they are looking for an owner for the LSG who has a long-term focus and who will offer both the company and the employees a future-proof business model.

Lufthansa is very satisfied with the LSG’s quality and service and would like to continue their partnership with them into the future. In the negotiations on the sale of the European business of LSG which will first of all be conducted, a long-term catering contract is therefore a key component. Lufthansa and LSG will therefore continue to be closely linked. This will create perspectives for both sides for many years to come. Furthermore, since the beginning of the sale process, the management boards of the Lufthansa Group and LSG have been addressing the questions of employees at number of events and have been in dialogue with employee representatives. They will continue to be involved in the process.

Yet in order for this principle to continue providing an effective incentive, it is important that the schedule of charges is not overly harsh. Too high a burden in terms of noise-related charges may even have a counter-productive effect – they siphon off revenues that the airlines urgently need to be able to purchase more modern and quieter aircraft. The investment required for these is considerable. German airlines have 210 new aircraft on order – at a list price of EUR 42 billion in total. This is money that first of all needs to be earned. In addition to this, airlines have in recent years provided more than EUR 800 million to equip homes with soundproofed windows and housing units for external blinds, for example. All these investments make a contribution towards protecting people from noise and are important in maintaining good relations between all those involved in the areas around an airport.

Would a wider span of charges still be expedient?

Noise-related charges are also calculated according to the time of day and at various different altitudes. The span of charges is already considerable today. This means, for example, that the noise and time-related component of the charges levied at most airports is already twice as high at 10 pm as it is during the day. At the few airports where flights are still permitted at night, charges may be increased by a factor of 3, 4 or even 5. A further increase in this regard cannot create an effective incentive for the airlines. Firstly, because airlines need to fly an aircraft for many years before its purchase cost has been amortized, and secondly it is often the case that there are no quieter aircraft available from the manufacturers. If the noise-related charges are nevertheless increased, this will only serve to increase the fees earned by the airport operators.

Supervisory authorities needed

In my opinion, the regulatory authorities ought to give more attention to this issue and should try to ensure a balance between the interests of the various parties involved in terms of realistic demands and affordable charges. Airport operators should not be able to use noise-related charges as a tool to leverage additional income – especially because, in most cases, airlines have to bear the full costs for passive soundproofing. It is likewise critical for Germany as a center for aviation when the levying of excessive charges is misused, for example in the morning and evening hours, as means of actually placing restrictions on operations.”

Matthias Exner, an engineer at Lufthansa Technik, is familiar with the situation in the town of Kyotera. In 2017, he spent a number of weeks living there. His task: as an active member of the NGO Engineers without Borders, he came to help to build cisterns and a canteen at another school in the town. The project was successful. “Ultimately, we were able to provide an impulse and give them structural help with a relatively modest level of funding,” says Matthias Exner. “The fact that things worked out well there and that the school is now in a much better financial position is mostly down to the efforts of the local people.”

Sustainable in all respects

On the basis of this experience, Engineers without Borders – with co-financing from the help alliance – are now giving their support to the Divine Mercy High School. New toilets and washrooms, a better connection up to the water supply and a water filter to provide drinking water are planned. Not only the students will benefit: The sanitary equipment, pumps and water tanks will be purchased exclusively from Ugandan manufacturers. As the facilities are to be built by local craftsmen, this will help them to build up knowledge and experience and to generate income in another area apart from agriculture. And the tiles which will be required will not be baked according to the usual process but will instead be mechanically pressed. The resulting material is better, cheaper and significantly more environmentally-friendly – for 10,000 to 20,000 tiles, the traditional baking process requires around 10 tonnes of firewood with the corresponding CO₂ emissions. An enquiry has already been received from a member of the clergy who has asked whether these tiles could be used in the building of his new church.

An infectious zest for life

“It is incredible to witness the zest for life and the optimism which the children in Kyotera bring with them to school and to see how keen they are to learn”, says Matthias Exner. “It really motivates us to try and take away some of their burdens and to give them support in their everyday lives.”