German airlines lose market share despite rising passenger numbers

Source: Xinhua| 2017-08-07 19:55:40|Editor: ying
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BERLIN, Aug. 7 (Xinhua) -- German airlines are concerned that they are losing market share to foreign competitors in their home market, Stefan Schulte, the president of the German Aviation Association (BDL), told newspaper Frankfurter Allgemeine Zeitung on Monday.

According to BDL figures, local carriers such as Lufthansa, Air Berlin, Condor and TUI Fly saw a 5 percent annual increase in passenger numbers to a total of 76.8 million during the first half of 2017. Last year, the BDL had reported a 0.7 percent drop in passenger numbers.

Nevertheless Schulte warned that "German aviation firms are still losing market share."

German airlines were worried despite their strong recent figures because foreign airlines were experiencing faster growth, a circumstance which was increasingly reflected by their increased presence at German airports.

Business for competitors from abroad grew by 6.4 percent to 109.8 million passengers during the same period. In the first half of 2017 Lufthansa, including its low-cost carrier Eurowings, Air Berlin, Condor and TUI Fly only accounted for 56 percent of available seats, down from 62 percent a few years ago.

Schulte blamed aviation taxes and security costs for the loss in market share. Airlines delivered 1.07 billion euros (1.26 billion U.S. dollars) in taxes to German government authorities in 2016 and had to shoulder 656 million euros of expenses for passenger and baggage controls.

The BDL president argued that there were reasons to support local airlines aside from their roles as job creators. He stressed the importance of domestic carriers with international hubs in Germany as a means to preserve a diversity of routes.

"If we only relied on foreign carriers, Germany's connections in air traffic would be determined solely by whether we are a lucrative market for them," he said.

The growth of affordable airlines from other European nations including Easyjet, Norwegian and Wizz Air, is a major driver behind recent changes in the landscape of the German aviation market.

In total, non-German European airlines experienced 8.8 percent growth in Germany during the first half of 2017. The German market for low-cost airlines has more than doubled since 2011.

Non-European premium carriers such as Emirates, Etihad, and Qatar Airways further contributed to German firms' shrinking market share.

Schulte hoped that the German government would revisit reform proposals to lower the financial burden of aviation taxes and enhanced security checks made by the Transport Ministry of Alexander Dobrindt (CSU) during the next parliament.

Schulte is also the CEO of Fraport AG, the firm which operates Frankfurt International Airport.

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