Germany will offer financial support to the aviation sector

In a speech this Sunday in Berlin, the German Minister of Transport, Andreas Scheuer referred to the need to support the aeronautical sector given that it is against the wall, paralyzed, due to the consequences of the coronavirus pandemic. He noted with concern: “For a while we will no longer have the full spectrum that air mobility offers. Some are happy about this, I am not. And we will have to continue helping the sector.”

He also referred to the 1 billion euro (about $ 1.2 billion) government aid measures for Lufthansa and said: “Of course we are also thinking about airports. We are currently preparing a proposal for regional airports and major commercial airports “. The goal, Scheuer said, is to maintain existing infrastructure. “Everything that closes, everything that is no longer online, will not reopen,” he said.

The Association of German Airports (ADV) welcomed the minister’s announcement to examine an ancillary proposal from the sector. “Airports are with their backs against the wall,” said ADV CEO Ralph Beisel, adding that non-revenue flight operations will not be able to be sustained in the long term.

He explained that the cost reduction measures introduced by the airports could not compensate for the drop in revenue and that the accumulated losses of German airports by the end of next year will amount to more than 2.2 billion euros.

Air traffic is one of the sectors most affected by the crisis derived from the coronavirus pandemic. Reserves have fallen drastically and a quick recovery is not in sight, which intensifies the pressure to save on companies. Recently, Lufthansa Chief Executive Officer Carsten Spohr made it clear that the group’s planned cuts to the fleet and personnel so far are not enough.

New trends in the area

Scheuer noted: “If an airline like Lufthansa flies only 30 percent of its capacities it has much higher costs.” Regarding Airbus, he commented that a European aircraft manufacturer was just as important in the overall aviation system as air traffic control and baggage handling.

He stressed that if there are fewer flights, this will also have an impact on airport stores and even ground services. On the other hand, business trips are being replaced by video conferencing. It is a change in trend. However, Scheuer pointed out that these changes will have consequences and that in January no one could have imagined that three videoconferences or conference calls a day could become normal. He added that “even spontaneous short trips to other European countries over a long weekend will be significantly less for a while.”

The 22 German airports employ 180,000 people. Scheuer said that with significantly lower passenger volumes, he is very concerned that the preservation of this important infrastructure could be jeopardized. Only in terms of the three months of mandatory restrictions in Germany, airport operators are talking about losses of around 700 million euros in reserves, which are now lacking for investment, argued the German minister.

Source: dpa