For the lobby organization Board of Airline Representatives in Germany (BARIG), the role of cargo in air transportation has long played only second or even third fiddle. This is likely to change soon. With Thilo Schäfer from Condor Cargo and Jorge Carretero from LATAM Cargo, two experts have joined the Air Cargo Committee of the association. The two managers will position air freight issues much more prominently on the organization’s schedule.
No sooner had they been appointed, than the trio demanded a U-turn in Germany’s aviation policy. Their claims in a nutshell: The air traffic decline in Germany needs to be stopped by setting aside bureaucratic hurdles and lower costs. This is stated by BARIG Chairman Michael, while pointing at the Berlin politicians. “In contrast to Europe or even worldwide, air traffic in Germany has still not fully recovered after the pandemic. The reason is obvious: Skyrocketing production costs for aviation in general, which also severely hamper cargo business. It is the upcoming German government’s responsibility to significantly and sustainably reduce cost pressure, consequently and fast. Otherwise, it will not be possible to bring Germany back to the top positions in Europe and globally, as an aviation and business location,” BARIG Chief Hoppe warned.
Unhealthy cost-structure
According to a recent report by the German Aerospace Center (DLR), local airport costs have risen by 39% across Europe since 2019, due to higher fees payable by airlines. Yet, in Germany, the increase is a whopping 70%!
Meanwhile, even the Lufthansa Group wants to grow primarily through its subsidiaries in Austria (AUA), Switzerland (Swiss) and Italy (ITA), and less through its core brand, Lufthansa Airlines. On the domestic market, the costs are too high due to taxes and fees, but also due to continuous strike action by unions, exclaimed Group CEO, Carsten Spohr in mid-MAR25, at his company’s annual press conference. Group subsidiary, Lufthansa Cargo, is similarly affected by the skyrocketing costs in its home market, apart from ticket taxes.
Thilo Schäfer, Director Cargo at leisure carrier, Condor, also demands Berlin politicians to take a U-turn: “Germany may continue being a key European hub for global air freight. However, this position has come under severe pressure. This makes it even more important to actively develop the framework conditions in Germany to strengthen its competitiveness in the European market. Together with the BARIG Air Cargo Committee, we want to drive forward future-oriented topics such as automation, digitalization, and the optimization of processes. Digitalization like IATA’s ONE Record initiative is key for transporting air cargo in time, in budget, and in quality. We need to digitalize our processes with all stakeholders involved – meaning airlines, airports, handling agents, and authorities.”
Strengthening hub performance
And LATAM Cargo’s Jorge Carretero adds to this: “Logistics and air freight in Germany are currently being confronted with many issues and challenges that will determine future developments. In order to create the best possible processes and framework conditions, we develop innovative and practicable solutions in the committee with the expertise of our international community. Our aim is to ensure an efficient, modern, and competitive air cargo infrastructure for Germany. It is important to have resilient supply chains. By exchanging knowledge and experiences – not just within our airline community, but also with the responsible airport departments and with innovative stakeholders from the cargo industry – we can strengthen and improve air cargo hub performances.”
New thinking is needed
Ultimately, the future German government coalition of Conservatives and Social Democrats needs to establish a new approach to aviation policy. The sector must no longer be seen as a dairy cow, but as an industry of paramount importance for imports and exports, the maintenance of supply chains, a guardian of air security and a provider of thousands of qualified jobs. Without this paradigm shift, the exodus of airlines will continue.
In a first step, the future coalition of Conservatives and Social Democrats has announced that it will reverse the increase in air traffic tax decided in 2024. In addition, the national blending quota is to be abolished. It stipulates a certain proportion of SAF in order to reduce CO2 emissions.
