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Langen, 11 February 2004 German Air Transport Initiative presented in Bundestag Air transport industry in Germany suffers drawbacks worth billions The German Air Transport Initiative was presented today to the Transport Commission of the German Bundestag by its four initiators – Dr. Wilhelm Bender (Fraport Chairman), Wolfgang Mayrhuber (Lufthansa CEO), Dieter Kaden (DFS CEO) and Dr. Michael Kerkloh (Munich Airport CEO). Under the auspices of the Minister of Transport, Dr. Manfred Stolpe, the joint project was launched in summer 2003 and paves the way for changes in the air transport market in Germany. The common objective is to eliminate distortions of competition on both a European and international level, as well as between competing modes of transport. Around one hundred key issues concerning infrastructure, safety and security – as well as framework conditions and competition – are covered by the initiative. Comparisons with other countries show that the financial burden is not shared equally. For example, in Europe only German and Dutch airlines have to pay the full tax rate for domestic flights. Spanish and French airlines pay only half the rate, while domestic flights in the UK are exempt from tax. Overall, this constitutes a competitive disadvantage amounting to €170 million annually. Security costs represent a further example of competitive disadvantage. After the attacks of 11 September, security expenses in Germany rocketed. Within three years, security costs increased by 100%, which – given the same number of passengers – is equivalent to €155 million. Added to this are higher insurance costs. Airlines and airports bear all of the costs in Germany, whereas in other European countries and – particularly in the US – war and terror-related insurance costs are fully subsidised by the State. This comes to a total of €90 million every year. Employing additional security staff as prescribed by the pertinent EU regulations amounts to €3.2 million at Munich Airport alone each year. Covering the costs to protect citizens against such threats should, however, be a State task. In Germany, different game rules apply to the different modes of transport – rail, road, water and air. One example is transport costs, where infrastructure measures such as road and railway station construction are financed today by taxes. By contrast, the air transport industry not only has to finance airport construction and operations, but also the provision of air navigation services. Not only are the rules of the game different – some of them are also out of date. For instance, an architect designing a building will automatically receive three per cent more if the customer is DFS as opposed to a private customer. Even though it operates under private law, DFS has to comply with the same low tender levels as other public sector organisations. Unlike in other European countries, the German air navigation services organisation is obliged to perform certain services at certain airports. For example, DFS must equip and operate the airports Erfurt and Saarbrücken in the same way as large international airports. That sends the costs soaring for DFS and, in turn, for the airlines. A further example is the complexity of lengthy approval processes for building or expanding an airport, giving rise to extremely high costs. For instance, it took around 30 years before Munich Airport was finally opened in 1992. In Frankfurt alone, legal costs for the expansion of the airport are calculated at around €25 million. Added to this are lost profits and the inefficient use of the site. It is even estimated that both Fraport and Lufthansa are missing out on €650 million for every year that the expansion of Frankfurt Airport is delayed. In contrast, a swift expansion of Frankfurt Airport would create 100,000 new jobs, as predicted by all known reports on the subject. Operating an additional Lufthansa aircraft generates 300 jobs in the air transport industry. Moreover, the German Air Transport Initiative supports the future-oriented integration of systems used by the air navigation services, airports and airlines. The improved cooperation could serve as a model for the international air transport industry and allow Germany to gain a leading edge with its systems. Compared with other modes of transport, air transport is environmentally friendly. Applying state-of-the-art technologies permanently reduces noise and engine emissions. In addition, the use of land is minimal compared to the land used for road and rail. At the beginning of April, the initiative will submit proposals for solutions to the Minister of Transport. These proposals should then be implemented step by step. Contacts: DFS Deutsche Flugsicherung GmbH Corporate Communications Ulrich Manz / Axel Raab, Tel. +49 6103 707-4111 FMG Flughafen München GmbH Corporate Communications Hans-Joachim Bues /Ingo Anspach, Tel. +49 89 975-41100 Fraport AG Press and Publications, Tel. +49 69 690-70555 Deutsche Lufthansa AG Corporate Communications Thomas Ellerbeck, Tel. +49 69 696-2999 DFS Deutsche Flugsicherung GmbH is a State-owned company under private law and has 5,200 employees. DFS ensures the safe and punctual handling of flights. Staff coordinate around 10,000 aircraft movements in German airspace every day, and more than three million movements every year. With this large number of flights, Germany has the highest traffic volume in Europe. DFS operates control centres in Langen, Bremen, Karlsruhe and Munich. In addition, DFS is represented in the Eurocontrol Centre in Maastricht, the Netherlands, and in the control towers of the 16 international German airports. DFS provides training and consultancy services around the world and develops and sells air traffic control, surveillance and navigation systems. The company's portfolio also comprises flight-relevant data, aeronautical publications and aeronautical information services. DFS has the following business units: Control Centre, Tower, Aeronautical Solutions and Aeronautical Information Management.
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