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[BUSINESS] · Germany · 3 sources

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German airlines propose regional subsidies for domestic flights

The Federal Association of German Airlines (BDF) has proposed that regional governments and states provide subsidies for specific domestic flight connections. The association argues that high kerosene prices and significant state fees have made many flights to small and medium-sized airports economically unviable.

Without such financial support, the BDF warns that the connection between regional economic hubs and international hubs will continue to erode. The association cited recent challenges in cities such as Bremen, Dresden, Münster/Osnabrück, and Paderborn as evidence of this pressure.

The BDF suggests implementing 'Public Service Obligations' (PSO), a model already used for 165 routes within the European Union, particularly in France, Spain, Italy, and Greece, to support remote regions. While domestic flights face criticism due to their environmental impact, the industry notes that available seating on domestic routes has decreased by approximately half compared to pre-pandemic levels.

Entities

Bundesverband der Deutschen Fluggesellschaften · European Commission · Lufthansa