German States Advocate for Aviation Tax Reductions
BERLIN (Reuters) - Germany's new government must ease the financial burden on aviation to ensure the industry remains competitive, federal state leaders said on Thursday, calling for steep cuts in taxes and charges as a priority.
While most other European markets have overcome the crises of recent years and achieved new records in recent months, high location costs mean Germany lags other markets in Europe in terms of passenger numbers, German airport operator Fraport said last month.
"An international hub like Germany can no longer afford state-imposed competitive disadvantages," said Hesse's state chief Boris Rhein, after a meeting with leaders of Germany's 16 states.
"The high taxes and fees and the exorbitantly high level of regulation across Europe mean that more and more companies and individuals increasingly avoid German airports."
Ryanair in August cut 20% of its traffic at Berlin-Brandenburg airport, making good on threats to reduce its presence in the German capital due to some of the highest location charges in Europe.
Germans are expected to elect a new government in elections on Feb. 23.
(Reporting by Kirsti Knolle; Editing by Alexandra Hudson)
