Europe’s Airlines Face Setbacks From Wars and Red Tape, Urge EU Action
By Joanna Plucinska
Challenges and Calls for EU Support in the European Airline Industry
LONDON, May 20 (Reuters) - Europe's airlines are losing ground to global rivals and need stronger EU support to tackle rising regulatory costs, make sustainable jet fuel affordable and better manage crises, a lobby group representing the continent's main carriers said.
EU Aviation and Aeronautics Strategy
The European Union has asked for feedback on a new Aviation and Aeronautics Strategy, with the deadline for submissions set for Thursday as the sector struggles with the knock-on effects of the Iran war.
Impact of Global Events on European Airlines
"The COVID-19 pandemic, the closure of Russian airspace, the crisis in the Middle East, together with growing global protectionism have worsened the competitive disadvantage for EU carriers," Airlines for Europe (A4E) said in its submission to the EU seen by Reuters on Wednesday.
Lobbying for Reforms and Competitiveness
The group, which represents carriers including Ryanair, Air France-KLM and Lufthansa, has lobbied for reforming and limiting disruption around air traffic control in Europe, looser sustainability rules and help to make the sector more globally competitive.
Proposed Solutions and Sector Setbacks
Specifically, the group is calling on the EU to create a stronger crisis management framework and an aviation waiver which would allow obligations to be temporarily suspended or adjusted when complying with them is clearly impractical or counterproductive.
Effects of the Pandemic and Geopolitical Tensions
The airline sector was among the hardest hit during the COVID-19 pandemic and the widespread disruption to travel this year due to the U.S.-Israeli war with Iran.
Market Challenges and Non-EU Competition
The document also calls on the EU to "address the structural failure of the sustainable aviation fuel (SAF) market" and to deal with challenges with airspace congestion and loss of market share to non-EU carriers, such as Chinese and Middle East airlines.
(Reporting by Joanna Plucinska; Editing by Emelia Sithole-Matarise)
