Federal Association of Germany blames new air regulation for the bankruptcy of Air Berlin

Published on : Friday, September 1, 2017

airberlinGerman trade-tourism body, Federal Association of Germany said that after allowing the foreign airlines to take the market share from German carriers, contributed the economic failure of Air Berlin.



Air Berlin, the second-largest airline company in Germany filed for the bankruptcy protection after the shareholder Etihad Airways withdrew funding following years of losses.



The conditions of the new taxation regulation are distorting the competition and allow the foreign competitors to whittle out an increasingly large part of passenger volume.



The Federal Association of Germany which represents the travel-related industries including tour operators, hotels and airlines, called on the German government to simplify the burden of costs such as Germany’s air travel tax, which was introduced in the year 2010.



Michael Frenzel, the President of the Federal Association of Germany said that the association had no interest in a national champion, after Economy Minister of Germany Brigitte Zypries said she would welcome it if Lufthansa took over substantial parts of Air Berlin.



The tourism in Germany annually generates around 290 billion euros which is accounting for around 3.9 percent of the economy. It is providing nearly 3 million jobs directly and indirectly.



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