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Supervisory Institutions and Framework Conditions

In: Air Transport and its Subsidies

Author

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  • Friedrich Thießen

    (TU Chemnitz)

Abstract

The German Air Traffic Control (DFS) makes decisions that have an impact on the costs of the aviation industry, the environmental damage caused by it and the federal budget. The DFS has improved corporate governance structures. There is a too close intertwining of interests with the aviation industry. The DFS has made decisions that favor the aviation industry. The German Air Traffic Control is used by the federal government as a subsidy intermediary to subsidize airports and airlines. Planning security is an important asset of a functioning economy. The aviation industry is calling for planning security for long-term investments in airports and aircraft. The residents of airports are calling for planning security for investments in real estate and social contacts. By assigning a high weight to the change interests of transport companies, the state reduces the planning security of the residents. In parallel, he regulates their compensation claims if transport companies grow to their disadvantage at a low level. One can certainly grant one party more planning security and more change rights than another. But for that there must also be adequate compensation obligations. The current situation represents a subsidy of the aviation industry. Air traffic agreements are contracts that regulate air traffic between states. The air traffic concept drawn up by the Ministry of Transport provides for the use of air traffic agreements to subsidize German airports and airlines. This is achieved by hindering foreign competitors by means of air traffic agreements. The federal government sees this hindrance as a “strengthening of the air traffic location Germany”. Whether the hindrance of foreign companies is also in the interest of travelers has not been checked.

Suggested Citation

  • Friedrich Thießen, 2022. "Supervisory Institutions and Framework Conditions," Springer Books, in: Air Transport and its Subsidies, chapter 0, pages 79-109, Springer.
  • Handle: RePEc:spr:sprchp:978-3-658-38899-7_6
    DOI: 10.1007/978-3-658-38899-7_6
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