Says Foreign Competitors Drew Passengers From The German Carrier

A German trade association says that foreign competition made possible by high taxes and federal regulations contributed to the collapse of Air Berlin, which filed for bankruptcy in August.

Reuters reports that Michael Frenzel, president of the federal association of Germany's tourism sector, said that foreign airlines were able to siphon off market share from Air Berlin, contributing to its failure. Etihad Airways, a major shareholder in Air Berlin, withdrew its financial support after seeing years of losses.

“Conditions distorting competition allow foreign competitors to carve out an increasingly large part of passenger volume,” Frenzel said.

The association has called on the German government to cut the country's air travel tax, which was introduced in 2010, to help support German airlines. He also said that the association has "no interest" in a "national champion" to bail out the airline. Germany's Economy Minister Brigitte Zypries said recently that she would welcome the takeover of substantial parts of Air Berlin by Lufthansa.  “The days of big national carriers are over,” Frenzel said.

(Image from file)

FMI: www.germany.travel/en/germany/about-us/partners/associations/bundesverband-der-deutschen-tourismuswirtschaft-ev.html