Currently, revenue from the federal air passenger tax introduced in Germany in 2011 amounts to approximately €1 billion per year. The majority of countries in the EU impose only a low-rate ticket tax or none at all. Austria has halved its tax for example, and the Netherlands and Ireland have abolished it completely – with considerable effects on their national economies.
In a recent study, PricewaterhouseCoopers (PwC) simulated the positive effects that would be obtained by completely abolishing the air passenger duty in Germany. The key results are:
And the tax authorities would benefit too
The question remains as to what consequences this step would have on the federal budget. According to the PwC analyses, the loss of revenue from this tax would be more than compensated for by considerable increases in revenue in other areas, for example higher revenue from income tax, VAT and social security contributions. In concrete terms: in 2020, the abolishment of the air passenger tax would represent a loss of €1.19 billion, compared to additional revenue of €1.29 billion.
Thus, from an economic point of view, there are also very convincing arguments in favour of abolishing the air passenger tax. Last but not least, a significant burden would be lifted from airlines, enabling them to invest even more in environmentally-friendly and quieter aircraft. Indeed, the most effective approach to reducing fuel consumption and noise emissions is to invest in new aircraft technologies and continually modernise aircraft. Three particularly important areas here are propulsion, aerodynamics and weight. New ideas and materials enable fuel consumption to be reduced with each new aircraft generation. For example, the Airbus A320neo consumes 20% less fuel per seat compared to previous-generation aircraft.
The Airbus A350 XWB boasts 25% less fuel consumption than rival long-range aircraft. The industry has thus shown that it can contribute significantly to greater sustainability and energy efficiency in aviation: a win-win situation.
Status: Nov 2017
Commitment to the A380 programme again reaffirmed - Emirates' Chairman underlines the positive effect of Emirates' A380 operations on aerospace manufacturing, the aviation industry and customer experience.
HAMBURG/DUBAI, Nov. 3, 2017 – Emirates receives its 100th A380: On Friday, at a festive ceremony with His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Emirates Airline & Group Chairman and Chief Executive, Sir Tim Clark, Emirates Airline President; Dr. Thomas Enders, Airbus Chief Executive Officer; Dominic Horwood, Director of Customer and Services at Rolls-Royce; His Excellency Ali Al Ahmed, UAE Ambassador to Germany and Frank Horch, Senator for Economy, Transport and Innovation of the Free and Hanseatic City of Hamburg, celebrated the milestone along with invited VIP guests, industry partners and media representatives at the aircraft manufacturer's Hamburg site.
“We are extremely proud of our long-standing relationship with Emirates – a partnership that has been integral to the A380 programme. It is a source of immense satisfaction for everyone at Airbus that such a visionary airline has believed in the A380 from the beginning and chosen it as its flagship and the backbone of its fleet. And, of course, it is always exciting to hear positive feedback from our customers and passengers about the aircraft, while associating it with Dubai’s success as the world’s most dynamic air transport hub,” said Dr. Thomas Enders, Chief Executive Officer of Airbus.
“We would like to congratulate Emirates on this momentous occasion. We are very proud to be powering their 100th Airbus A380 and look forward to building on our strong relationship in years to come,” commented Dominic Horwood.
Powered by Rolls-Royce engines, Emirates’ 100th A380 is configured in three cabin classes, with 14 private suites in first class, 76 seats in business and 426 seats in economy. It also features the airline’s newly revamped onboard lounge. It will be on display at the upcoming Dubai Air Show and will fly its first scheduled service, to Mauritius, on November 18, 2017.
Year of Zayed tribute
Adding to the celebrations in Hamburg, Emirates unveiled a special tribute to the late HH Sheikh Zayed bin Sultan Al Nahyan. The founding father of the United Arab Emirates (UAE) is portrayed in a bespoke livery on Emirates’ 100th A380.
Sheikh Ahmed stated: “2018 is the “Year of Zayed”, marking 100 years since the birth of our country’s founding father and celebrating his legacy. Emirates is proud to launch our tribute to the man who has been instrumental to the UAE’s formation and development, at the milestone delivery of our 100th A380. Just as the A380 has broken new ground in so many regards, Sheikh Zayed was a true pioneer and visionary. Bringing his message of inspiration, daring and determination to the world as we fly the A380 around the globe, is an apt way to celebrate his amazing legacy.”
Positive impact on aerospace and aviation
The Emirates A380 programme creates and supports manufacturing jobs across the global aircraft manufacturing supply chain. Airbus estimates that Emirates’ A380 orders alone support 41,000 direct, indirect and induced jobs in Europe, including some 14,000 in Germany alone. These are high-skilled jobs and impact a high-value supply chain, creating a significant multiplier effect in the countries where Airbus has aircraft production facilities.
The estimated Europe-wide impact of Emirates’ A380 investment amounts to €3.4 billion in GDP in 2013-14. In Germany and France, the GDP impact is €1.2 billion for each of the countries.*
In April 2015, Emirates signed a historic €8.7 billion deal with Rolls-Royce for Trent 900 engines and a long-term total care package. The engines will power 50 Airbus A380s, which entered service in 2016. The deal, which is the largest ever for Rolls-Royce and one of the largest ever export orders for a UK-based company, is part of Emirates’ ongoing investment in the UK and Europe.
Setting new standards for flying experience
The introduction of Emirates’ first A380 in 2008 set new standards for customer experience, introducing many industry firsts, including the onboard lounge, shower spas, free Wi-Fi and advanced in-flight entertainment systems in all classes. Emirates continually invests to enhance its A380 product, ensuring its customers enjoy the best possible experience. To date, over 85 million passengers have flown on the Emirates A380 fleet. The airline has implemented countless improvements on board its A380 fleet since 2008, ranging from subtle updates such as the addition of in-seat USB ports and the introduction of electric window blinds, to more major upgrades, such as relocating overhead luggage bins to provide a more spacious cabin, installing bigger and better in-flight entertainment systems and a newly revamped onboard lounge.
Emirates’ A380 operations
Emirates is the world’s largest operator of the A380 aircraft, flying this iconic double-decked jet to 48 cities on six continents on scheduled services. Including one-off flights, special commemorative services, test flights and other operational deployments, over 70 airports to date have welcomed the Emirates A380. The airline receives on average 11 A380 deliveries per year. In the 2016-17 financial year, Emirates received 19 new A380 aircraft – more than in any previous financial year. In Dubai, Emirates operates the world’s largest A380 hub with an entire purpose-built exclusive A380 terminal. In total, €3.3 billion were invested to offer travellers unprecedented comfort and amenities, including duty free shops, spas, restaurants and more. The first class and business class lounges are the largest in the world and offer direct boarding from the lounge. Emirates has 1,500 pilots and over 23,000 cabin crew specially trained to operate its A380 fleet.
* According to a Frontier Economics analysis carried out in 2015.
Source: Emirates Airlines
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Status: Nov 2017
Around the world, more new frontiers are being drawn and protectionism is gaining ground. Europe’s aerospace group is moving in the opposite direction. The best example is the recent alliance with Canadian aircraft manufacturer Bombardier.
Convincing aircraft, promising market
Airbus is acquiring a 50.01% stake in the C Series aircraft programme from Bombardier. The agreement should be finalised in the second half of 2018. This transatlantic partnership holds enormous potential for both parties: with its A320 family, Airbus offers aircraft starting from 150 seats. In contrast, the Bombardier C Series, which have been officially renamed the A220 Family in July 2018, seats 100 to 150 passengers, making the programme an ideal addition to Airbus’ product range. At the same time, Bombardier gains access to Airbus’ global sales and maintenance network. For aircraft of this size, global demand is expected to reach 6,000 aircraft in the next 20 years. Until now, the limited possibilities of the Canadian manufacturer have prevented what is technically-speaking a first-class aircraft from being a commercial success. The project end was looming, and development costs reaching into the billions would have been irretrievably lost.
And the winners are: Europe and Canada
It is generally unknown in this country that 4,800 Bombardier employees work on the A220 Family in Belfast in Northern Ireland. In this economically underdeveloped region, the Canadians are the largest industrial employer. Thanks to the involvement of Airbus, these jobs can now be secured in the long term. This is also true for suppliers based in Germany. And not only Europe, but Canada benefits too: the A220 Family headquarters will remain in Quebec, as will 2,000 jobs, and the Quebec aerospace cluster will be durably strengthened.
No other sector in Germany has as much innovative strength and pioneering spirit as aerospace. Industrial aerospace companies spend 11 percent of their revenue on research and development (R&D). This is the top figure by a long way: the electronics, automotive and mechanical engineering industries all lag far behind, at 5 to 7 percent. And at the same time, all around the globe, aviation is an Eldorado for start-ups. It is no accident that the Federal Ministry for Economic Affairs and Energy chose aerospace to launch its series of “StartUp Night!” events two years ago. The centre of gravity of this German innovation industry is Airbus.
Airbus operates at 27 sites in 13 of the 16 federal states. Here are some key figures on the company’s home location, Germany:
Employees: Since the year 2000, the number of Airbus employees at German sites has increased by 30 percent to 47,000. This means that the Group employs close to half of the 108,000 employees in the German aerospace industry. With highly skilled employees accounting for almost 30 percent of the total workforce, the sector takes top position in Germany. On average, the proportion of academics is only around 11 percent.
Suppliers: Airbus’ global order book is growing. This sustains German suppliers such as Premium AEROTEC, with its 10,000 employers. As Airbus partners, suppliers contribute up to 80 percent added value depending on the aircraft model. In total, Airbus works with close to 11,000 external partners in Germany and buys goods and services representing a value of just over €5 billion per year in this country.
R&D: In 2016, Airbus spent €3 billion on research and development. Compared to the year 2000, this amount has more than doubled. Environmentally-friendly technologies such as alternative propulsion systems, lightweight engineering and 3D printing are at the heart of this. In this respect, Airbus cooperates closely with partners in research and SMEs. This broad approach also benefits Germany as an aerospace location overall. The key R&D sites are the Ludwig Bölkow Campus in Ottobrunn, the Center of Applied Aeronautical Research in Hamburg (ZAL) and the CFK Valley carbon-fibre reinforced plastics network in Stade.
Start-ups: Airbus extensively promotes innovation beyond the Group's borders. The merging with the start-up scene already present in Germany is a strategic focus. Consequently, in Hamburg, Airbus operates one of the three BizLabs set up around the globe: here, entrepreneurs receive advice from experts and support for market entry and prototyping.
Together with France, Great Britain and Spain, Germany is the home of Airbus. 90 percent of the approximately 134,000 people it employs worldwide work here. However, in 2016, only 12 percent of orders came from the four Airbus home countries. Airbus’ goal is to tap into the important growth markets in Asia and America more than ever, and thus ensure employment in the home countries. The keys to this are: internationalisation, proximity to the customer and digitisation.
Airbus sites and products
Employees per business area:
Stand: Dez 2017