EU Airlines Seek Protection of Competitiveness of Sector

Chief Executive Officers (CEOs) from 17 major European airlines have urged policymakers and member states in Europe to initiate steps to protect the competitiveness of the aviation sector in the region.

A new report by global consultancy firm Steer Economics, which was commissioned by Airlines for Europe (A4E), highlighted that regulatory costs for airlines have tripled over the past decade to $16.23 billion in 2024, which could have funded 300 next-generation, fuel-efficient aircraft.

Without urgent action, it is projected to reach $29.75 billion by 2030, which is a direct consequence of an incomplete EU single market, inefficient airspace management and escalating sustainability-related levies.

These costs have a direct impact on Europe’s economy. Studies show that every 10% increase in air connectivity translates to a 0.5% boost in GDP per capita and a 1.6% increase in jobs1. Despite this, policy in Europe is generating an ever-increasing cost burden that is harming Europe’s ability to connect people and compete globally, as well as its attractiveness as a place to do business.

The CEOs, who met with EU Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas, the CEOs listed measures critical for the competitiveness of the sector. The measures include, support needed in achieving transition to net zero by lowering Sustainable Aviation Fuel (SAF) costs and ensuring a fair carbon pricing system, Revise EU261 passenger rights to create clear, fair and balanced and cost-neutral regulations, prevent excessive aviation taxes that undermine competitiveness and reform air traffic management to reduce delays and emissions.

A4E Managing Director Ourania Georgoutsakou said that competitiveness is the word on everyone’s lips in Brussels and the CEOs have set out what that means for Europe’s airlines.

She also pointed out that the simple fact that Europe is becoming too expensive to do business and as a result passengers are switching to non-EU destinations, hubs and carriers.

“Flying is and will remain an essential element of how we in Europe remain connected to each other and to the world. It is critical to European integration and economic growth. The time for talking is over. Now is the time for decisive action and reform,” she added.

A4E’s New Chair

Benjamin Smith, CEO of Air France-KLM, assume the Chairmanship of A4E for 12 months during the summit, said that the aviation industry is determined to work with policymakers in order to come up with concrete solutions to increase the competitiveness of European airlines, create a level playing field with non-EU competitors and decarbonise our sector.

“These are all intertwined challenges, key to Europe’s sovereignty, that must be addressed collectively. Neglecting even one aspect will undermine the success of the others,” Smith added.