States subsidize airlines in various ways.

    Ongoing subsidies for operations are, for example, in the form of “marketing subsidies”, reductions in airport fees or ticket subsidies for transported passengers.

    Other forms of subsidies may be in equity contributions, bridge loans and guarantees.

    Even debt relief through insolvency proceedings can have a subsidy character. The debtor reorganization procedure according to Chap. 11 of US insolvency law is often mentioned. US airlines have relieved themselves of their debts several times in this way. It is seen as a distortion of competition to the detriment of better-performing airlines.

    Aircraft noise is a side effect of air and ground movements that has negative effects on the health and well-being of people.

    The protection of people from aircraft noise is inadequate. On the one hand, the legally prescribed limit values ​​exceed the WHO recommendations. On the other hand, compensation does not correspond to the market value of the damage. Third, protection measures such as settlement restrictions are not adequately enforced.

    Such inadequate regulation represents a subsidy of the aviation industry by the state.

    Market-distorting monetary benefits arise for air transport companies from the omission of protection.

    Delays are a common phenomenon in air traffic.

    The most important causes were found to be unrealistic flight schedules, too few resources (aircraft, maintenance, crews) and too dense slots at airports.

    Compensations of the travellers for delays do not cover their costs.

    Delays in the evening and night hours burden airport neighbours because they are not compensated adequately for night-time disturbances.

    By not taking more effective action against delays, legislators and the German Air Traffic Control enable systematic delay strategies.

    Private companies are favoured at the expense of travellers and the general public.


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    Title :

    Airlines


    Contributors:

    Published in:

    Air Transport and its Subsidies ; Chapter : 4 ; 51-70


    Publication date :

    2022-08-27


    Size :

    20 pages




    Type of media :

    Article/Chapter (Book)


    Type of material :

    Electronic Resource


    Language :

    English




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