Missing Out on Air Freight Growth: Germany's High Costs and Intense Competition Stifle Business
Battling the Steep Descent: A Struggle Against Decline
Just like Hahn Airport's success back in '99 with budget carrier Ryanair, Liege Airport in Belgium is now enticing customers, this time in the freight sector, with low prices. Ryanair shook up Germany's flying scene with cheap flights, whereas Liege Airport's business practices are currently snubbing Germany's cargo business growth. "Germany's global air freight growth is evading us," asserts Joachim Lang, the head of the German Aviation Association (BDL).
Air Cargo Growth Hurdles in Germany
Several factors are barring Germany's air cargo growth, including operational challenges and regulatory obstacles:
- Rising Ground Costs and Red Tape: Germany's airports, particularly Frankfurt, are grappling with soaring ground costs and excessive red tape. These factors drive up operational expenses and slow down handling procedures compared to nearby nations, making them less attractive competitors.
- Structural Inefficiencies and Delays: The German Aviation Association (BDL) points out structural inefficiencies and delays in regulations as significant issues. These inefficiencies undermine Germany's standing in the air cargo industry, encouraging the preference for other European hubs.
- Shifting Cargo Traffic: Cargo traffic is migrating towards neighboring countries offering lower costs and quicker handling times. This trend is adversely affecting German airports like Frankfurt and Cologne/Bonn.
Liège Airport: A Key European Air Cargo Hub
Although there's no direct connection in the sources provided, Liège Airport holds a significant position within Europe's air cargo sector. Known for its efficient operations and lower costs compared to many German airports, it might be contributing to Germany's air cargo sector difficulties, although the exact impact isn't explicitly stated in the resources.
Global Air Cargo Trends
The air cargo sector worldwide faces challenges, such as a supply-demand mismatch and shifting route dynamics. Air cargo market growth is projected to be sluggish in 2025, with an anticipated 0.7% increase after a powerful 11.3% expansion in 2024. The Red Sea disturbances have also influenced air cargo demand, but this influence is projected to reach a plateau. These trends might further impact Germany's air cargo competitiveness as shippers seek out more efficient and affordable options.
Despite Liège Airport's growing appeal in the freight sector with lower costs, its business practices may be hampering Germany's air cargo growth, as indicated by the German Aviation Association (BDL). The rising ground costs, excessive red tape, and structural inefficiencies in Germany's airports, coupled with shifting cargo traffic towards lower-cost European hubs, contribute to a less competitive landscape for air cargo in Germany.
