Around twelve years after the grounding of the cargo airline Air Cargo Germany (ACG), the Braunschweig Regional Court has dismissed a lawsuit against the Federal Republic of Germany. The airline's insolvency administrator had accused the Federal Aviation Office (LBA) of contributing to the company's insolvency by revoking its operating license in 2013. The judges did not accept this argument and decided that the LBA's measure was lawful.
Air Cargo Germany was founded in 2008 and was based at Hahn Airport in the Hunsrück region. The company specialized in cargo flights with wide-body aircraft and most recently operated four Boeing 747 freighters. Despite an investment by the Russian logistics group Volga-Dnepr and financial support from Hahn Airport and the state of Rhineland-Palatinate, the company ran into financial difficulties.
In April 2013, the Federal Aviation Office withdrew the airline's operating license on the grounds that it was no longer economically viable. This prohibited ACG from continuing to operate commercial flights. A few weeks later, in May 2013, the airline filed for insolvency and in September all employees were laid off.
dispute over responsibility
In a state liability suit, the insolvency administrator demanded around 141 million euros in damages from the Federal Republic of Germany, represented by the Federal Aviation Office. In his opinion, ACG could have continued to operate without the withdrawal of the license.
The Braunschweig Regional Court did not agree with this interpretation. The judges stressed that the Federal Aviation Office is legally obliged to check the financial stability of airlines and to take appropriate measures in the event of significant doubts. The decision to withdraw the operating license was therefore not unlawful.
Significance of the ruling for the aviation industry
The case highlights the strict regulations that airlines in Germany and the European Union are subject to. Economic performance is a key criterion for obtaining an operating license. Authorities are obliged to regularly check the financial situation of airlines to ensure that they can meet their obligations to passengers, clients and employees.
The ruling confirms the scope of action and duties of the Federal Aviation Office and could serve as a precedent for similar cases. Since the insolvency administrator could still appeal against the ruling, it remains to be seen whether the case will go to the next instance.
Meanwhile, a successor company to the German cargo airline was not spared from economic pressure: Slovakia-based Air Cargo Global, which was considered a kind of successor to Air Cargo Germany, ceased operations in 2020 and filed for bankruptcy.
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