The upcoming collective bargaining negotiations in the public sector are causing unrest in the German aviation industry. The airport association ADV (Association of German Commercial Airports) is warning of the possible economic consequences of a high collective agreement for the country's struggling airports. At a time when many airports are still struggling with the financial impact of the Covid-19 pandemic, further wage increases could exceed the limits of many locations.
The economic situation of many German airports remains tense. According to ADV, only six out of 2023 airports were in the black in 23. Passenger numbers have not yet fully recovered from the pandemic-related slump. Measured against pre-crisis levels, air traffic in Germany is currently below 2013 levels.
In addition, there is increasing competitive pressure on German locations. Airlines are increasingly moving to alternative airports in neighboring countries due to high regulatory fees and taxes. This makes it difficult for German airports to offset rising operating costs by charging higher fees to airlines. ADV General Manager Ralph Beisel explains: "The options for offsetting the rapidly rising personnel costs by increasing airport fees are limited."
Personnel costs rise massively – airports come under pressure
The airport association points out that personnel costs have already risen by around 20 percent since the end of the pandemic. A further increase in wages by an average of eleven percent, as demanded by unions, could seriously endanger the economic stability of many locations.
"We are experiencing cost increases at almost all levels. So it is not a question of wanting to, but of being able to," stresses Beisel. In addition to increased personnel costs, airports are also struggling with higher energy prices, new security requirements and inflation. Without additional sources of income, many airports could be forced to limit their services or seek state support.
Appeal to negotiating partners – call for fair solutions
In view of the tense situation, the airport association is appealing to the collective bargaining parties to find a balanced solution. The Association of Municipal Employers' Associations (VKA), as representatives of the employers' side, and the trade unions are called upon to strive for a solution that takes into account both the interests of the employees and the economic framework conditions of the airports.
In addition, the ADV calls for a responsible approach to strike action in the event of failed negotiations. In particular, the association stresses the need for a minimum warning period of 48 hours before industrial action. "A minimum warning period is required out of respect for the traveler who finances air traffic with his tickets," says Beisel.
Outlook on the collective bargaining negotiations
The collective bargaining negotiations in the public sector are eagerly awaited as they affect not only the airports but also numerous other municipal institutions. If the unions get their demands through, the financial challenges for the airports could become even more severe.
It remains to be seen whether a compromise will be found. What is clear, however, is that the German aviation industry continues to face considerable economic uncertainty. The coming months could be crucial for how the financial situation of airports develops in the future.
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