Especially from Germany, Corendon believed that it would have to expand massively in the 2022 summer flight schedule. Most of the growth, which has meanwhile been reduced, was achieved with wet lease aircraft. At times, the number of machines rented including crews was even larger than the company's own fleet. But now you have a serious problem, because due to the non-payment of the German air traffic tax, Corendon Airlines and the Maltese subsidiary Corendon Europe were seized by the main customs office in Giessen. It is about six million euros that the Turkish group owes the German state.

Last year, Corendon launched one new route after the other together with the Malta offshoot Corendon Europe. People were in a real gold rush mood, as they assumed that the holiday demand would be so high that, subjectively, they would have to fly from every "milk jug". The project, which even included an Airbus A330 rented from Airhub Airlines, didn't count at all. Many routes were discontinued after a few rounds or were not included at all. The Corendon Group itself operates comparatively few aircraft. Therefore, machines and crews have been rented from numerous operators. This resulted in higher costs, because logically the subcontractor also wants to make money. The difference: While the ACMI partner receives a fixed fee per block hour, regardless of the number of passengers transported, Corendon Airlines, as the bearer of the economic risk, depends on the ticket income.

Hasty expansion with many wet lease aircraft

And therein lay the problem that led to the financial difficulties of the group of companies. The demand was simply misjudged or routes were offered from airports for which there was little or no demand. Since Corendon traditionally cooperates with tour operators, it was not so easy to stop the routes immediately, otherwise hefty contractual penalties would have been due. In this way, the money was literally "burned" instead of earning a cushion for the 2022/23 winter flight schedule. This resulted in the rather thin winter flight plan. In the summer of 2023, the Corendon flight offer will also only be on the back burner and there is a good reason for this: the carrier is severely hit financially. In a cover letter from a tour operator, this is described as being in the process of restructuring, but no further details are given.

The Federal Republic of Germany has been levying the so-called aviation tax for many years. This was controversial from the start, because the income is not earmarked for investments in the transport sector, but flows into the general federal budget. Airlines have to pay this tax, which is calculated per passenger, to the tax office. Normally, this is added to the pure flight price and then forwarded to the tax authorities by the airline. However, the tax debtor is not the passenger, but the airline. In theory, it is possible to sell flight tickets without having to pay an air traffic tax. For example, Ryanair and Wizz Air do not explicitly identify them. But that doesn't change the fact that the airline has to pay for it in any case. The law states that the provider is liable for the tax and it is up to the airline to decide whether it pays the air traffic tax out of its own pocket or from the passenger. Since there is a lot of money at stake over the course of the year, this is always passed on or is simply “priced into” in the final price.

Around six million euros in open air traffic tax

Apparently, Corendon Europe and Corendon Airlines did not take it particularly seriously when it came to paying the tax liability for the aviation tax. Despite repeated requests from the German tax authorities, no money flowed. They then resorted to the hard means of foreclosure and the German tax authorities found it useful that both carriers have numerous customers from the tour operator sector. So you didn't have to put leasing aircraft on the chain pointlessly, but those tour operators to whom the garnishment orders were served are no longer allowed to pay to the two airlines, but have to transfer the monies seized to the main customs office in Giessen.

The portal CH-Aviation.com reports, among other things, that the amount of the outstanding air traffic tax that Corendon Europe and Corendon Airlines have accumulated is said to be around six million euros. This is based on existing attachment orders that were issued to German tour operators in December 2022. These are no longer allowed to pay claims of the two airlines directly to the two airlines up to the amount specified in the respective enforcement order, but must transfer them to the main customs office in Giessen. The sum then goes to the German state and is deducted from the tax liability.

Corendon claims measures are being lifted

CH-Aviation.com also quotes from a letter of apology that was sent to Corendon's major customers. In this one assures, among other things, that for several months they have been "properly and continuously paying due invoices" and that they are in contact with the German authorities. It is also claimed that the "provisional enforcement measures" have already been lifted. In the further course, there is talk of the fact that the year 2022 would have been difficult for the entire industry, that one is in the process of restructuring and that direct payments to the two airlines are temporarily prohibited. The Corendon employee also claims that other airlines would also be affected by attachments relating to the air traffic tax. But no specific names are given.

"Such measures are not uncommon or unknown in the industry and Corendon Airlines has not been and will not be the only airline to face this," Corendon's representative told CH-Aviation.com. He further claims that "temporary enforcement measures by individual authorities have already been lifted or are in the process of being lifted".

When it comes to finding the cause, however, one is not very self-critical. It is not the hasty expansion that is cited as the reason for the obvious financial difficulties, but fluctuating demand, a lack of staff at airports, the war in Ukraine and the consequences of the corona pandemic. Increased fuel prices and the earthquake in Turkey are said to have had a negative impact. The Turkish company does not say a word about the fact that the route network had to be completely razed.