One year after Mario Draghi shared his stark evaluation and bold recommendations on the future of EU competitiveness, one thing is clear about the state of the European Union: the pace of reform must accelerate.

European passengers face higher regulatory costs at home than in other parts of the world. This regulatory burden and cost has a direct impact on the competitiveness of European airlines, and the competitiveness of Europe – people still fly, but increasingly to destinations or via hubs outside Europe.

For A4E member airlines (representing 80% of European air traffic), the cost of doing business in Europe has tripled over the last decade to €15.5 billion per year (the equivalent of 300 new aircraft). Without immediate action, this cost will further soar to €27.5 billion per year by 2030.

EU and national governments must act now to:

1. Manage the transition to net zero. Draghi stated that for hard-to-abate sectors, decarbonisation is a competitive disadvantage, estimating costs for European aviation at €61 billion per year between 2031- 2050. Access to affordable SAF and maintaining Europe’s technology lead in aircraft and air traffic management technology is a question of strategic autonomy for Europe. There is a growing consensus among SAF actors that mandates alone cannot deliver a functioning competitive market. Europe needs tools to incentivise investments in SAF production and support SAF uptake. The Sustainable Transport Investment Plan (STIP) due later this autumn is expected to outline solutions, but it is essential that new mechanisms are already in place by 2026.

2. Reform airspace. This summer 110 million passengers were affected by a total of      of 24 years’ worth  of delays, and things could have been worse without clement weather and the changes introduced by some Air Navigation Service Providers. National governments must accelerate the recruitment of air traffic controllers and the deployment of new technologies. The full cost is already covered by the ATC charges that airlines pay.

3. Update the EU Aviation Strategy. The world has changed significantly since 2015, when the strategy was published. With several aviation-related laws under review over the next few years, the EU needs to update its Aviation Strategy to point its compass towards competitiveness and level the playing field for airlines, both in Europe and globally.

Europe can no longer afford to fall behind in an era marked by growing geopolitical and economic uncertainty. We need bold and swift action by national governments and EU institutions to remain competitive and connected to each other and the world.

ENDS