Key messages presented: cost-control, innovation, striving for the right business model. Finding a role model – maybe.
In early April 2025 I attended the third Aviation Day of the University Worms, which brought together aviation leaders including Lufthansa, Ryanair, easyJet, TUI, Condor, and FraAlliance, in a small town south of Frankfurt to address the student audience of the University. University Worms is well known for its English-language programmes including programmes for air traffic management (ATM) and aviation. One specific offer is a combined programme of academic and initial air traffic controller education, exclusively in collaboration with DFS Deutsche Flugsicherung GmbH.
Given the lack of skilled staff in a world experiencing a declining workforce, this is an important asset for the aviation sector in Germany. It’s no surprise that senior leaders of the industry made their way an hour south of Frankfurt airport to attract future workforce talent for their companies and to discuss pressing challenges and new opportunities shaping today’s industry.
Economic Headwinds and Regulatory Burdens
The morning theme was “Managing Headwinds in Aviation” and the head of the German Aviation Association (BDL), Dr. Joachim Lang set the scene, presenting the economic challenges of the sector: regulatory costs in general, the constantly rising costs for air traffic control (ATC) despite all promises of the Single European Sky, unrealistic Sustainable Aviation Fuel (SAF) quotas and the resulting discrimination of European carriers. The messages well amplified the call for action of the A4E airlines at their executive summit a week earlier.
To expand the picture, KPMG’s Torben Kiemann offered insights on global consolidation trends and upcoming M&A opportunities, mapping out the regions with the highest market dynamics. Unsurprisingly, the Middle East and Asian markets emerged as central growth hubs in his analysis, providing the global context to the European challenges.
The German Paradox: Declining Capacity, Rising Costs
With a closer lens on Germany, it became clear that Europe’s biggest market is falling behind in comparison to other European countries, which has also led airlines such as Ryanair and easyJet to shift capacity abroad. The German aviation market is still in decline, with 86% capacity compared to pre-Covid 2019 level while Europe is back at 101% capacity. The costs are going in the opposite direction, for Germany a further increase of 1.2 billion Euros in regulatory costs in 2025 is anticipated:
- Air traffic tax: + 180 million euros
- Security fee: + 160 million euros
- ATC terminal charges: + 150 million euros
- ATC enroute charges: + 135 million euros
- Sustainable aviation fuel (SAF) blending ratio: + 400 million euros
- German power-to-liquid (PtL) quota fine: + 150 million euros
Leadership Insights and Industry Challenges
In his keynote, Peter Gerber, CEO of Condor, spoke on the journey of re-positioning Condor as a “bleisure brand”, the importance of customer satisfaction, cost control, smart partnerships and sustainability: “2.1 l / 100 km are achieved”. His reminder to the next generation was to deliver excellence as managers and as a company. easyJet’s Thomas Haagensen later summarised the recipe for success to the audience: “How to add value and increase the bottom line”.
For addressing change, all speakers raised ATM concerns. The common view was that politicians do not deliver the right regulatory framework. The increasing costs for ATC, while expecting capacity issues in summer 2025, were a common theme throughout the morning, with comments like “Forget about ATC”, and easyJet’s Thomas Haagensen echoing, “We have given up on the Single European Sky”.
Common opinion was that the political stakeholders do not understand the airlines’ business and its harsh competition. A good lesson for the talent of the future regarding technology: the sky is the limit; however, politics set the framework, and stakeholder management is a long-term game and often frustrating.
Innovation and The Digital Future
The afternoon theme was “Enhancing the Passenger Experience” and engaged the audience with the bright side of the industry, devoted to innovation and technology presented by Lufthansa, TUI, Ryanair, Travel-in-Motion and MSM.digital. New technologies such as the mixed-reality glasses “Meta Quest 3” VR headset, customer-centric onboard experiences and advanced airport concepts are benefiting the customers and enhancing sales processes – and increasing sales revenue.
All presentations focussed on how to exploit data and digitalisation and were a good sales pitch to attract the next generation to join a fancy, innovative aviation sector.
Takeaway 1: Keep costs under your close watch if you want to succeed in the highly competitive sector of aviation.
On the costs of ATC, all presenters had the same message: “we gave up on ATC costs”. However, to be fair, the costs for ATC are only a part of what’s driving the airline’s cost base. Airport charges, security charges, departure taxes plus regulatory burdens as SAF requirements and national levies are significant, and the national and European policy level needs to act if the European aviation sector is to remain globally competitive. In Brussels the requests have been well understood; whether the new German government will listen too, we will see.
Takeaway 2: Aviation is at the forefront of innovation and embracing digitalisation.
For the benefit of the customer – and to the benefit of the companies’ balance sheet. Ryanair’s Marcel Meyer cleverly charmed the audience to attract talent to his employer with the promise of working agile and fast implementation of ideas. This is a valid recipe for the whole industry.
Takeaway 3: The Diversity Gap in Aviation Leadership
Role modelling in the German aviation sector is only visible for male students – so far. Unfortunately, the faculty included almost no female speakers. This gave not only the very false impression that there are no accomplished women in leadership in German aviation but also missed serving the female student cohort with role models and inspiration for their own leadership journey.
Companies have to double down if they want to win the war for future talent and motivate all students that a career in aviation is worthwhile. A kind invitation to male panelists to google the outdated concept of all-male panels known as “manels”, to read our article on the need to attract diverse talent or to listen to the podcast on the global war for talents. And finally, I encourage University Worms to include role models for the full potential for their student cohort and the future workforce in Aviation Day 2026. Through this, their very good concept will become excellent.
