Status of the Austrian aviation industry and recommendations of AIA for the Austrian legislative period 2024 – 2029

The aviation industry in Austria, a central hub in Europe, has seen significant developments in recent years, driven by advancements in technology, evolving regulatory frameworks, and the increasing need for sustainable practices. This article delves into the latest trends and legal developments shaping Austrian aviation, highlighting how these changes are influencing the industry’s future.

1. Importance of the air transport industry for Austria’s economy

The Austrian Aviation Association (“AIA”) represents over 100 member companies, associations and universities from all over Austria, over 100,000 highly qualified jobs (around 29,000 direct, 20,000 indirect, 56,000 induced employees), around EUR 8 billion (over 2%) direct contribution to GDP, more than EUR 6 billion turnover, EUR 2.1 billion largely direct tax revenue, the Austrian aviation industry is among the 10 largest supplier nations for Airbus worldwide.

However, the overall economic significance of air transport goes far beyond these figures. Almost EUR 20 billion in spending by foreign tourists in Austria, EUR 171 billion in foreign direct investments in Austria and EUR 207 billion in exports would hardly be possible, or at least only to a much lesser extent, without air transport.

It is the clear mission of the Aviation Umbrella Organisation to strengthen Austria as a business location and its global competitiveness by maintaining and increasing the innovative strength of the Austrian aviation industry through targeted research funding and promoting Austria as a business location in general through aviation connectivity. The connectivity required by all sides can only be achieved with a functioning air transport hub in Vienna, demand-orientated connections to the federal provinces and a sensible addition of business aviation activities. This will not only secure qualified jobs in air transport, but in all sectors of the economy, so that prosperity in Austria is maintained.

2. Sustainable Aviation and Environmental Regulations

One of the most prominent trends in Austrian aviation is the push towards sustainability. This aligns with the European Union’s ambitious targets for reducing carbon emissions. The EU Green Deal and the European Climate Law, which aims to make Europe the first climate-neutral continent by 2050, heavily influence Austria’s aviation policies.

3. Digitalisation and Innovation in Air Traffic Management

The integration of digital technologies into air traffic management (ATM) is transforming Austrian aviation. These advancements aim to enhance efficiency, safety, and reduce environmental impact.

Austrian stakeholders participating in SESAR and Single European Sky (SES) are as a whole convinced that SESAR is the most important European research initiative for air traffic management, and essential for the successful implementation of SES. During the SESAR 1 and SESAR 2020 programme execution, stakeholders met regularly and exchanged relevant information in order to both understand, align and find synergies between European and Austrian ATM research activities. Following the establishment of the SESAR 3 JU States Representatives Group (SRG), Austrian stakeholders agreed to set up a more formalised SESAR networking initiative coordinated through the Innovation and Transport Directorates General of the Federal Ministry for Climate Action.

The Austrian SESAR Networking Initiative is designed as an open platform for all Austrian public and private organisations engaged in SESAR. Participants include those responsible for research and innovation at the ministry and from the Directorate for Aviation (also members of the Single Sky Committee), as well as all Austrian founding members of the SESAR 3 JU, namely Austro Control, EasyJet Europe, Frequentis AG. The Austrian Research Promotion Agency alongside other research and private organisations interested in SESAR, complete the group of participants in this networking initiative.

The agenda of those participating is to openly and transparently share SESAR-related information, focusing on alignment between European and Austrian aviation research and innovation agendas. The hope is to prevent duplication of research activities and ensure research projects are cohesive. Ultimately, stakeholders create a better and joint understanding of administrative, governance, and process topics related to the SESAR 3 JU’s Digital European Sky research and innovation programme. Topics shared include information about in-kind contributions to additional activities (IKAA) and best practices in project execution. Furthermore, members’ changing priorities in the SESAR 3 JU’s multi-annual work programme are addressed within the initiative.

4. Expansion of Air Connectivity and Infrastructure Development

Austria’s strategic location in Europe makes it a key player in enhancing air connectivity. Significant investments are being made in airport infrastructure and the expansion of air routes.

Vienna International Airport, Austria’s largest, is undergoing extensive expansion to accommodate increasing passenger traffic and larger aircraft. The expansion includes the development of new terminals, runways, and state-of-the-art facilities.

Legal frameworks governing these developments ensure compliance with environmental impact assessments (EIA) and local zoning laws. Public consultations and stakeholder engagement are integral parts of the approval process.

5. Recommendations of the Austrian aviation industry – AIA – for the Austrian legislative period 2024 – 2029

Air transport and the aviation supply industry are key prerequisites for a prosperous economy and a catalyst for innovation and technology leadership, but according to AIA aviation needs: avoidance of competition-distorting measures and “gold plating” of EU regulations, broad social and political recognition of the economic importance of scheduled, demand and cargo air traffic as well as business jet operations, and a significant increase in research funding for the domestic aviation industry, because in hardly any other economic sector does a euro of funding generate such a high return as in aviation; furthermore, appropriate resources from the transformation fund to make the industry fit for the future, also in terms of the challenges in relation to climate protection. Consequently, aviation needs more political support in Austria in the future in the following areas:

Strengthening the aviation centre:

– Strengthening the hub function of Vienna Airport, its hub carrier Austrian Airlines and the regional economic importance of the provincial airports by ensuring their connectivity.

– Supporting air freight in terms of its overall economic importance for the location and Austria’s resilience through practical further development of the physical transport infrastructure and legal framework conditions, reduction of regulatory hurdles, promotion of measures that reduce the costs or time required for air freight (e.g.

optimised customs procedures with sufficient personnel, digitalisation of processes, documents and interfaces, international cooperation, etc.).

– No restriction of business aviation as a key factor for Austria as a business location and for regional development.

– Creating the conditions for successful intermodality by rail and bus by using funds for the expansion of the railway infrastructure.

– Competitive organisation of the paraffin stockpiling obligation

– Prioritisation of unbureaucratic access to funding for research and pilot plants for the development of competitive lightweight construction solutions for aviation.

– Full utilisation of support for the aviation supply industry in accordance with state aid legislation in order to create a level playing field with other countries.

– Commitment to a significant increase in research funding for domestic aviation.

Specialised personnel:

– Participation in the costs of pilot training by the public sector.

– Expansion and extension of endowed professorships in the field of aviation technology.

– Prioritising the training of specialists in aviation technology and creating suitable training facilities and research infrastructure for this purpose.

– Creation of a national legal framework for a mandatory technology share / industrial cooperation in the procurement of goods for national defence.

– Demanding a mandatory share of technology / industrial cooperation in the procurement of goods for national defence.

Avoidance of further multiple burdens on air traffic:

– Promotion of already established international and European emission reduction regimes, such as CORSIA, instead of multiple burdens and competition-distorting solo efforts in tax matters, which only lead to evasive traffic and additional CO2 emissions.

Strengthening innovative strength in competition:

– Significant increase in research funding for domestic air transport and at least 2.2% (corresponding to the GDP share of air transport) from the transformation fund.

– Focused promotion of the development of lighter aircraft and eVTOLs, as well as recyclable lightweight construction technology as the backbone of sustainable material use.

Decarbonisation of aviation through the establishment of Sustainable Aviation Fuel (SAF) production and research into fuels of the future:

– Revenues from aviation environmental levies such as the EU ETS or the aviation levy must be earmarked in favour of research, development and use of sustainable fuels to ensure competitive prices.

– Utilisation of resources from the transformation fund for the ramp-up of sustainable fuels for aviation.

– Provision of small quantities of SAF by the public sector as part of research and development programmes.

– European level, to prioritise the implementation of the Single European Sky for the saving flight time and fuel consumption in European airspace.

Commitment at European level to ensure that the current competitive disadvantages for the European aviation industry are corrected in the planned revision of the European regulation on the blending obligation for sustainable aviation fuels (ReFuelEU) in 2027 (preferably with a target-based SAF levy).

– Targeted support for the establishment of a research infrastructure for the development of hydrogen drives and hydrogen technologies.

– Prioritisation of research funding – for example as part of the FFG Take Off programme – in the field of hydrogen applications for aviation in close coordination with the initiatives of the European Clean Aviation & Clean Hydrogen partnerships.

Safety of air traffic:

– Modern and practical further development of the Aviation Safety Act in close consultation with the aviation industry.

– Provision of sufficient police personnel resources to ensure the continued smooth operation of international air traffic.

– Creating modern, technologically effective responses to the massively increased danger posed by drones to critical infrastructures and facilities requiring special protection.

– Reasonable legal design of the background check in the Austrian Aviation Act, which aims to determine whether the person to be checked can actually be considered a threat to aviation in the individual case.

– Tightening of civil and criminal law provisions for obstructing and damaging critical aviation infrastructure (airports, aircraft, etc.).

Air transport of the future:

– Practical further development of the legal framework and targeted public funding to enable innovations in the passenger journey in air transport.

6. Legal Challenges and Future Outlook

The dynamic nature of aviation poses several legal challenges. Ensuring compliance with evolving regulations, addressing environmental concerns, and integrating new technologies require continuous legal oversight and adaptation.

Data Protection and Privacy:

The General Data Protection Regulation (GDPR) impacts how Austrian aviation stakeholders handle passenger data. Ensuring data privacy and security while leveraging digital innovations is a legal imperative.

International Cooperation:

Austria’s aviation policies are closely aligned with EU regulations and international standards set by ICAO. Collaborative efforts at the European and global levels are crucial for addressing cross-border aviation challenges and enhancing safety and efficiency.

Future Outlook:

The future of Austrian aviation looks promising with ongoing innovations and investments. Legal frameworks will continue to evolve to support sustainable growth, technological advancements, and enhanced connectivity. Stakeholder collaboration and proactive regulatory measures will be key to navigating the complexities of this dynamic industry.

In conclusion, the Austrian aviation sector is undergoing significant transformation driven by sustainability goals, technological advancements, and regulatory changes. Legal frameworks are adapting to support these developments, ensuring that Austria remains at the forefront of aviation innovation and safety. As the industry continues to evolve, ongoing collaboration and robust legal oversight will be essential in shaping the future of Austrian aviation.