- a person suffers a fatal or severe injury on board or in connection with an aircraft;
- an aircraft has suffered damage because of which the aircraft’s performance, its structural strength or flight characteristics are impaired and the repair involves considerable efforts or a replacement of the damaged part;
- disruptions that impair or could impair the safe operation of a flight; or
- fatal and severe injuries.
The BFU establishes a report on every investigation in which, inter alia, the details of the accident or disruption, the aircraft concerned, the external circumstances, the results of the investigations and the discovery of the (potential) cause of the accident or disruption are indicated. When establishing the report, the BFU may hear the operator of the aircraft, the manufacturer, the crew, representatives of foreign states, ATC and the German Meteorological Service. The BFU may also request assistance, information, documents and equipment from other states for conducting the investigation.
The aim of the BFU is to determine the cause of an accident but they do not establish liability.
1.10 Have there been any recent cases of note or other notable developments in your jurisdiction involving air operators and/or airports?
An airline had asked a German court to temporarily suspend a pending court case due to the COVID-19 pandemic. The airline argued that it was cut off from corresponding with the court due to the COVID-19 pandemic and that it could, therefore, not continue the proceedings. The Local Court in Hamburg rejected this request with the argument that, in order to suspend proceedings due to cut-off communication according to Article 247 of the German Civil Procedure Code, the party must be cut off from communication with the court by order of the authorities, by war or by other circumstances. The court took the view that such a situation is not given with the COVID-19 pandemic as the airline is still able to correspond with the court. In addition, it is not impossible to send a representative to a court hearing.
1.11 Are there any specifically environment-related obligations or risks for aircraft owners, airlines, financiers, or airports in your jurisdiction, and to what extent is your jurisdiction a participant in (a) the EU Emissions Trading System (EU ETS) or a national equivalent, and (b) ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)?
Germany participates in the EU Emissions Trading Scheme (EU ETS) as well as in ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
2. Aircraft Trading, Finance and Leasing
2.1 Does registration of ownership in the aircraft register constitute proof of ownership?
The aim of registering an aircraft in the German Aircraft Register is so that the aircraft is authorised to operate in Germany.
However, registration in the Aircraft Register does not establish ownership over the aircraft. Therefore, incorrect registration does not create a legal presumption of ownership for a person registered incorrectly.
2.2 Is there a register of aircraft mortgages and charges? Broadly speaking, what are the rules around the operation of this register?
In Germany, aircraft mortgages can be registered in the Aircraft Mortgage Register (Register für Pfandrechte an Luftfahrzeugen) at the Local Court in Braunschweig.
An application for registration of an aircraft mortgage can only be filed once the aircraft is registered on the Aircraft Register. The application for registration of an aircraft mortgage must:
- indicate the Aircraft Register number for the relevant aircraft; and
- be drafted and filed by a German notary by way of notarial deed in the German language.
The notarial deed must be filed with the Local Court in Braunschweig and include the following documents and information:
- The application for registration of the mortgage, which indicates the mortgage amount and the interest specifications.
- General information on the aircraft, including:
- the page number of the Aircraft Register on which the aircraft is registered;
- the nationality and registry mark of the aircraft;
- the aircraft type;
- the serial number of the airframe; and
- the name and place of residence of the aircraft owner.
On receipt of the application, the Local Court of Braunschweig will request payment of the registration fees. The amount of these fees is based on the value of the mortgage, and is calculated in accordance with the provisions of the German Court Fee Act (Gerichtskostengesetz).
The aircraft mortgage is registered once the payment of the registration fees is made and once the Court has reviewed and approved the required documents. Registration of an aircraft mortgage takes about two to three days from receipt of payment by the Court.
There is no separate mortgage register for aircraft engines and spare parts in Germany. An aircraft mortgage can only be registered over the whole aircraft. Spare parts or engines attached to the aircraft are not identified separately in the Aircraft Mortgage Register. The engines and spare parts are considered parts of the aircraft. A registered aircraft mortgage will also cover spare parts and engines if both:
- the aircraft owner is also the owner of the spare parts and engines; and
- the engines and spare parts are attached to the aircraft.
The parties can agree that an aircraft mortgage extends to engines and spare parts that are located elsewhere and are not attached to the aircraft. However, it is not possible to grant a mortgage solely over the engines and/or spare parts.
To perfect an aircraft mortgage, the mortgage must be registered in the German Aircraft Mortgage Register. A registered aircraft mortgage takes priority over any subsequently registered mortgage. The buyer of an aircraft will become the owner subject to any previously registered mortgage (and free of any mortgage that was not registered at the time of the purchase).
2.3 Are there any particular regulatory requirements which a lessor or a financier needs to be aware of as regards aircraft operation?
There is no specific register for aircraft leases in Germany.
An aircraft lease is not in itself registered in the Aircraft Register. However, if both the owner and the operator (that is, the lessee) of the aircraft are registered when the aircraft is registered, it is implied that the aircraft is a leased aircraft.
An aircraft lease must be approved by the LBA. The application form must be filed with the LBA at least four weeks before the intended start of the lease. The following documents and information must be provided to the LBA with the application form:
- Aircraft type.
- Aircraft registration number.
- Aircraft serial number.
- Name and address of the operator and the owner.
- Copy of the certificate of airworthiness.
- Copy of the lease agreement or description of the lease agreement, including the financial agreements.
- A declaration signed by the lessee that the parties are aware of their responsibilities.
- Proof that the foreign air carrier (if any) has a valid operating permit and a valid air operator certificate (AOC), and that the aircraft subject to the lease is listed in the AOC of the foreign air carrier (in the case of a wet lease).
- Proof that the aircraft is insured against damages covered by the statutory liability of German air carriers.
2.4 As a matter of local law, is there any concept of title annexation, whereby ownership or security interests in a single engine are at risk of automatic transfer or other prejudice when installed ‘on-wing’ on an aircraft owned by another party? If so, what are the conditions to such title annexation and can owners and financiers of engines take pre-emptive steps to mitigate the risks?
Under German law, spare parts cannot individually be subject to an aircraft mortgage. A mortgage can only be registered over the whole aircraft. Spare parts or engines are not identified separately in the Aircraft Mortgage Register.
Spare parts are considered as parts of the aircraft. A registered aircraft mortgage also covers spare parts if both:
- the owner of the aircraft is also the owner of the spare parts; and
- the spare parts are affixed to the aircraft.
If the spare parts are not affixed to the aircraft but are located in a different place, the parties can agree that the aircraft mortgage also covers these spare parts. The extension of the mortgage over these spare parts must also be registered in the Aircraft Mortgage Register.
However, it is not possible to register a mortgage solely over spare parts in the Aircraft Mortgage Register.
The following other forms of security can be taken over spare parts under German law:
- Retention of title (Article 449, German Civil Code (Bürgerliches Gesetzbuch – BGB)).
- Chattel mortgage (Articles 929 and 930, BGB).
- Lien (Articles 1204 et seq., BGB).
These forms of security are not registered in any official register, but are solely based on the agreement between the grantor of the security and the secured party.
2.5 What (if any) are the tax implications in your jurisdiction for aircraft trading as regards a) value-added tax (VAT) and/or goods and services tax (GST), and b) documentary taxes such as stamp duty; and (to the extent applicable) do exemptions exist as regards non-domestic purchasers and sellers of aircraft and/or particular aircraft types or operations?
The import of an aircraft into Germany is exempt from VAT if the aircraft is to be used by a company that predominantly undertakes international air carriage (Articles 4 and 8, para. 2, no. 1, German Value Added Tax Act (Umsatzsteuergesetz – UStG)). The German Federal Ministry of Finance has published a list of the companies that mainly operate international air carriage.
If the conditions for VAT exemption are not met, import VAT may be payable at a rate of 19%. However, pre-tax allowances may apply.
2.6 Is your jurisdiction a signatory to the main international Conventions (Montreal, Geneva and Cape Town)?
Germany is a party to the main following multilateral agreements relating to international carriage:
- Convention on International Civil Aviation (Chicago) – 8 June 1956.
- International Air Services Transit Agreement (Chicago) – 8 June 1956.
- Convention on the international recognition of rights in aircraft (Geneva) – 5 October 1959.
- Convention for the unification of certain rules relating to international carriage by air (Warsaw) – 29 December 1933.
- Protocol to amend the Warsaw Convention (The Hague) – 1 August 1963.
- Convention, supplementary to the Warsaw Convention, for the unification of certain rules relating to international carriage by air performed by a person other than the contracting carrier (Guadalajara) – 31 May 1964.
- Convention for the unification of certain rules relating to international carriage by air (Montreal) – 28 June 2004.
- Convention on offences and certain other acts committed on board aircraft (Tokyo) – 16 March 1970.
Germany signed the Cape Town Convention on 17 September 2002 but has not ratified it. Germany has no current plans to ratify the Cape Town Convention.
2.7 How are the Conventions applied in your jurisdiction?
The International Conventions are ratified and thereby implemented into directly applicable national and EU law.
2.8 Does your jurisdiction make use of any taxation benefits which enhance aircraft trading and leasing (either in-bound or out-bound leasing), for example access to an extensive network of Double Tax Treaties or similar, or favourable tax treatment on the disposal of aircraft?
Germany has transposed the Sixth Directive 77/388, as amended by Directive 92/111, into national law.
The European Court of Justice ruled, on 19 July 2012, that: “Article 15(6) of Directive 77/388, as amended by Directive 92/111, must be interpreted as meaning that the exemption for which it provides also applies to the supply of an aircraft to an operator who is not itself an ‘airline operating for reward chiefly on international routes’ within the meaning of that provision but which acquires that aircraft for the purposes of exclusive use thereof by such an undertaking.”
2.9 To what extent is there a risk from the perspective of an owner or financier that a lessee of aircraft or other aviation assets in your jurisdiction may acquire an economic interest in the aircraft merely by payment of rent and thereby potentially frustrate any rights to possession or legal ownership or security?
The answer to that question mainly depends on the wording of the leasing contract. From a legal perspective, if nothing different is ruled in the leasing contract, the lessee cannot acquire an economic interest in the aircraft just by payment of the rent to the effect that legal ownership or security would be at risk.
3. Litigation and Dispute Resolution
3.1 What rights of detention are available in relation to aircraft and unpaid debts?
First, the creditor must obtain an enforceable title in respect of the outstanding debts by filing legal proceedings before a civil court.
If the aircraft in question is registered in the German Aircraft Register, the creditor can file an application with the Local Court in Braunschweig (where the Mortgage Register is kept) for the entry of a registered mortgage on the aircraft. With the mortgage, the creditor can force the aircraft owner (in rather formal proceedings) that the aircraft is sold in a public auction.
If the aircraft is not registered in the Aircraft Register (e.g. because it is a foreign aircraft), the title in respect of the outstanding debts can be enforced by instructing a bailiff with the seizure of the aircraft.
As a further measure, the creditor can apply for an arrest of the aircraft until the enforcement proceedings actually start.
3.2 Is there a regime of self-help available to a lessor or a financier of an aircraft if it needs to reacquire possession of the aircraft or enforce any of its rights under the lease/finance agreement?
Self-help remedies are not recognised in Germany, including in the event of default. The lessor or financier must abide by the remedies and procedures provided by German laws to reacquire possession of the aircraft.
3.3 Which courts are appropriate for aviation disputes? Does this depend on the value of the dispute? For example, is there a distinction in your jurisdiction regarding the courts in which civil and criminal cases are brought?
In Germany, special courts for aviation disputes do not exist.
Civil claims must be brought before the German civil courts, and administrative or criminal claims must be brought before the German administrative/criminal courts.
Concerning civil court cases, the Local Courts handle cases with a dispute value of up to €5,000. Cases with a dispute value of more than €5,000 as well as appeals are heard before the Regional Courts. An appeal against a judgment is not possible if the dispute value is €600 or less.
3.4 What service requirements apply for the service of court proceedings, and do these differ for domestic airlines/parties and non-domestic airlines/parties?
In principle, the court documents shall be delivered to the Plaintiff or, if known to the court, to the person or entity authorised to accept service on behalf of the Plaintiff. There are no distinctions between foreign and domestic parties.
When service on foreign parties must be effected abroad, the procedure of service depends on whether service is made in an EU or a non-EU country. Service in EU countries can be made via a registered letter, whereas service in non-EU countries must be effected in compliance with the relevant bilateral agreements between the sending and the receiving state. Service to certain non-EU countries has to be effected via formal diplomatic channels.
The court and the LBA can ask the airlines from non-EU Member States to determine a person or entity in Germany who is authorised to accept service on the airline’s behalf. The relevant correspondence will then be sent to this designated entity.
When service on foreign parties is effected abroad, the courts often arrange for a translation of the court documents.
The losing party must bear the costs for the translation and also the service costs.
3.5 What types of remedy are available from the courts or arbitral tribunals in your jurisdiction, both on i) an interim basis, and ii) a final basis?
Concerning passenger claims, on 1 November 2013, the conciliation instrument of alternative dispute resolution (ADR) came into force in Germany to avoid court proceedings in the case of delays, cancellations and denied boarding as well as baggage claims. A framework for voluntary conciliation has been created, so that passengers can make use of this if an airline does not satisfy their claims within two months. Claims of up to €5,000 are dealt with by the conciliation institutions. There are private law ADR bodies that have been certified by the German authorities and which airlines can join. If an airline has not joined such ADR body, the passenger can turn to the ADR authority within the German Ministry of Justice. The conciliation proceedings are free of charge for the passenger.
The LBA is the National Enforcement Body regarding Regulation (EC) No. 261/2004 and regarding Regulation (EC) No. 1107/2006. It handles passenger complaints free of charge for the passenger. However, the LBA does not have the power to order an airline to pay compensation or to undertake certain measures towards the passenger, but only to impose a fine on an airline for not paying compensation or for not providing certain assistance.
The most common and important remedy is the filing of a lawsuit with the competent courts to pursue one’s rights. Representation by a lawyer is not mandatory for claims not exceeding €5,000.
Concerning civil court cases, the Local Courts (Amtsgericht) handle cases with a dispute value of up to €5,000. Cases with a dispute value of more than €5,000 as well as appeal cases coming from the Local Courts are heard before the Regional Courts (Landgericht). If the Regional Court is the competent court in the first instance (dispute value exceeding €5,000), the Higher Regional Court (Oberlandesgericht) is the competent appeal court. An appeal against a judgment is not possible if the dispute value is €600 or less, unless the Regional Court explicitly grants an appeal if the case is of major importance or if an appeal is considered to be necessary for the development of the law.
In certain cases, the appeal court can admit a further appeal (Revision) to the Federal Court of Justice (Bundesgerichtshof – BGH). This is only possible if the appeal court considers the case to be of major importance or if a further appeal is considered to be necessary for the development of the law.
3.6 Are there any rights of appeal to the courts from the decision of a court or arbitral tribunal and, if so, in what circumstances do these rights arise?
If the first instance court is a Local Court, an appeal is possible if the dispute value exceeds €600. In such a case, an appeal can be filed with the Regional Court.
If the first instance court is a Regional Court, the competent appeal court is the Higher Regional Court.
In special cases, a further appeal is admitted, which is dealt with by the Federal Court of Justice, being the highest German civil court.
3.7 What rights exist generally in law in relation to unforeseen events which might enable a party to an agreement to suspend or even terminate contractual obligations (in particular payment) to its contract counterparties due to force majeure or frustration or any similar doctrine or concept?
Deferral or payment by instalments
Deferral or payment by instalments must be agreed between the parties to the contract. German law does not provide for payment deferral by law. In commercial contracts, so-called “force majeure clauses” are often used. The purpose of such a clause is to create an appropriate distribution of risk for circumstances that are not under the control of either party to the contract. If a force majeure event occurs, the fulfilment of contractual obligations is suspended at least temporarily.
Disruption of the contractual basis
Article 313 of the German Civil Code provides for a statutory adaptation of the contract or an extraordinary right of withdrawal if circumstances which have become the basis of the contract have changed so seriously after the conclusion of the contract that the parties would not have concluded the contract or would have concluded it only with different content if they had known of the circumstances already at the point in time of the conclusion of the contract. In practice, this legal provision is usually not used successfully as there is often only a temporary change in the economic situation or the risk of economic deterioration can be attributed to one of the parties to the contract.
Release from performance due to impossibility
According to Article 275.1 of the German Civil Code, the debtor is released from his obligation to perform the contract to the extent that performance is impossible for him (subjectively) or for anyone (objectively). However, this does not apply to monetary debts. Inability to pay does not lead to a release from having to perform the contract. According to the case law of the German Federal Court of Justice, everyone is liable for his financial performance according to the principle of unlimited property liability regardless of fault. All other contractual services, however, fall under Article 275.1 of the German Civil Code. The question of whether the circumstance leads to a case of impossibility depends on the concrete form of the contract and the obligation to perform in the individual case. For example, whether the agreed service can still be provided at a later point in time or whether the purpose of the service can no longer be achieved due to the failure to meet the deadline plays a significant role. If the debtor is released from his obligation to perform, according to Article 326.1 of the German Civil Code, the contractual partner is also not obliged to provide the consideration – e.g. the remuneration for the service or the purchase price.
4. Commercial and Regulatory
4.1 How does your jurisdiction approach and regulate joint ventures between airline competitors?
Joint ventures between airline competitors are subject to merger control if the joint venture is designed as a merger.
If the joint venture is created on the basis of a cooperation agreement, German cartel law can be relevant.
4.2 How do the competition authorities in your jurisdiction determine the ‘relevant market’ for the purposes of mergers and acquisitions?
Much like European law, under German law, to avoid dominant market positions, the cartel authority can control company growth in respect of the merging of companies. The essential authority with regard to mergers and acquisitions is the Federal Cartel Office (Bundeskartellamt).
The relevant legal framework in this regard is the German Act against Restrictions on Competition (Gesetz gegen Wettbewerbsbeschränkungen). German cartel law fully applies to aviation-related companies (e.g. airlines).
4.3 Does your jurisdiction have a notification system whereby parties to an agreement can obtain regulatory clearance/anti-trust immunity from regulatory agencies?
According to Article 35 and the following of the Act against Restraints in Competition (Gesetz gegen Wettbewerbsbeschränkungen – GWB), parties can obtain regulatory approval for mergers from the Bundeskartellamt.
4.4 How does your jurisdiction approach mergers, acquisition mergers and full-function joint ventures?
Article 37 of the GWB legally defines a merger as an acquisition of assets, acquisition of joint or sole control, acquisition of shares (50% or at least 25%) or an exercise of competitively significant influence.
4.5 Please provide details of the procedure, including time frames for clearance and any costs of notifications.
Once the Bundeskartellamt has received the complete notification, the examination procedure begins. The authority then has one month to assess whether the project needs to be examined more closely or whether it can be approved (so-called “first phase”). The vast majority of the more than 1,000 merger control proceedings per year can be concluded with a clearance in the first phase.
If there are indications of competition problems that cannot be resolved within the preliminary examination procedure, a formal main examination procedure is initiated (so-called “second phase”), which can take a total of four months from the date of notification.
The notification of mergers is subject to charges. The amount of the notification proceeding is determined on the basis of the personnel and material expenditure of the cartel authority under consideration of the economic significance of the concentration. According to Article 80 para. 2 sentence 2 No. 1 of the GWB, the fee may not exceed €50,000; in exceptional cases it may be double (Article 80 para. 2 sentence 3 of the GWB).
4.6 Are there any sector-specific rules which govern the aviation sector in relation to financial support for air operators and airports, including (without limitation) state aid?
Sector-specific rules do not exist but there are diverse forms of support, e.g. tax relief regarding kerosene and VAT, and also state aid for airlines.
4.7 Are state subsidies available in respect of particular routes? What criteria apply to obtaining these subsidies?
The state subsidies are regulated under the so-called “public service obligations” according to Article 16 and the following of Regulation (EC) No. 1008/2008. The single criteria are determined in the public tender procedure (Articles 16 paras 10 and 17 of Regulation (EC) No. 1008/2008).
4.8 What are the main regulatory instruments governing the acquisition, retention and use of passenger data, and what rights do passengers have in respect of their data which is held by airlines and airports?
The main regulatory instruments governing the acquisition, retention and use of passenger data are the General Data Protection Regulation (Regulation (EU) 2016/679), the German Federal Data Protection Act (Bundesdatenschutzgesetz – BDSG) and the German Passenger Data Act (Fluggastdatengesetz).
The GDPR and the BDSG apply to the protection of personal data of an individual, thus also passenger data. According to Article 6 of the GDPR, personal data may only be collected, saved, used and processed if:
- the data subject has given consent to the processing of his or her personal data for one or more specific purposes;
- processing is necessary for the performance of a contract to which the data subject is party or in order to take steps at the request of the data subject prior to entering into a contract;
- processing is necessary for compliance with a legal obligation to which the controller is subject;
- processing is necessary in order to protect the vital interests of the data subject or of another natural person;
- processing is necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the controller; or
- processing is necessary for the purposes of the legitimate interests pursued by the controller or by a third party, except where such interests are overridden by the interests or fundamental rights and freedoms of the data subject which require protection of personal data, in particular where the data subject is a child.
The German Passenger Data Act is the transposition of Directive 2016/681 on the use of passenger name record (PNR) data for the prevention, detection, investigation and prosecution of terrorist offences and serious crime into German law.
This law stipulates that the Federal Criminal Police is the Passenger Information Unit that maintains a Passenger Data Information System and regulates the transmission of passenger data to this unit, the processing and transmission by this unit as well as data protection.
The processing of passenger data is intended to prevent and prosecute terrorist offences and serious crime.
Passenger data are checked by the Passenger Information Unit to determine whether, for example, a person is searched for by the police or if there are indications that police action is necessary to prevent or prosecute terrorist offences or serious crime. If this is the case, the Federal and state security authorities responsible for further measures are informed. If not, the data will remain exclusively with the Passenger Information Unit.
The data that are transmitted to the Passenger Information Unit are the data indicated in the PNR in respect of bookings for flights departing from Germany and landing in another country, or departing from another country and landing in Germany.
After transmission by the air carrier, the passenger data are saved in the Passenger Information System of the Federal Police for five years. Data elements enabling identification are made unrecognisable (depersonalised) six months after their transmission.
4.9 In the event of a data loss by a carrier, what obligations are there on the airline which has lost the data and are there any applicable sanctions?
In the event of a data loss by a carrier, the airline must notify such data loss immediately (without undue delay), and not later than 72 hours after having become aware of it, to the competent supervisory authority, unless the personal data breach is unlikely to result in a risk to the rights and freedoms of natural persons.
The loss of data must also be reported to the data subject concerned.
The sanction for non-compliance with the reporting obligations is a fine of up to €10 million or up to 2% of the annual worldwide turnover of the preceding financial year in case of an enterprise, whichever is greater.
4.10 What are the mechanisms available for the protection of intellectual property (e.g. trademarks) and other assets and data of a proprietary nature?
Intellectual property refers to creations of the mind: inventions; literary and artistic works; and symbols, names and images used in commerce. Intellectual property is divided into two categories: industrial property, which includes patents for inventions, trademarks, industrial designs and geographical indications; and copyright, which covers literary works (such as novels, poems and plays), films, music, artistic works (e.g. drawings, paintings, photographs and sculptures) and architectural designs.
In Germany, intellectual property is protected by industrial property rights against the unauthorised use of such signs, which could mislead consumers, and against misleading practices in general.
The German Patent and Trademark Office (Deutsches Patent- und Markenamt) is the administrative body dealing with industrial property rights.
German copyright law protects works of literature, science and art, provided such works are the intellectual creation of the author.
The most important requirement for copyright protection under German law is the creative and individual nature of the work. The level of originality required for protection under the German Copyright Act (Urheberrechtsgesetz) is to be determined in accordance with the type of work.
German copyright is not subject to any registration proceeding. In fact, copyright protection arises automatically with mere creation of the work. Thus, neither any registration nor any publication is required.
A breach of an industrial property right can be pursued in court proceedings.
4.11 Is there any legislation governing the denial of boarding rights and/or cancelled flights?
In Germany, passenger rights are mainly governed by EU Regulations, especially Regulation (EC) No. 261/2004 regarding flight cancellations and delays, as well as denied boarding and overbooking. Further, the Montreal Convention applies in respect of passenger rights.
4.12 What powers do the relevant authorities have in relation to the late arrival and departure of flights?
Please see question 3.5 above.
4.13 Are the airport authorities governed by particular legislation? If so, what obligations, broadly speaking, are imposed on the airport authorities?
Airport operators are subject to German and EU legislation and the international agreements signed by Germany.
Under the LuftVG, the construction and operation of an airport is subject to the permission of the relevant authority. Environmental law and construction law requirements have to be taken into account.
Airport coordination is based on EU law. The airports of Berlin (Schönefeld and Tegel), Bremen, Dresden, Düsseldorf, Erfurt, Frankfurt/Main, Hamburg, Hannover, Cologne/Bonn, Leipzig/Halle, Munich, Münster/Osnabrück, Nuremberg, Saarbrücken and Stuttgart are coordinated airports as per Regulation (EC) No. 95/93. The slots are allocated by Airport Coordination Germany (FHKD), which is an independent non-profit organisation financed by German airlines and airports.
4.14 To what extent does general consumer protection legislation apply to the relationship between the airport operator and the passenger?
Consumer protection law is a very broad field of law which appears as a cross-sectional subject in a wide variety of areas. Consumer protection regulations can be found in various fields of law and legal codes; there is no independent set of regulations.
The aim of consumer protection law is to protect consumers, who can regularly find themselves in a weaker negotiating and knowledge position than the companies. Consumers should be protected when concluding a contract or making a purchase. That is why transparency and consumer information are very important for the German market.
The consumer protection regulations protect the general interests of consumers with regard to unfair commercial practices, misleading and comparative advertising, price indications and labelling, unfair contract terms, distance selling and doorstep selling, time sharing and package tours and rights of holiday or business travellers.
As a general rule, however, there is no contractual relationship between passengers and airport operators. Passengers normally enter into air carriage contracts with airlines or tour operators. The airlines, in turn, enter into agreements with airport operators for the provision of services to passengers. Therefore, passengers and airport operators do not have a direct contractual relationship and many consumer protection rules are therefore not directly applicable between these parties.
Special transparency is required with regard to airport charges payable by passengers. There are also many general public regulations relating to safety and security in Germany in order to protect customers in airports. As an example, Regulation (EC) No. 1107/2006 concerning the rights of disabled persons and persons with reduced mobility when travelling by air provides that passengers with a disability or reduced mobility must be appropriately assisted by airport operators.
4.15 What global distribution suppliers (GDSs) operate in your jurisdiction?
After several consolidations, there are essentially only three global systems left: Amadeus; Galileo/Travelport; and Sabre.
4.16 Are there any ownership requirements pertaining to GDSs operating in your jurisdiction?
No. In Germany, there are no ownership requirements pertaining to GDSs.
4.17 Is vertical integration permitted between air operators and airports (and, if so, under what conditions)?
Vertical integration is permitted between airport operators and airports, i.e. it would be possible for an air operator to buy shares in an airport. However, potential restrictions could apply under the relevant laws.
4.18 Are there any nationality requirements for entities applying for an Air Operator’s Certificate in your jurisdiction or operators of aircraft generally into and out of your jurisdiction?
The general requirements for the application of an AOC are as follows:
- The undertaking’s principal place of business must be in the Member State in which the application for an operating licence is made.
- The main activity is the provision of air services, either alone or in conjunction with any other form of commercial operation of aircraft or repair and maintenance of aircraft.
- The air carrier must be owned directly or through majority ownership by Member States and/or nationals of Member States.
- It must at all times be effectively controlled by those States or their nationals.
- Air carriers must have at least one aircraft either as owner or under a dry lease contract.
- The aircraft to be used by an air carrier shall be listed in the relevant national registers or within the Community.
- German approval authorities generally require registration in the German Aircraft Register.
5. In Future
5.1 In your opinion, which pending legislative or regulatory changes (if any), or potential developments affecting the aviation industry more generally in your jurisdiction, are likely to feature or be worthy of attention in the next two years or so?
In Germany, government elections took place in September 2021. During their election campaign, the Green Party claimed that they would prohibit domestic flights. They are of the opinion that these flights are especially harmful to the environment and the atmosphere as they are unnecessary, considering that such rather short distances could be covered by train instead. The Green Party will – which is now clear after the elections – definitely be part of the new German government which has recently been formed. It therefore remains to be seen whether they will uphold their claim and whether they will be able to convince their coalition partners within the government to carry out this prohibition.
Production Editor's Note
This chapter has been written by a member of ICLG's international panel of experts, who has been exclusively appointed for this task as a leading professional in their field by Global Legal Group, ICLG's publisher. ICLG's in-house editorial team carefully reviews and edits each chapter, updated annually, and audits each one for originality, relevance and style, including anti-plagiarism and AI-detection tools. This chapter was copy-edited by Hollie Parker , our in-house editor.
- Buy Chapter in PDF format £100
- Buy the Book in PDF format £295
