German trade body blames domestic taxes for the collapse of Air Berlin

The federal association of Germany’s tourism sector has laid the blame for the collapse of Air Berlin on German taxes and regulation that allowed foreign airlines to take market share from German carriers. “Conditions distorting competition allow foreign competitors to carve out an increasingly large part of passenger volume,” Michael Frenzel, President of association, which represents travel-related industries including tour operators, hotels and airlines. He has called on the German government to ease the burden of costs such as Germany’s air travel tax, which was introduced in 2010.