Contributor - Europe

Cathy Buyck

Holger Krahmer, the new secretary-general of the European Business Aviation Association (EBAA), spoke with&nbsp;AIN&nbsp;in the trade body’s office in Brussels, Belgium, just ahead of the EBACE 2024 show. The former German Member of the European Parliament has worked as an economist in the banking sector and as a lobbyist in the car industry. Now he's ready to address key issues including&nbsp;carbon neutrality, the creation of a European book-and-claim system for sustainable aviation fuel, how to gain recognition for business aviation's environmental record, and the future of the world's second-largest industry trade show.&nbsp;
You are new to the industry. What are your first observations since assuming your role as EBAA secretary-general in January?
The first months were exciting and a big learning curve. I have 20 years of experience in European Union (EU) regulatory affairs in Brussels, including 10 years as a member of the European Parliament and nearly a decade of public affairs in the automotive industry. Some things are not new. The European car and aviation industries are comparable on several fronts, but what is special about business aviation is that it accounts for a relatively small part of the [air transport] market.
In the first months, I observed that this big EU regulatory machine does not very often reflect the specific needs of smaller sectors like business aviation. Of course, the industry needs to be properly regulated but we simply cannot follow the same rules as commercial aviation. We need regulation tailored to business aviation's very specific operations.
<o:p></o:p>You said the car and aviation industries have a lot of things in common. How so?<o:p></o:p>
The automotive industry has had a journey that includes a very harsh reputational crisis. Like aviation and business aviation specifically, the car industry was and is a politically challenged industry. It’s all about the environmental and climate footprint it has. <o:p></o:p>
There is also the issue of freedom of movement and mobility, which is a very European discussion. Freedom of movement is a value in itself, but access to cities by cars and access to airports for business aircraft is increasingly questioned. Freedom of movement is [incorporated] in the Treaty of the European Union, but it is [no longer] a given by nature. We find ourselves waking up approximately once a week to news from somewhere in Europe about an airport discussing bans or restrictions on business aviation.<o:p></o:p>
Business and general aviation are excluded from the updated EU taxonomy criteria and are not considered green economic activity in contrast to commercial aviation. Why is it treated differently? <o:p></o:p>
From my point of view, the EU Commission decided to exclude us specifically from the list for ideological reasons. Some people there maintain the sector can't ever be sustainable.<o:p></o:p><o:p></o:p>
Many in the industry agree this exclusion is discriminating and unfair, and yet only Dassault Aviation has mounted a legal challenge in the Court of Justice of the EU. Why has EBAA not joined Dassault in this lawsuit?<o:p></o:p>
We're considering joining them. However, no decision has been made.<o:p></o:p>
I'm thrilled that one OEM took the step to dare to challenge the EU Commission's decision in court. I think that must be followed by a strong signal from the sector. This issue isn't just about Dassault; the entire business aviation sector is affected. We're contemplating joining the appeal as a political statement to the EU Commission, signaling that the last word hasn’t been spoken. <o:p></o:p>
The wider public and climate activists portray business aviation as socially exclusive and polluting, accusing it of not taking steps to reduce its carbon footprint. Are you developing a strategy to try to change this perception or do you say, "Forget it, it’s a debate we can’t win?"<o:p></o:p>
No, we cannot ignore this debate. My view after being here for a couple of months is that business aviation operators and the whole private aviation ecosystem tend to hide their business. I believe we should say loud and clear why business aviation is needed and why it is an essential part in Europe's aviation system. To that message belongs the message that this sector has been an innovation driver and has a robust plan to reach net-zero carbon dioxide CO2] emissions by 2050.<o:p></o:p>
Some of the stakeholders, especially green NGOs and radical campaigners, see us as the biggest polluters because they calculate CO2 emissions per passenger. This is completely irrational reasoning. Bizav represents between 7 percent and 9 percent of the traffic in Europe and business aviation flights account for 0.04 percent of global man-made CO2 emissions. If business aviation were grounded tomorrow, approximately 374,000 jobs in Europe and €87 billion in economic output annually would be lost, with little to no significant impact in terms of its climate effects.<o:p></o:p>
How do you shift negative public perception?<o:p></o:p>
In my opinion, the issue lies in communication. In this digital age, we must repeatedly emphasize facts and rationality to move forward. That's why I advocate for transparency—we as an industry need to stop hiding. <o:p></o:p>
An EU-wide blending mandate for sustainable aviation fuel starts next year. Is the industry ready?<o:p></o:p>
We support the SAF uptake obligation and, as EBAA, we have outlined measures to encourage operators to adopt SAF at a higher rate than what is mandated. <o:p></o:p>
However, I think that the [SAF blending] quota that the regulator provided within the ReFuelEU regulation alone will not lead to success. We need more instruments to push up production in Europe, where SAF production capacity is still very low, and also instruments to make it available everywhere across the EU. The main instrument that we need is a book-and-claim system that would allow operators to purchase SAF even if it is not available in their refuel location.<o:p></o:p>
Some of the regulatory stakeholders in Brussels believe a book-and-claim is a tool that will lead to misuse or fraud.<o:p></o:p>
That is for sure not our intention. It is a flexibility tool that is essential because business aircraft operators also fly to smaller airports where the availability of SAF is simply not a given. Our operators are willing to pay more for sustainable fuels because the price sensitivity in our sector is probably not as high as in, for instance, the low-cost carrier segment. That's why we can play the role of an early SAF adopter.<o:p></o:p>
Also, we live in a digital age and it should be possible to make a system [like book-and-claim] safe and secure.<o:p></o:p>
One last thought on SAF: there is currently much more energy going into the discussion than there is fuel in the tanks. We need to overcome this situation.<o:p></o:p>
Illegal charter is a long-standing problem tainting the industry. What will it take to stop it?<o:p></o:p>
There's only one sentence in response: every market participant, whoever it is, must follow the law and be fully compliant. There is no discussion about that. <o:p></o:p>
I don’t know how large a problem illegal charter is; it is difficult to quantify.<o:p></o:p>
EBAA has elected a Luxaviation Group executive to its board. Notably, Luxaviation has been a vocal critic of the EBACE show and, for the fifth consecutive year, they will not be exhibiting at this year’s event. Could this signal potential changes in the show format? Bombardier has followed Gulfstream's lead and will not exhibit at this year’s show. <o:p></o:p>
We are incredibly happy to have Luxaviation, a big operator with a big economic footprint in Europe, back on board. It is truly a reconciliation between the two parties, and I expect a very constructive and close cooperation. They are very supportive of EBAA, and being on the board was for them also a way to show their support.<o:p></o:p>
As regards EBACE, it has been a tremendous success story for 24 years. But we cannot rest on our laurels. I have witnessed a lot of changes in the automotive industry with many large international shows taking a different direction or disappearing because of digitization and manufacturers adopting new ways of product placement. We need to discuss with the OEMs, with the operators, and with the community about how to move forward and the character of the show. That is totally normal. It’s part of doing business.&nbsp;<span style="font-size:11.5pt;line-height:107%;font-family:&quot;Calibri Light&quot;,sans-serif;&lt;br /&gt;
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