“Europeans do not travel enough by plane”

The Mobile World Congress has brought together senior political and business officials to address the technological challenges facing the economy.

Oliver Thansan
Oliver Thansan
01 March 2024 Friday 09:29
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“Europeans do not travel enough by plane”

The Mobile World Congress has brought together senior political and business officials to address the technological challenges facing the economy. Transport plays a fundamental role in the whole system and that is why the European Commissioner for Transport, Adina-Ioana Vălean (Băicoi, 1968) has not missed the opportunity. With a degree in Mathematics, this Romanian politician has a long history in Europe linked to the European People's Party. She started in the early 2000s as a European parliamentarian and in 2019 she became head of the Transport commission.

How do you value your participation in the congress?

Very good. It is not the first time I have come and I would like to repeat. Mobile is a great occasion to be with people I normally work with remotely. I have met with managers and participated in the ministerial debate table. The digital industry is key in the development of transportation if we want it to be more sustainable, intelligent and resistant. In this sense, I would like to see more synergies between telephone and transport companies.

How can technology help?

There are many examples but the digitalization of the railway is absolutely necessary. In the multi-annual budget (2021-2027) with 24 billion euros, we are going to allocate 70% to the modernization of the railway network. Especially in cross-border projects. Digitalization will be key for the control of passengers and goods and for electronic signage.

How do you value the liberalization of the railway service?

The market does not work well because there is still a lot of protectionism, especially in national markets. There are many companies that are state-owned and do business in a different way than private companies. I think we need a change of mentality, understanding that the railway network will be very profitable if it generates business throughout Europe and not only in national markets. In any case, the railway is a difficult infrastructure to build and pay for.

Given its key role in the economy, should transport have more weight in EU budget policy? Agriculture has always taken a good part of the pie...

With the crises we have faced in recent years, I think transportation has become very relevant. But the current budget is not enough. Especially in military mobility. We need 6 billion euros to face the war in Ukraine and the states were only willing to spend 1.7 billion euros. Now they have discovered that contributing more money would have been helpful.

Does this also happen in other areas linked to transportation?

It is a general trend. I have noticed that in the calls to finance infrastructure projects there are always an excess of applications. The initiatives are good, but we do not have enough money to cover them. I hope that in the next budget the states will think better about providing funding.

There is a great debate about the environmental impact of the airline sector. Do you think that European citizens fly more than necessary?

No, I don't think we Europeans fly too much. In fact, I don't think we fly enough. Transportation is the backbone of the economy. I think that in the EU we do not need to tell people what type of transport is good and what is bad. Who are we to tell them how to live? If they ask us to make better sustainability policies, we have solutions: we don't need to fly less, we need to fly better.

To reduce the environmental impact of airplanes, the EU forces airlines to reduce emissions by using cleaner fuels. Recently, Lufthansa CEO Carsten Spohr stated that these goals are not realistic. Are you considering reviewing them?

I am surprised by this criticism, since Lufthansa showed us its support for the emissions reduction targets. The plan we have approved is solid and has been written based on scientific analysis. It is too early to assess whether or not it is realistic. The main problem that airlines face is the lack of production of alternative fuels.

So could the Commission reduce the requirements if airlines do not comply?

At the moment it is too early to evaluate the plan since the new requirements begin in 2025 and only require the use of 2% alternative fuel. I trust the plan will work. And, if not, we are going to reevaluate it. Our policies are not set in stone.

Continuing with the environmental impact of aviation. Would you support the controversial expansion of Barcelona airport?

Airports are hubs. They are more than just a place where people land and take off on a plane. There is a whole business around it. Airports are connected to railways and seaports. If this business needs to expand, if there is a business case, I would encourage them to do so. As you expand, you can also go greener. There is European funding for this.

How can an airport expand and become greener at the same time?

For example, planes on the ground will have to be connected to electricity so as not to burn fuel. In addition, airports can be supplied with renewable energy sources. Of course, an integrated approach to infrastructure design is essential.

In Spain there is concern about the absorption of Air Europa by IAG. Lufthansa has also taken control of Alitalia. Do you think that the consolidation of the European airline market is good for passengers?

It depends. Now, the Commission is evaluating whether the merger would imply a monopoly on some routes. What interests us is the solidity of an airline because if this company does not work well, this has an impact on the economy, the passengers and their rights. We must not forget that outside the EU there are wolves waiting to take their place, wolves that may be heavily subsidized by foreign governments. We have to defend the European airline industry.

Speaking of prices, do you think flying is too cheap?

Absolutely. I think prices have risen in part because the EU is putting pressure on airlines with restrictions and fees, like the new kerosene tax. From the Commission, we are vigilant with prices. We wouldn't want there to be people who couldn't afford to fly.

And regarding the decarbonization of the car, how do you see the slow progress of the electric vehicle? Recently, the president of Renault, Luca de Meo, recognized that it is a product for the elite.

I can't comment on his words but it is true that the prices are comparable to luxury ranges. This is because production costs are still too high.

What could the EU do to make these cars more affordable?

Governments can encourage their sale with subsidies but I, as a politician, do not agree. It doesn't seem fair to me that the entire population subsidizes a product that is quite niche with their taxes. From the EU, we have imposed that in 2035 only new vehicles that are electric can be marketed. We'll see if it works. I really hope this is the case since we are investing a lot of European money in the production of batteries, so that they are less expensive and more sustainable.