Nine European aviation companies and airlines have joined forces in demanding the EU and its member states take all necessary steps to stop the escalating trade conflict with countries opposing the inclusion of aviation in the European Union’s Emissions Trading Scheme (EU ETS) and push for a global deal under ICAO.
The CEOs of Airbus, Air Berlin, Air France, British Airways, Iberia, Lufthansa, MTU Aero Engines, Safran, and Virgin Atlantic have written joint letters to the heads of state of the four Airbus manufacturing countries—France, the UK, Germany and Spain—urging them “to take action and stop an escalating trade conflict with China and other countries” opposing the ETS. Airbus led the initiative, it confirmed. CEO Tom Enders signed all four letters.
European Commission president Manual Barroso, EC VP-transport Siim Kallas, trade commissioner Karel De Gucht and climate action commissioner Connie Hedegaard are copied on the letters.
The companies’ CEOs argue that the threat of retaliation is becoming “concrete” and will have “serious” consequences on the European aviation business.
“In many of the countries opposed to ETS, countermeasures and restrictions on European airlines are in preparation, such as special taxes and even traffic rights limitations. In China, approval for $12 billion worth of Airbus orders has been suspended,” Airbus said in a statement. It estimates this action will jeopardize more than 1,000 Airbus jobs in Europe and at least another 1,000 jobs in the supply chain.
The CEOs said they expect the list of suspensions, cancellations and punitive actions to grow as other important markets continue to oppose ETS and describe the situation as becoming “intolerable” for the European aviation industry.
They are requesting “urgent consultations” at the level of the EU Council and with the governments taking retaliatory trade action. “The aim must be to find a compromise solution and to have these punitive trade measures stopped before it is too late,” they wrote.
The companies support market-based measures as one of the means to reduce the industry’s environmental impact but insist that “only a global solution would be adequate to resolve the problem of global aviation emissions. This solution can only be found in ICAO.”
On Friday, a meeting of environment ministers from the 27 EU member states reiterated their support for the inclusion of aviation in the EU ETS, although several insiders confirmed that more and more member states are increasingly getting nervous about the mounting retaliatory measures.
The Netherlands’ secretary of infrastructure and environment Joop Atsma last week told the country’s House of Representatives that EU ETS would cost KLM €30 million ($39 million) annually and could result in a loss of 150,000 passengers (0.6% of total passengers carried in 2011) if the airline passes on those costs to customers\. The findings were based on a report by the Netherlands Institute for Transport Policy Analysis—the Kennisinstituut voor.
Article Source : ATW Daily News
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