Major airlines make plea over EU carbon tax
Seven major aviation companies have written to political leaders claiming the new EU Emissions Trading Scheme is posing an "intolerable" threat to European aviation.
The signatories, which include Airbus, British Airways and Virgin Atlantic, argue the carbon pollution scheme is jeopardising jobs and billions of dollars of orders from China.
They claim it is also opening up the possibility of trade battles with China, the US and Russia, see previous story.
According to Airbus and its airline partners in Europe, three state-owned Chinese airlines are refusing to finalise orders for 45 Airbus A330 long-haul jets worth up to $12 billion.
Their argument was outlined in letters to European political leaders, including Britain’s David Cameron, Germany’s Angela Merkel, France’s François Fillon and Spain’s Mariano Rajoy.
The campaign was orchestrated by Tom Enders, chief executive of Airbus, and backed by British Airways, Virgin Atlantic, Lufthansa, Air France, Air Berlin and Iberia. The heads of Safran of France and MTU of Germany, two big makers of aerospace engines, also signed the letters.
Airbus wants the EU to "put on hold" the extension of the scheme to airlines until a global plan for regulating carbon emissions by airlines can be agreed.
It said half of the 2,000 jobs threatened by the stalled Chinese orders were located at its own plants in France, Germany, the UK and Spain, with the rest parts suppliers.
The industry executives also said they expect "suspensions, cancellations and punitive actions" by other countries to grow as other important markets continue to oppose the extension of ETS.
A spokesman for Connie Hedegaard, Europe’s climate commissioner, reiterated the bloc’s determination to press ahead with the scheme next year, but added the EU was "keen on exploring the different possibilities and flexibility that the legislation allows".
Last week Wu Haidong, China’s ambassador to the EU, called the new ETS rules "hasty". However, officials in Beijing have refrained from making public comments, saying the decision to buy Airbus aircraft is a commercial matter for Chinese airlines.
by Valere Tjolle and Diane Evans
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