Why the EU carbon tax may destroy national airlines
There is an interesting response on the Chief Officers’ Network website to the news that China is the first country to formally ban its aircraft from paying the proposed European Union tax on carbon emissions
The network says that if China’s airlines were to be banned from the EU, then it is likely EU carriers would be banned from China.
The article continues:
While other regional airlines such as Malaysia, Thai, Cathay Pacific, JAL, All Nippon and Singapore Airlines (as well as, possibly, Qantas) could pick up the slack, EU airlines might find themselves pleading with Asia Pacific carriers to allow them to drop off their passengers at a hub and have them carried on.
Bangkok, Hong Kong, Singapore and Kuala Lumpur are the most likely candidates although some Emirates (DXB) and Gulf (BAH) ports are also candidates.
Indeed, Emirates’ A380 fleet might find that a new business opportunity can be developed by hubbing through its new A380 service at KUL.
The EU might find that this is a battle that it might win, but at the cost of some of its national airlines.
And if transatlantic traffic collapses, as it may if a similar situation develops with the US, some airlines will be out of business in a matter of weeks.
In the meantime, carriers who have routes that reach across the world without touching down in the EU will have a huge cost advantage. Singapore Airlines SIN – DME (Moscow) – HOU (Houston) will start to look cheap from the airline’s perspective.
Source: Chief Officers’ Network
Ian Jarrett
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