Chiefs call for halt on carbon law
March 15, 2012, 08:30 am
In a recent letter, European aviation heads urged political leaders to stop the EU carbon law as it poses a serious threat to the industry.
Tom Enders, CEO of Airbus, said China has already suspended all orders for planes worth $12 billion, which will put 2,000 workers at risk of losing their jobs. Other airline CEOs and engine makers called on EU leaders in France, Spain and Germany, warning them of suspensions, cancellations and punitive actions as more carriers oppose the emissions trade scheme.
Leaders of British Airways, Iberia, Air Berlin, Air France, Virgin Atlantic and many engine makers across the globe gave their input in the letter, describing the serious consequences that will likely result from the carbon tax.
However, the European Union argues that it was forced to act when it deployed the carbon law. The United Nations' International Civil Aviation Organization was unable to develop a viable global scheme to reduce carbon emissions across the aviation industry. If the ICAO were to develop its own global system, the EU said it would gladly step aside and modify the newly implemented carbon law.
Many countries, such as China, do not want any laws established that will limit the energy consumption of the aviation industry. China has the world's fastest-growing airline market and is a major purchaser of both Airbus and Boeing jets. The company typically purchases these planes in large quantities and allocates them to different carriers in China. Therefore, if China opposes the carbon tax or a new law under the ICAO, it will have global ramifications on the aviation industry, according to Reuters.
In response, China will likely continue to invest in technology to develop its own planes. The country has already started manufacturing medium-haul passenger jets, and could possibly start creating competition for Boeing and Airbus in the future, Reuters reported.
Bill Hemmings, program manager at environmental group T&E, said Airbus has been reporting significant growth for the past year and hopes to continue this expansion despite the carbon law. One way it hopes to combat the new regulations is by developing more efficient planes, as more carriers will demand them to help them utilize their emissions credits.
"(Airbus) should be smart enough to see that this policy will drive the market in a direction that helps them sell more planes, not less," Hemmings said.
Another way to ensure growth in the future is by investing in pilot insurance as a safety precaution.
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