Airports Face Airline Carbon Emissions Scheme

Airports Face Airline Carbon Emissions SchemeAirport passengers are set for higher air fares after the European Parliament gave its approval for airlines to be included in a new carbon emissions trading scheme.

From 2012, airlines will have cut their carbon dioxide emissions and pay more to purchase carbon credits.

Airlines are expected to pass the extra costs onto airport passengers.

It is estimated that at least 39.60 euros (£31.50) could be added to the price of long-haul return flight, and up to 9 euros for a short-haul trip.

European officials said the revenues generated from the carbon trading scheme would be used to fund new greeen transport programmes.

EU Emissions Trading Scheme

However, the industry is sceptical of the emissions trading scheme.

Giovanni Bisignani, the International Air Transport Association (IATA) chief executive, said there is "no assurance that any of the money will go to environemental programmes".

He said: "It's time for Europe's politicians to be honest. This is a punitive tax put in place by politicians who want to paint themselves green".

He added that the carbon trading scheme would have an adverse effect on airlines and the airport industry, by placing more financial pressure on the industry at a time when it is struggling to come to terms with rising costs.

Bisignani argued that up to two-thirds of airlines' profits could be eaten into by the EU carbon emissions programme.

Airport Growth Plans

He added that it would act as a barrier to airport growth plans by discouraging airlines from expanding their route network.

The European Commission refuted this suggestion, with the Environment Commissioner Stavros Dimas pointing to the fact that smaller airlines will be exempt from the scheme and those undergoing a period of sustained growth would be offered free permits.

Dimas said the scheme was essential to combat rising emissions in the industry. Emissions from airlines could more than double by 2030, he said.

Environmentalists complained the scheme did not go far enough. Friends of the Earth said it was "weak" and would have "little impact".

Source - Airport International's Aviation Correspondent

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