European Airlines Say EU Climate Plan Will Harm Competitiveness

An alliance of airlines and airports called for changes to the European Union’s planned climate change legislation on Monday, arguing it will make them less competitive with non-European rivals.

Taking aim at aviation, a sector deemed responsible for up to 3% of global emissions, the European Union presented plans last July that foresee stricter rules on CO2 emissions and the use of synthetic fuel blends, as well as the implementation of a kerosene tax.

The alliance, whose nearly 20 members include all Lufthansa subsidiaries, Air France-KLM and major airports such as Frankfurt and Amsterdam’s Schipol, argues long-haul flights via non-European hubs would not be subjected to the same associated costs, leading to a potential shift in business to such carriers.

The alliance rejects a kerosene tax outright and proposes that the environmental protection surcharge be based on the entire flight route, not just feeder flights bringing passengers from the EU to international hubs such as Istanbul or Dubai.

In principle, the alliance is however in favour of the EU’s “Fit for 55” climate package, which aims to reduce greenhouse gas emissions by 55% by 2030 compared with 1990 levels.

(Reporting by Ilona Wissenbach Editing by Miranda Murray and Susan Fenton)

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